The Geography of Post-1991 Indian Economy

Abstract

The economic geography of India has been changing in line with a changing economy in the post-reform period. This paper uses sub-state-level (regional) data to study economic growth in the post-reform period. Using the latest available data (for the late nineties) at the sub-state level we find that a very clear break is observable between the eastern and western parts of India. That is, the western part of India has had an increase in its share in the economy as against the eastern part which has lost out during this period. Unlike others, this study covers all the 78 regions in 35 states of India. The smaller states that are generally left out in state-level studies are covered here. This allows us to generate a comprehensive picture of the geographical profile of India and how it is changing. We find some evidence that regions that have a predominantly natural resource-based economy are not growing as fast. We also find some evidence that regions that contain important river systems have not performed as well. Other issues are identified as well. This study finds that much more work is required and is possible with available data. It concludes by identifying a research agenda on the geographical profile of the post-reform Indian economy.