<<–2/”>a >p class=”cs40314EBF”>Steps taken by the Government to reduce it.
Regional imbalance is the disparity in economic and social development of two regions. One region/city/area is stronger than another region/city/area. Regions develop when investments are made to set up industries, service sectors, educational institutions, Health care facilities etc.
Income inequality is the unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the Percentage of income to a percentage of Population.
The problem of regional disparities is a global phenomenon and, for India, up to a great extent, an inheritance from the colonial past. For example, in India, the historical factors have guided the development of the port towns of Bombay, Madras, Calcutta and these three cities have in turn worked as nuclei for the development of Maharashtra and Gujarat, and Tamil Nadu and West Bengal respectively which are at present the most industrially advanced states in India. On the other hand, the areas having natural advantages in the form of mineral Resources, such as Bihar, Madhya Pradesh, Orissa and Rajasthan have lagged far behind in the process of Economic Development.
The most important indicator of regional imbalance and disparity among the different states of India is the difference in per capita state income figures. It is revealed from data in 2000-01, that the national Average per capita income in India was Rs. 10,254. The states whose per capita income figures were higher than this national average include Punjab, Goa, Haryana, Maharashtra, Gujarat, Karnataka, Tamil Nadu and Kerala.
Among these nine states, Punjab, Haryana, Maharashtra and Gujarat have attained a high degree of agricultural as well as industrial development. Although West Bengal and Karnataka attained per capita income higher than the all India average in 1094-95 but it started trailing behind the all India average in recent years due to its poor rate of economic Growth.
Various steps taken by Government to reduce it are:
1.Land reforms and Redistribution of Ceiling Surplus Land:
In India, income inequalities are mostly resulted from the concentration of agricultural land in the hands of a few big landlords. The Zamindary system prevailing in our country has created a system of absentee landlords in the farm sector who appropriated a major portion of the agricultural produce by exploiting the farmers.
After independence, various legislative measures were introduced for abolishing the system of absentee landlords and other intermediaries and imposing ceiling on land holdings.
2. Resource Transfer and Backwardness:
While making necessary award, the Finance Commission in India has been giving due weightage to backwardness of a state as an important criteria for resource transfer from the centre to the states.
Declaration of Backward states and special category states by the government to reduce the regional imbalances.
Under the present system of federal fiscal transfer, the transfer of resources from the Centre to States includes central assistance for State Plans, Non plan transfer as per the recommendations of the Finance Commission, ad-hoc transfer, allocation of fund for centrally sponsored schemes, allocation of both short-term and long-term credit from financial institutions etc.
The share of backward states along with special category states in the Plan outlay as well as in central assistance has been increasing steadily since the First Plan. Accordingly, the share of these states in the total plan outlay had increased from 46 per cent in the First Plan to 51 per cent in the Third Plan and then to 54 per cent in the Fifth Plan.
3. Special Area Development Programmes:
In order to develop hilly areas, tribal areas, drought- prone areas, specific plan schemes have been designed with full central assistance. Besides, other schemes of rural development formulated for the improvement of specific groups such as marginal farmers and agricultural laborers were implemented in the backward regions.
An area based approach of ‘Tribal Sub-Plans’ (TSPs) is now being implemented for the development of scheduled tribes located in the backward rural areas.
In this manner, different special schemes for particular target group located in the backward areas are being included for block level planning for attaining integrated rural development and considerable EMPLOYMENT opportunities. All these programmes include SFDA, MFAL, Drought Prone Area Programme (DPAP), Crash Scheme for Rural Employment (CSRE) etc.
4. Incentives for Promoting Investment in Backward Regions:
In order to fight the problem of industrial backwardness of some backward regions and also to promote private investment in backward regions, various fiscal and other incentives have been provided by both the Centre, the States and other financial institution under public sector.
5.Social Security Measures:
Social security measures for the workers are considered as an important step towards reduction of income inequalities. India has adopted some social security provisions for the workers engaged in the organized sector. Workmen’s Compensation Act for providing compensation in case of any injury to industrial workers, Maternity Benefit Act for Women workers and Employees
Provident Fund Act for providing the benefit of provident fund to the workers and other employees engaged in organized industries.
