Answer:

Introduction:

India’s post-liberalization era has been marked by significant economic growth, but it also witnessed a growing divergence in growth rates and prosperity levels between states, leading to spatial inequality. 

Body:

Key Reasons for Rising Spatial Inequality:

• Disparities in Investment: Variations in private and public investments across states have led to uneven development.
• Diverse Geographical and Social Conditions: The diverse geography, demography, and social norms of Indian states contribute to different economic development levels.
• Impact of Economic Policies: Post-1991 liberalization policies might have accentuated existing regional disparities, especially through state-level policy initiatives.
• Income and Growth Disparities: A lack of convergence towards a common steady-state income level is evident, with rich states maintaining wealth and poor states struggling to catch up.
• Regional Variations in Economic Growth: While some states have seen accelerated growth, others, particularly those already lagging economically, have experienced a slowdown.

Policy Measures to Address Developmental Imbalance:

• Resource Transfers and Special Status: Central Government’s resource transfers, through Planning and Finance Commissions, including Special Category status, aim to address income disparities.
• Development Programs: Initiatives addressing basic needs and services, like the Drought Prone Areas Programme and community development programmes.
• Infrastructure Development in Lagging Areas: Projects like Narmada Dam and Ken-Betwa interlink project target industrial growth in backward regions.
• Promotion of Village and Small Industries: Fostering small industries in rural areas to stimulate local economic activities.
• Industrial Activity Diffusion and Infrastructure: Implementing public sector projects and providing incentives for investment in backward regions.
• Schemes for Backward Areas Development: The Backward Region Grant Fund and Pradhan Mantri Khanij Kshetra Kalyan Yojana focus on specific district-level developments.
• Competitive Federalism: Encouraging states to compete in attracting investment and trade, fostering administrative efficiency and development.

Conclusion:

Addressing India’s spatial inequality requires a multifaceted approach, including targeted policies for region-specific development, resource allocation, and infrastructure enhancement. Collaboration between central and state governments is crucial for implementing these policies and ensuring balanced and inclusive growth across all regions.