India 's regional disparities

Essay by mapxuiquachCollege, UndergraduateA, November 2014

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India's regional disparities and convergence

Class : Development Economics

Name: NGO Ngoc Tuan

ID: 11413023

India's economy hit a major turning point in 1990 when the government started the Economy Liberalization. Its effect is the significantly high economic growth when the GDP greatly rose from $316.9 (1990) to $1001 (2010), but along with that, it also brought about the increasing poverty and the widening income gap. After 1990, poverty, religious conflict, corruption, income inequality and regional disparity are the main problems facing India's economy while Bollywood and IT sector and software service became the highlight of India's economy. Speaking of India, we can relate to one country, China because of their similarity in population, their growth in GDP and several historical links. Despite having many things in common, they focused on different development paths. While China's main focus is manufacture and infrastructure, or in short : hardware, India excels in Service and technology : software.

So, because of those features, a tight partnership with strong potential is called Chindia.

In this report, I will expand my thought on the regional disparity in terms of literacy, economic distribution and healthcare sector and regional income convergence of India.

Up to 2011, India has seen an improvement in Literacy rate when it rose from 65.38% (2001) to 74.04% in 2011. The government has taken several measures to improve the literacy rate in rural areas, so by 2011, the gap between urban and rural areas has slightly declined, but the gap still remains relatively large with Kerala being the state with the highest literacy rate (94%), followed by Lakshadweep (92.3%) and Mizoram (91.06%) and lastly Bihar with the lowest literacy rate (64%). In spite of the government's providing free education programs to poor people living in rural areas, the amount of...