SlideShare ist ein Scribd-Unternehmen logo
1 von 21
Downloaden Sie, um offline zu lesen
Regional
   Imbalance
Business Environment| Sujeet Kumar
Topics to be covered
             •   Concept of Regional Imbalance
             •   Indicators of Regional Imbalance
             •   Causes of Regional Imbalance
             •   Measures to Remove Regional Imbalance
             •   Tenth and Eleventh Five year Plan and Regional
                 Imbalance
             •   Survey Report
             •   Review
Concept of Regional Imbalance
•   “The co-existence of relatively developed and economically
    depressed states and even regions within each state is known
    as Regional Imbalance.”
•   Regional imbalance may be;
     –   Natural
     –   Man made
     –   Inter-state or intra-sate,
     –   Total or sectorial,
•   “Economic Backwardness” of a region indicated by symptoms like
    high population pressure on land, excessive dependence on
    agriculture, absence of large-scale urbanization, low productivity in
    agriculture and cottage industries, etc.
Indicators of Regional Imbalance
•   Population
•   Per Capita Income
•   Growth Rate (Net State Domestic Product)
•   Infrastructure
•   Physical Quality of Life
     –   Infant Mortality Rate
     –   Literacy Rate
Indicators of Regional Imbalance
      •     Population
       Forward States          Population as
   (48% of Total Population)     per 2001
                                  census
Punjab                            2,43,58,999
Maharashtra                       9,67,52,247
Haryana                           2,11,44,564
Gujarat                           5,06,71,017
West Bengal                       8,01,76,197
Karnataka                         5,28,50,562
Kerala                            3,18,41,374
Tamil Nadu                        6,24,05,679
Andhra Pradesh                    7,62,10,007
       Backward States
   (42% of Total Population)
Madhya Pradesh                   6,03,85,118
Assam                            2,66,55,528
Uttar Pradesh                   16,60,52,859
Rajasthan                        5,64,73,122
Orissa                           3,68,04,660
Bihar                            8,29,98,509
Indicators of Regional Imbalance
•   Per Capita Income
                                             Per Capita Income
                         Forward States       at current prices   Rank
                                             (2005-2006) in Rs.
                        Punjab                      36759          3
                        Maharashtra                 37081          2
                        Haryana                     38832          1
                        Gujarat                     34157          4
                        West Bengal                 25223          9
                        Karnataka                   27291          7
                        Kerala                      30668          5
                        Tamil Nadu                  29958          6
                        Andhra Pradesh              26211          8
                                   Average         31798
                         Backward States
                        Madhya Pradesh             15647           3
                        Assam                      18598           6
                        Uttar Pradesh              13262           2
                        Rajasthan                  17863           5
                        Orissa (2004-2005)         16306           4
                        Bihar                       7875           1
                                   Average         14925
Indicators of Regional Imbalance
         •    Growth Rate (Net State Domestic Product)
                       Annual Average
 Forward States      Growth Rate 1990-91   Rank
                         to 2004-05
     Punjab                4.37%            11
    Maharastra             6.06%            4
     Haryana               5.37%            8
     Gujarat               6.79%            3
   West Bengal             6.88%            2
    Karnataka              6.91%            1
      Kerala               5.86%            5
   Tamil Nadu              5.26%            9
 Andhra Pradesh            5.65%            6
Backward States
 Madhya Pradesh            1.78%            14
     Assam                 3.18%            12
  Uttar Pradesh            2.79%            13
    Rajasthan              5.11%            10
Orissa (2004-2005)         5.52%            7
      Bihar                -0.99%           15
Indicators of Regional Imbalance
•   Infrastructure
                                              Infrastructure
                         Forward States       Development      Rank
                                                Index 1999
                        Punjab                     187.6        1
                        Maharashtra                112.8        6
                        Haryana                    137.5        4
                        Gujarat                    124.3        5
                        West Bengal                111.3        7
                        Karnataka                  104.9        8
                        Kerala                     178.7        2
                        Tamil Nadu                 149.1        3
                        Andhra Pradesh             103.3        9
                        Backward States
                        Madhya Pradesh            76.8          14
                        Assam                     77.7          13
                        Uttar Pradesh             101.2         10
                        Rajasthan                 75.9          15
                        Orissa                      81          12
                        Bihar                     81.3          11
                                  All India        100
Indicators of Regional Imbalance
  •    Physical Quality of Life
         –    Infant Mortality Rate

