Convergence or Divergence Among Indian States: A Study Of New Series Data

Abstract

Till now there is a vast literature available on this subject both theoretically and empirically.  All the studies are mostly observing this convergence/divergence nature over a long period of time.  To quote some of the researches such as Trivedi (2002), Bandyopadhyay (2002), Michelle, Kirsty and Cassen (2005), Nayyar (2008), Kalra & Sodsriwiboon (2010), Ghosh (2012), Stewart and Moslares (2014), Mishra and Mishra (2017) and Chakraborty and Chakraborty (2018) all are considered long period of time to estimate the presence of convergence/divergence among Indian states. But the long term development of a region depends upon so many factors such as availability of natural resources, human resources, economic policies adopted in the region, political climate etc.  Hence, when we are dealing with the issue of convergence/divergence we have to consider the above-said factors.  From this point of view, this paper focuses on the short term observing of convergence/divergence particularly with reference to Indian states during the period 2011-12 to 2016-17.  High Growth Group States witnessed convergence in PCNSDP while Low Growth Group States and the Total States exhibited divergent trends. The high Growth Group States converged at a rate of 49.8 per cent during the study period.  The rate of divergence among the Low Growth Group States is 14.5 per cent.  Regarding the Total States, the rate of divergence is observed as 12.4 per cent.  Here also the high growth group states are accounted for fewer fluctuations when compared with low growth group states.