Hobby Research

Planning Perspective to Convergence

Convergence among Indian states has been a well-researched topic, and most economic literature on this topic suggests that Indian states have continued to diverge in their growth rates. From simple statistical measures such as variance to more complex models, divergence has only been increasing. Given the demands put forward by economically backward states such as Bihar and UP, I was curious whether our plan panel already allocates its resource in order to achieve equity. This paper first studies the impact of centrally planned expenditure on growth, and then the factors determining central plan allocation; especially whether the plan panel discriminates between states. To download the e-paper, click here.