                     Infant Mortality
                           Rate
Forward States                          Rank
                     (per thousand)
                         in 2005
    Punjab                 44             4
 Maharashtra               36             2
    Haryana                60             9
    Gujarat                54             6
 West Bengal               55             7
  Karnataka                50             5
     Kerala                14             1
  Tamil Nadu               37             3
Andhra Pradesh             57             8
Madhya Pradesh             76            15
    Assam                  68            11
 Uttar Pradesh             73            13
   Rajasthan               68            11
     Orissa                75            14
     Bihar                 61            10
         All India         58
Indicators of Regional Imbalance
•   Physical Quality of Life
     –   Literacy Rate
                                                                  Literacy Rate (2001)

                               Forward States
                                                    Total   Rank    Male    Rank   Female   Rank

                                   Punjab           69.9      5      75.6    10     63.6      4
                                Maharashtra         77.3      2      86.3    2      67.5      2
                                   Haryana          68.6      7      79.3    5      56.3      8
                                   Gujarat           70       4      80.5    4      58.6      6
                                West Bengal         69.2      6      77.6    6      60.2      5
                                 Karnataka           67       8      76.3    9      57.5      7
                                    Kerala          90.9      1      94.2    1      87.9      1
                                 Tamil Nadu         73.5      3      82.3    3      64.6      3
                               Andhra Pradesh       61.1     12      70.8    13     51.2     10
                               Madhya Pradesh       64.1     10      76.8    7      50.3     12
                                   Assam            64.3      9      71.9    12      56       9
                                Uttar Pradesh       57.4     14      70.2    14      43      14
                                  Rajasthan          61      13      76.5    8      44.3     13
                                    Orissa          63.6     11      75.4    11      51      11
                                    Bihar           47.5     15      60.3    15     33.6     15
                                        All India   65.4              76            54.3
Causes of Regional Imbalance
•   There are certain deterrent factors which come in the way of rapid
    development of a region; most important of them are:
     –   Geographical Isolation,
     –   Inadequacy of economic overheads like transport, labour, technology, etc
•   Pre-independence period
•   Post-independence period
•   Geographical Factors
•   Locational Preferences
Measures to Remove Regional Imbalance




General Measures:
   – transfer of financial resources from the Centre to the states.
   – Special area development programs
   – Measures to promote private investment.
Measures to Remove Regional Imbalance
•   Backwardness and Resource Transfer
                                    Total        Total assistance   Percentage of
                               assistance in      to Backward       Assistance of
              Plans
                               all states (Rs.     States (Rs.       Backward
                                    Crore)            Crore)           States
        Sixth Plan(1980-85)        16560               7590             46%
      Seventh Plan (1985-90)       31420              13200             42%
       Eighth Plan(1992-97)        93830              35160             37%
      Ninth Plan (1997-2002)      185260              69990             38%
       Tenth Plan (2002-07)       254100              91080             36%
Measures to Remove Regional Imbalance




•   Special Area Development Program
    – Specific Plan schemes to develop-prone areas
    – The Eleventh finance Commission identified criterion for resource
      transfer,
        •   the relative distance of the per capita income of the state with the income of the state with highest per capita
            income
        •   index of infrastructure development
        •   On the basis of new formula, backward states and special category states, taken together would receive
            61.2% of total resource transfer.
Measures to Remove Regional Imbalance



•   Initiative to promote investment in backward areas
    – Central Government Incentives:
              –   Income Tax Concession:
              –   Central Investment Subsidy Scheme:
              –   Transport Subsidy Scheme:

    – State Government Incentives:
              –   Provision for developed plots with water and power with no-profit and no-loss basis
              –   Exemption from payment of water charges for some year
              –   Interest fee loans on sales tax dues
              –   Exemption from payment of property taxes for some years
              –   Monetary Assistance from State Financial Corporation, State Industrial Development Corporation
                  (SIDCO) etc.

