Regional development policies

Abstract

The author has, in two earlier articles in this journal, reviewed policies relating to regional development in the Five-Year Plans and the experience with them, especially in relation to State levels of economic development and rates of economic. growth. The conclusions that emerged from this review were (i) that although reduction of regional disparities in development was a major objective of policies, the disparities continued to be large and had in all probability increased during the period of the first three Plans; and (ii) that a regional dichotomy in agricultural modernisation anid growth was perhaps emerging with the western and southern States of the country well on the way to steady modernisation and growth while the eastern and north-central States remained stagnant or progressed very slowly. In this paper are discussed three areas of regional development in which formulation of new policies, modification of existing policies or more effective implementation of policies are most needed: (i) development of backward regions, (ii) industrial location, and (iii) urban growth. India has reached a stage in its planning when formulation of comprehensive policies on the spatial location of economic activities and the spatial pattern of development has become essential. The need for such policy formulation is underscored by the growing regional development pressures which, if not satisfied, could seek expression in counter-productive activities; by the possibilities of large costs to the economy from wrong decisions on location of large projects, taken under regional pressures; and by the lack of adequate policies in the neglected areas of industrial location and urban growth. I IN two earlier articles in this journal we reviewed the policies relating to regional development in the Five-Year Plans and the experience with them, especially in relation to State levels of economic development and rates of economic growth. The review brought out that although reduction of regional disparities in development was a major objective of the policies, the disparities continued to be large and had in all probability increased during the period of the first three Plans. The second article pointed out that a regional dichotomy in agricultural modernisation and growth could be emerging with the