Regional and Social Development in India: Changing Policy Perspectives and Future Development Agenda

Abstract

An analysis of the trend and pattern of development in a developing country like India reveals that economic growth does not automatically result in reduction of regional imbalance. Furthermore, the absence of strong interdependence between indicators of economic and social development does not justify the optimism that social development will be guaranteed, if the economy grows rapidly, though it is true that there is a positive correlation between growth and the standard of resp. access to basic amenities at the regional level. The latter have, in turn, a positive impact on various sociodemographic factors. Similarly, educational indicators relate positively with social development. Unfortunately, however, they do not bear a similar relationship with economic growth. Strengthening the linkages between economic growth and education as well as basic amenities is, thus, likely to have a healthy impact on social development in less developed countries. This would be particularly important during the period of structural adjustment, expected to unleash market forces and accelerate economic growth. The empirical results in the paper, thus, make a case for designing a public intervention system and institutional structure to ensure regional and social balance in the process of economic growth.