    – Concessional Finance by major financial institutions:
              –   A lower rate of interest on rupee loans (9.5% as against 11.5%),
              –   A longer period of repayment (generally 15 to 20 years, as against 10 to 12 years),
              –   Participation in the risk capital or debenture issues,
              –   Charging only half the normal rate of underwriting commission, waving of commitment charges, etc.
Tenth and Eleventh Five Year Plan and
    Regional Disparities


•   Tenth Five year plan for less developed States
     –   High level of Capital investment
     –   Initiative towards the better governance and institutional reforms to make the
         targeted investment effective.
     –   Rashtriya Sam Vikas Yojana- RSVY (national Equal Development Plan) to support
         the development initiatives in backward states and regions.
•   Eleventh Five year plan for less developed States
     –   Pradhan Mantri Gram Swaranjayanti Swarozgar Yojana (PMGSY)
     –   Indira Awas Yojana
     –   National Rural Health Mission (NRHM)
     –   Sarv Shiksha Abhiyan
     –   Supplementary nutrition program
Survey Report
                  •    North: Racing up


                                               Northern Zone
                Overall             Consumer    Primary    Law &   Primary                               Budget &
                 Rank Agriculture    Markets   Education   Order   Health    Infrastructure Investment   Prosperity
    Delhi         1        3           2           4         4        1             1            2           2
 Chandigarh       2        4           1           2         1        8             4            1           1
   Punjab         3        1           3           5         6        4             2            4           3
  Himachal
   Pradesh        4        8           4          1          2       2             3           3             4
   Haryana        5        2           5          7          5       7             5           5             5
 Uttrakhand       6        7           7          3          8       5             7           6             7
  Jammu &
   Kashmir        7        9           6          6          7       3             6           8             6
 Rajasthan        8        6           8          8          3       6             8           7             8
Uttar Pradesh     9        5           9          9          9       9             9           9             9
Survey Report
               •        East: Depressing


                                                Eastern zone
               Overall             Consumer  Primary   Law &   Primary                             Budget &
                       Agriculture                                     Infrastructure Investment
                Rank                Markets Education Order    Health                              Prosperity
  Mizoram        1          7         2         2         1       3           2            1           1
   Sikkim        2          9         3         1         3       1           3            5           5
 Arunachal
                   3        10       4         7        11        4          5            2            2
  Pradesh
 Nagaland           4       11       1          3       7        5           8            3           3
  Manipur           5        4       9          4       12       2           7           10           6
  Tripura           6        5       6          5       9        7           12           8           4
   Assam            7       12       8          8       5        9           6            6           9
Meghyalaya          8        6       5          6       13       6           11           4           7
West Bengal         9        1       7         10       6        8           1           12           10
Chhattisgarh       10        8      10         11       2        12          9            7           8
   Orissa          11        3      12          9       4        10          4           11           12
 Jharkhand         12       13      11         12       8        11          13           9           11
    Bihar          13        2      13         13       10       13          10          13           13
Survey Report
         •     South: Stalling



                                          Southern Zone
             Overall           Consumer     Primary    Law & Primary                          Budget &
              Rank Agriculture Markets     Education   Order Health Infrastructure Investment Prosperity
Puducherry     1        1         1            3         2      7          6            1         1
Tamil Nadu     2        2         5            5         4      1          2            2         4
   Kerala      3        7         4            4         1      2          1            5         5
Andaman &
  Nicobar      4        6         2           2          3       5          5           7         3
 Karnataka     5        5         6           6          5       3          3           3         6
Lakshadwee
     p         6        3         3           1          6       6          7           6         2
  Andhra
  Pradesh      7        4         7           7          7       4          4           4         7
Survey Report
           •     West: Stagnant



                                            Western Zone
                 Overall           Consumer Primary Law & Primary                             Budget &
                  Rank Agriculture Markets Education Order Health Infrastructure Investment   Prosperity
     Goa           1        1         1        1       4     1           2            1           1
    Gujarat        2        2         5        5       2     4           3            3           4
  Maharastra       3        3         4        3       3     2           1            4           5
 Daman & Diu       4        5         2        2       5     6           5            2           2
 Dadar & Nagar
    Haveli         5       6         3          4       6       3         6          5            3
Madhya Pradesh     6       4         6          6       1       5         4          6            6
Review



•   Regional Disparities hinder the national development
•   Overall development of the states can bring the better future and
    prospects
•   Identification of the lagers and the concerned area is very vital for
    the removal of disparities
•   A well developed planning and strategy can remove the disparities
•   Resource transfer is an important weapon to fight against the
    regional disparities.

Weitere ähnliche Inhalte

Was ist angesagt?

