Dangerous divergence

Growing regional inequality must be addressed

Economists have long argued the likelihood of “convergence” — in which similar economic units, such as states in a federal union, will eventually converge in output and related indicators. There has, in the past, been much evidence to support this, not least the notion that poorer countries and regions are capable of growing faster. However, in recent times Indian states have provided little evidence of convergence. Unless action is taken to address the degree of regional inequality in India, there is widespread concern that such inequality is now great enough to pose a major challenge to India’s unitary and federal