Disparities in infrastructure as a barrier to attain faster inclusive growth trajectory: an inter-state analysis

Abstract

The present paper attempts to explore and examine the relationship between disparity in infrastructure and its relationship with Per-Capita Income (PCNSDP) across 15 major states of India from 1966–67 to 2011–12. The estimated results reveal that, there is a significant and positive relationship between infrastructure development to economic development as measured by per capita income of state. Higher infrastructure development leads to higher development for instance in Kerala, Punjab, AP, Tamil Nadu, Gujarat, Haryana and Maharashtra states. Poor infrastructure development supporting to the bigger levels poverty ratio, the deprivation of productivity and standard of living etc., for example in Bihar, UP,. MP, Assam, Rajasthan and Orissa. The states with lagged Infrastructure facilities facing acute crunch of basic amenities as compared to better infrastructure developed states, which in turn to leads rising socio-economic disparities across the states. Therefore deficit in the infrastructure is the major hurdle for the attaining inclusive growth. Following from this, to attaining growth with inclusiveness in income and non-income indices, reduction of infrastructure disparities across the sectors, sections and regions in the state and across the states in India should be accorded top priority.