Gunnar myrdal presentation
Gunnar myrdal presentationGunnar myrdal presentation
Gunnar myrdal presentationHarsha Aswani
 
Achievements and failures of indian economic planning
Achievements and failures of indian economic planningAchievements and failures of indian economic planning
Achievements and failures of indian economic planninganita rani
 
Theory of unbalanced_growth
Theory of unbalanced_growthTheory of unbalanced_growth
Theory of unbalanced_growthmaya0311
 
Theories of economic growth
Theories of economic growthTheories of economic growth
Theories of economic growthVaibhav verma
 
Public sector its role, performance and reforms
Public sector its role, performance and  reformsPublic sector its role, performance and  reforms
Public sector its role, performance and reformsMahendra Kumar Ghadoliya
 
The big push theory
The big push theoryThe big push theory
The big push theoryAnjali Singh
 
Characteristics of indian economy
Characteristics of indian economyCharacteristics of indian economy
Characteristics of indian economykarthikgangula
 
inter-regional-variations-in-india.ppt
inter-regional-variations-in-india.pptinter-regional-variations-in-india.ppt
inter-regional-variations-in-india.pptNidhi Bansal
 
Mills theory of reciprocal demand
Mills theory of reciprocal demandMills theory of reciprocal demand
Mills theory of reciprocal demandVIMLA CHOUDHARY
 
Monetary and fiscal policy of india ppt (1)
Monetary and fiscal policy of india ppt (1)Monetary and fiscal policy of india ppt (1)
Monetary and fiscal policy of india ppt (1)kamal ega
 
Main objectives of fiscal policy in india ↓
Main objectives of fiscal policy in india ↓Main objectives of fiscal policy in india ↓
Main objectives of fiscal policy in india ↓hiten91
 
Wto and its impact on indian economy
Wto and its impact on indian economyWto and its impact on indian economy
Wto and its impact on indian economykenalpatel
 
Public economics unit 3 public expenditure and public debt
Public economics unit   3 public expenditure and public debtPublic economics unit   3 public expenditure and public debt
Public economics unit 3 public expenditure and public debtNishali Balasingh
 
Measurement of economic development
Measurement of economic developmentMeasurement of economic development
Measurement of economic developmentTintoTom2
 

Was ist angesagt? (20)

Indian economy 1
Indian economy 1Indian economy 1
Indian economy 1
 
Gunnar myrdal presentation
Gunnar myrdal presentationGunnar myrdal presentation
Gunnar myrdal presentation
 
Achievements and failures of indian economic planning
Achievements and failures of indian economic planningAchievements and failures of indian economic planning
Achievements and failures of indian economic planning
 
Theory of unbalanced_growth
Theory of unbalanced_growthTheory of unbalanced_growth
Theory of unbalanced_growth
 
Theories of economic growth
Theories of economic growthTheories of economic growth
Theories of economic growth
 
Public sector its role, performance and reforms
Public sector its role, performance and  reformsPublic sector its role, performance and  reforms
Public sector its role, performance and reforms
 
The big push theory
The big push theoryThe big push theory
The big push theory
 
Characteristics of indian economy
Characteristics of indian economyCharacteristics of indian economy
Characteristics of indian economy
 
Rural – urban migration
Rural – urban migrationRural – urban migration
Rural – urban migration
 
inter-regional-variations-in-india.ppt
inter-regional-variations-in-india.pptinter-regional-variations-in-india.ppt
inter-regional-variations-in-india.ppt
 
Mills theory of reciprocal demand
Mills theory of reciprocal demandMills theory of reciprocal demand
Mills theory of reciprocal demand
 
Economics:Public Debt
Economics:Public  DebtEconomics:Public  Debt
Economics:Public Debt
 
Monetary and fiscal policy of india ppt (1)
Monetary and fiscal policy of india ppt (1)Monetary and fiscal policy of india ppt (1)
Monetary and fiscal policy of india ppt (1)
 
Main objectives of fiscal policy in india ↓
Main objectives of fiscal policy in india ↓Main objectives of fiscal policy in india ↓
Main objectives of fiscal policy in india ↓
 
Wto and its impact on indian economy
Wto and its impact on indian economyWto and its impact on indian economy
Wto and its impact on indian economy
 
Liberalization
LiberalizationLiberalization
Liberalization
 
Public economics unit 3 public expenditure and public debt
Public economics unit   3 public expenditure and public debtPublic economics unit   3 public expenditure and public debt
Public economics unit 3 public expenditure and public debt
 
International Economics: Introduction
International Economics: IntroductionInternational Economics: Introduction
International Economics: Introduction
 
