Give one evidence to show that the area is economically backward.
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Regional Imbalances in India: An Over View By Dr. S. Vijay Kumar Head & Professor (Associate) of Economics (Retd.), Kakatiya Government (UG&PG) College (NAAC “A” Grade), Kakatiya University, Warangal (Telangana State), Bharat Jyoti Awardee & Ex – Member, Board of Studies, Kakatiya University, Warangal – 506 009.
2. Meaning of Regional Imbalances & Objectives of the Study Meaning: Regional imbalances or disparities means wide differences in per capita income, literacy rates, health and education services, levels of industrialization, infrastructural facilities etc. between different regions. Regions may be either States or regions within a State. Objectives of the Study: • To study the need for Balanced Regional Development. • Review of Literature. • To study the Regional Imbalances in the Pre and Post - Reforms Periods. • Types of Disparities/Imbalances. • Indicators of Regional Imbalances in India. • To study the causes Regional Imbalances in India. • To study the consequences Regional Imbalances in India. • To suggest the remedies to reduce the Regional Imbalances in India. Methodology: The study is based on secondary data collected from Research Journals, News-papers, Books, Internet and Surveys of organizations etc.
3. Need for Balanced Regional Development: “Balanced regional development is the economic development of all regions simultaneously, raising their per capita income and living standards by exploiting their natural and human resources fully”. The policy of balanced regional development is considered on both economic, social and political grounds. Review of Literature: Global Theories of Regional Imbalances/Disparities: The Neo-Classical Theory of Convergence: The neo-classical school is a believer in market forces and flexible prices. Its perspective on regional developmental disparities is drawn from Solow’s growth model. One implication on Solow’s growth model is that the countries with different levels of per capita income over time tend to converge to one level of per capita income. The conclusion is based on the assumption that output per labor is subject to diminishing returns to capital per labor. By this assumption in developed countries with higher capital per labor, per capita income tends to grow at a slow rate than in developing countries which have lower capital per labor. Lack of unanimity of empirical support for the convergence hypothesis lead to emergence of several other theories. Gunnar Myrdal Theory
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