A recent report from the Prime Minister’s Economic Advisory Council highlights significant regional differences in India’s development since the 1960s. Southern states like Karnataka and Telangana have thrived post-liberalization, becoming economic powerhouses, while states like West Bengal, Uttar Pradesh, and Bihar have seen declines in their contributions to the national GDP and per capita income. West Bengal, which held a 10.5% share of GDP in 1960-61, has dropped to just 5.6%. The report suggests that these states need to adopt effective policies seen in the more successful regions to stimulate growth and attract investments, helping their large populations catch up with the rest of the country.
The recent report from the Prime Minister’s Economic Advisory Council highlights significant regional differences in development across India. This assessment, examining state performances from 1960 to 2023, reveals how various policies and programs have shaped growth trajectories, especially after the 1991 economic reforms.
One key finding is the remarkable growth in southern states following the removal of the license raj and liberalization, with states like Karnataka and Telangana emerging as economic powerhouses. In contrast, states like West Bengal, Uttar Pradesh, and Bihar have struggled to keep pace, leading to a notable decline in their contributions to the national GDP.
For instance, West Bengal’s share of the national GDP has drastically decreased from 10.5% in 1960-61 to just 5.6% in 2023-24. During this period, its per capita income, once above the national average, has fallen behind states like Rajasthan and Odisha. This decline has been attributed to inadequate economic policies during the long tenure of the Left Front government, which held power for over three decades.
Similarly, Uttar Pradesh’s contribution to the GDP has dropped from 14.4% to 9.5%, and Bihar’s from 7.8% to 4.3%. The report emphasizes that these declines were influenced by the political leadership’s failure to capitalize on opportunities presented by economic reforms.
On the other hand, southern states have successfully attracted investments, particularly in the IT sector. Cities like Bengaluru and Hyderabad have become global tech hubs due to favorable policies and infrastructure enhancements. The government’s ability to modernize and attract major international firms has propelled these states forward, contrasting sharply with the stagnation seen in U.P. and Bihar.
This report serves as a wake-up call for states lagging in development. By learning from the success stories of other regions, especially in the south and west, government leaders in U.P. and Bihar can create strategies aimed at fostering economic growth and attracting investment.
In conclusion, the country’s diverse regional development emphasizes the critical need for effective policy-making that can resonate with local economies. Addressing these disparities is essential for ensuring balanced growth and improved living standards across India.
Tags: India Development, Economic Reforms, Regional Disparities, Southern States Growth, West Bengal Decline, Uttar Pradesh, Bihar, IT Industry, Policy Making.
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What is the PMEAC report about?
The PMEAC report looks at India’s economy and suggests ways for different regions, like UP and Bihar, to grow. It highlights the need for these states to improve to catch up with the faster-growing South and West regions. -
Why do UP and Bihar need to catch up?
UP and Bihar have a lot of potential but are not growing as fast economically as places in the South and West. Catching up could create more jobs, improve living standards, and boost overall development. -
What areas should UP and Bihar focus on to improve?
The report suggests focusing on better education, better health services, improving infrastructure (like roads and electricity), and supporting farmers and local businesses. -
How can the state governments help in this process?
State governments can create better policies, invest in key areas, and encourage private businesses. They should also work with communities to understand their needs and make sure resources are used well. - What can individuals do to support growth in their states?
Individuals can participate in local governance, support local businesses, and invest in their education and skills. Being active in community development can also help improve conditions in their areas.