Measurement of economic development
Measurement of economic developmentMeasurement of economic development
Measurement of economic development
 
Terms of-trade
Terms of-tradeTerms of-trade
Terms of-trade
 

Ähnlich wie 35541086 regional-imbalance

Features of Indian Economy
Features of Indian EconomyFeatures of Indian Economy
Features of Indian EconomyDeep Das
 
State+bank+of+india
State+bank+of+indiaState+bank+of+india
State+bank+of+indiaAmit
 
38584005 state-bank-of-india-sbi
38584005 state-bank-of-india-sbi38584005 state-bank-of-india-sbi
38584005 state-bank-of-india-sbiAmit
 
West Bengal Economic analysis
West Bengal Economic analysisWest Bengal Economic analysis
West Bengal Economic analysisSantosh Garbham
 
Literacy rate 2011 the onlinegk
Literacy rate 2011   the onlinegkLiteracy rate 2011   the onlinegk
Literacy rate 2011 the onlinegkRajesh Ahuja
 

Ähnlich wie 35541086 regional-imbalance (6)

Features of Indian Economy
Features of Indian EconomyFeatures of Indian Economy
Features of Indian Economy
 
State+bank+of+india
State+bank+of+indiaState+bank+of+india
State+bank+of+india
 
38584005 state-bank-of-india-sbi
38584005 state-bank-of-india-sbi38584005 state-bank-of-india-sbi
38584005 state-bank-of-india-sbi
 
Banaskantha - District Profile
Banaskantha - District ProfileBanaskantha - District Profile
Banaskantha - District Profile
 
West Bengal Economic analysis
West Bengal Economic analysisWest Bengal Economic analysis
West Bengal Economic analysis
 
Literacy rate 2011 the onlinegk
Literacy rate 2011   the onlinegkLiteracy rate 2011   the onlinegk
Literacy rate 2011 the onlinegk
 

35541086 regional-imbalance

  • 1. Regional Imbalance Business Environment| Sujeet Kumar
  • 2. Topics to be covered • Concept of Regional Imbalance • Indicators of Regional Imbalance • Causes of Regional Imbalance • Measures to Remove Regional Imbalance • Tenth and Eleventh Five year Plan and Regional Imbalance • Survey Report • Review
  • 3. Concept of Regional Imbalance • “The co-existence of relatively developed and economically depressed states and even regions within each state is known as Regional Imbalance.” • Regional imbalance may be; – Natural – Man made – Inter-state or intra-sate, – Total or sectorial, • “Economic Backwardness” of a region indicated by symptoms like high population pressure on land, excessive dependence on agriculture, absence of large-scale urbanization, low productivity in agriculture and cottage industries, etc.
  • 4. Indicators of Regional Imbalance • Population • Per Capita Income • Growth Rate (Net State Domestic Product) • Infrastructure • Physical Quality of Life – Infant Mortality Rate – Literacy Rate
  • 5. Indicators of Regional Imbalance • Population Forward States Population as (48% of Total Population) per 2001 census Punjab 2,43,58,999 Maharashtra 9,67,52,247 Haryana 2,11,44,564 Gujarat 5,06,71,017 West Bengal 8,01,76,197 Karnataka 5,28,50,562 Kerala 3,18,41,374 Tamil Nadu 6,24,05,679 Andhra Pradesh 7,62,10,007 Backward States (42% of Total Population) Madhya Pradesh 6,03,85,118 Assam 2,66,55,528 Uttar Pradesh 16,60,52,859 Rajasthan 5,64,73,122 Orissa 3,68,04,660 Bihar 8,29,98,509
  • 6. Indicators of Regional Imbalance • Per Capita Income Per Capita Income Forward States at current prices Rank (2005-2006) in Rs. Punjab 36759 3 Maharashtra 37081 2 Haryana 38832 1 Gujarat 34157 4 West Bengal 25223 9 Karnataka 27291 7 Kerala 30668 5 Tamil Nadu 29958 6 Andhra Pradesh 26211 8 Average 31798 Backward States Madhya Pradesh 15647 3 Assam 18598 6 Uttar Pradesh 13262 2 Rajasthan 17863 5 Orissa (2004-2005) 16306 4 Bihar 7875 1 Average 14925
  • 7. Indicators of Regional Imbalance • Growth Rate (Net State Domestic Product) Annual Average Forward States Growth Rate 1990-91 Rank to 2004-05 Punjab 4.37% 11 Maharastra 6.06% 4 Haryana 5.37% 8 Gujarat 6.79% 3 West Bengal 6.88% 2 Karnataka 6.91% 1 Kerala 5.86% 5 Tamil Nadu 5.26% 9 Andhra Pradesh 5.65% 6 Backward States Madhya Pradesh 1.78% 14 Assam 3.18% 12 Uttar Pradesh 2.79% 13 Rajasthan 5.11% 10 Orissa (2004-2005) 5.52% 7 Bihar -0.99% 15
  • 8. Indicators of Regional Imbalance • Infrastructure Infrastructure Forward States Development Rank Index 1999 Punjab 187.6 1 Maharashtra 112.8 6 Haryana 137.5 4 Gujarat 124.3 5 West Bengal 111.3 7 Karnataka 104.9 8 Kerala 178.7 2 Tamil Nadu 149.1 3 Andhra Pradesh 103.3 9 Backward States Madhya Pradesh 76.8 14 Assam 77.7 13 Uttar Pradesh 101.2 10 Rajasthan 75.9 15 Orissa 81 12 Bihar 81.3 11 All India 100
  • 9. Indicators of Regional Imbalance • Physical Quality of Life – Infant Mortality Rate Infant Mortality Rate Forward States Rank (per thousand) in 2005 Punjab 44 4 Maharashtra 36 2 Haryana 60 9 Gujarat 54 6 West Bengal 55 7 Karnataka 50 5 Kerala 14 1 Tamil Nadu 37 3 Andhra Pradesh 57 8 Madhya Pradesh 76 15 Assam 68 11 Uttar Pradesh 73 13 Rajasthan 68 11 Orissa 75 14 Bihar 61 10 All India 58
  • 10. Indicators of Regional Imbalance • Physical Quality of Life – Literacy Rate Literacy Rate (2001) Forward States Total Rank Male Rank Female Rank Punjab 69.9 5 75.6 10 63.6 4 Maharashtra 77.3 2 86.3 2 67.5 2 Haryana 68.6 7 79.3 5 56.3 8 Gujarat 70 4 80.5 4 58.6 6 West Bengal 69.2 6 77.6 6 60.2 5 Karnataka 67 8 76.3 9 57.5 7 Kerala 90.9 1 94.2 1 87.9 1 Tamil Nadu 73.5 3 82.3 3 64.6 3 Andhra Pradesh 61.1 12 70.8 13 51.2 10 Madhya Pradesh 64.1 10 76.8 7 50.3 12 Assam 64.3 9 71.9 12 56 9 Uttar Pradesh 57.4 14 70.2 14 43 14 Rajasthan 61 13 76.5 8 44.3 13 Orissa 63.6 11 75.4 11 51 11 Bihar 47.5 15 60.3 15 33.6 15 All India 65.4 76 54.3
  • 11. Causes of Regional Imbalance • There are certain deterrent factors which come in the way of rapid development of a region; most important of them are: – Geographical Isolation, – Inadequacy of economic overheads like transport, labour, technology, etc • Pre-independence period • Post-independence period • Geographical Factors • Locational Preferences
  • 12. Measures to Remove Regional Imbalance General Measures: – transfer of financial resources from the Centre to the states. – Special area development programs – Measures to promote private investment.
  • 13. Measures to Remove Regional Imbalance • Backwardness and Resource Transfer Total Total assistance Percentage of assistance in to Backward Assistance of Plans all states (Rs. States (Rs. Backward Crore) Crore) States Sixth Plan(1980-85) 16560 7590 46% Seventh Plan (1985-90) 31420 13200 42% Eighth Plan(1992-97) 93830 35160 37% Ninth Plan (1997-2002) 185260 69990 38% Tenth Plan (2002-07) 254100 91080 36%
  • 14. Measures to Remove Regional Imbalance • Special Area Development Program – Specific Plan schemes to develop-prone areas – The Eleventh finance Commission identified criterion for resource transfer, • the relative distance of the per capita income of the state with the income of the state with highest per capita income • index of infrastructure development • On the basis of new formula, backward states and special category states, taken together would receive 61.2% of total resource transfer.
  • 15. Measures to Remove Regional Imbalance • Initiative to promote investment in backward areas – Central Government Incentives: – Income Tax Concession: – Central Investment Subsidy Scheme: – Transport Subsidy Scheme: – State Government Incentives: – Provision for developed plots with water and power with no-profit and no-loss basis – Exemption from payment of water charges for some year – Interest fee loans on sales tax dues – Exemption from payment of property taxes for some years – Monetary Assistance from State Financial Corporation, State Industrial Development Corporation (SIDCO) etc. – Concessional Finance by major financial institutions: – A lower rate of interest on rupee loans (9.5% as against 11.5%), – A longer period of repayment (generally 15 to 20 years, as against 10 to 12 years), – Participation in the risk capital or debenture issues, – Charging only half the normal rate of underwriting commission, waving of commitment charges, etc.
  • 16. Tenth and Eleventh Five Year Plan and Regional Disparities • Tenth Five year plan for less developed States – High level of Capital investment – Initiative towards the better governance and institutional reforms to make the targeted investment effective. – Rashtriya Sam Vikas Yojana- RSVY (national Equal Development Plan) to support the development initiatives in backward states and regions. • Eleventh Five year plan for less developed States – Pradhan Mantri Gram Swaranjayanti Swarozgar Yojana (PMGSY) – Indira Awas Yojana – National Rural Health Mission (NRHM) – Sarv Shiksha Abhiyan – Supplementary nutrition program
  • 17. Survey Report • North: Racing up Northern Zone Overall Consumer Primary Law & Primary Budget & Rank Agriculture Markets Education Order Health Infrastructure Investment Prosperity Delhi 1 3 2 4 4 1 1 2 2 Chandigarh 2 4 1 2 1 8 4 1 1 Punjab 3 1 3 5 6 4 2 4 3 Himachal Pradesh 4 8 4 1 2 2 3 3 4 Haryana 5 2 5 7 5 7 5 5 5 Uttrakhand 6 7 7 3 8 5 7 6 7 Jammu & Kashmir 7 9 6 6 7 3 6 8 6 Rajasthan 8 6 8 8 3 6 8 7 8 Uttar Pradesh 9 5 9 9 9 9 9 9 9
  • 18. Survey Report • East: Depressing Eastern zone Overall Consumer Primary Law & Primary Budget & Agriculture Infrastructure Investment Rank Markets Education Order Health Prosperity Mizoram 1 7 2 2 1 3 2 1 1 Sikkim 2 9 3 1 3 1 3 5 5 Arunachal 3 10 4 7 11 4 5 2 2 Pradesh Nagaland 4 11 1 3 7 5 8 3 3 Manipur 5 4 9 4 12 2 7 10 6 Tripura 6 5 6 5 9 7 12 8 4 Assam 7 12 8 8 5 9 6 6 9 Meghyalaya 8 6 5 6 13 6 11 4 7 West Bengal 9 1 7 10 6 8 1 12 10 Chhattisgarh 10 8 10 11 2 12 9 7 8 Orissa 11 3 12 9 4 10 4 11 12 Jharkhand 12 13 11 12 8 11 13 9 11 Bihar 13 2 13 13 10 13 10 13 13
  • 19. Survey Report • South: Stalling Southern Zone Overall Consumer Primary Law & Primary Budget & Rank Agriculture Markets Education Order Health Infrastructure Investment Prosperity Puducherry 1 1 1 3 2 7 6 1 1 Tamil Nadu 2 2 5 5 4 1 2 2 4 Kerala 3 7 4 4 1 2 1 5 5 Andaman & Nicobar 4 6 2 2 3 5 5 7 3 Karnataka 5 5 6 6 5 3 3 3 6 Lakshadwee p 6 3 3 1 6 6 7 6 2 Andhra Pradesh 7 4 7 7 7 4 4 4 7
  • 20. Survey Report • West: Stagnant Western Zone Overall Consumer Primary Law & Primary Budget & Rank Agriculture Markets Education Order Health Infrastructure Investment Prosperity Goa 1 1 1 1 4 1 2 1 1 Gujarat 2 2 5 5 2 4 3 3 4 Maharastra 3 3 4 3 3 2 1 4 5 Daman & Diu 4 5 2 2 5 6 5 2 2 Dadar & Nagar Haveli 5 6 3 4 6 3 6 5 3 Madhya Pradesh 6 4 6 6 1 5 4 6 6
  • 21. Review • Regional Disparities hinder the national development • Overall development of the states can bring the better future and prospects • Identification of the lagers and the concerned area is very vital for the removal of disparities • A well developed planning and strategy can remove the disparities • Resource transfer is an important weapon to fight against the regional disparities.