6. Employment Programme and Wage Policies:
With the growing menace of Unemployment problem in India, the Government of India has introduced some special employment programmes since the Fourth Plan onwards in order to provide some relief and scope for gainful employment to unemployed. These programmes include Crash Scheme for Rural Unemployment, the Drought Prone Areas Programme, Food for Work Programme, self-employment schemes for engineers, employment scheme for educated unemployment etc.
All these programmes were short lived and ad-hoc in nature. During the Sixth Plan period, the Integrated Rural Development Programme (IRDP) was initiated in 1978-79 and after that National Rural Employment Programme (NREP), Rural Landless Employment Guarantee Programme (RLEGP) were also introduced.
More radical socioeconomic reforms seem to be in the offing in India. These are some of the measures that can be adopted to reduce inequalities. But inequalities can be reduced, they cannot be eliminated altogether. In fact, absolute Equality is unattainable.
Additional Information
Recommendations
a. A composite criteria for identifying backward areas (with the Block as a unit) based on indicators of Human Development including POVERTY, Literacy and infant mortality rates, along with indices of social and economic Infrastructure-2/”>INFRASTRUCTURE, should be developed by the Planning Commission for the 12th Five Year Plan.
b. Union and State Governments should adopt a formula for Block-wise devolution of funds targeted at more backward areas.
c. Governance needs to be particularly strengthened in more backward areas within a State. The role of ‘special purpose vehicles’ such as backward area development boards and authorities in reducing intra-State disparities needs to be reviewed. It is advisable to strengthen local governments and make them responsible and accountable.
d. A system of rewarding States (including developed States) achieving significant reduction in intra-State disparities should be introduced.
e. Additional funds need to be provided to build core infrastructure at the inter-district level in less developed States and backward regions in such States. The quantum of assistance should be made proportionate to the number of people living in such areas.
f. The approach to all such funding should be outcome driven. The strategy should be to define acceptable minimum norms of human and Infrastructure Development that every block in the country should attain and funding should be driven by the consideration to achieve the norms so defined.
,
Regional imbalances and income inequality are two of the most pressing issues facing India today. Regional imbalances refer to the uneven distribution of economic activity and resources across different parts of the country, while income inequality refers to the gap between the rich and the poor. Both of these issues have a significant impact on the lives of Indians, and they are both major challenges for the Indian government.
India is a vast and diverse country, and there are significant regional disparities in terms of economic development. The states of Gujarat, Maharashtra, and Tamil Nadu are among the most developed states in the country, while the states of Bihar, Jharkhand, and Uttar Pradesh are among the least developed. These disparities are due to a number of factors, including historical factors, geography, and government policies.
Historical factors: The British colonial government favored certain regions of India over others, which led to the development of regional disparities. For example, the British built more railways in the western and southern parts of India than in the eastern and northern parts. This gave these regions an advantage in terms of economic development.
Geography: Some regions of India are more naturally endowed with resources than others, which gives them an advantage in terms of economic development. For example, the states of Gujarat and Maharashtra have a long coastline, which gives them an advantage in terms of Trade and Commerce.
Government policies: Some government policies have favored certain regions over others, which has contributed to regional disparities. For example, the government has invested more in infrastructure in the developed regions of the country than in the underdeveloped regions. This has helped to widen the gap between the rich and the poor.
Social factors: Social factors such as caste and religion can also contribute to regional disparities. For example, the upper castes are often more privileged than the lower castes, and they have better access to Education, healthcare, and employment opportunities.
Regional imbalances and income inequality have a number of negative consequences for India. These consequences include:
- Poverty: Regional imbalances and income inequality contribute to Poverty in India. The poor are often concentrated in the least developed regions of the country, and they have limited access to education, healthcare, and employment opportunities.
- Social unrest: Regional imbalances and income inequality can lead to social unrest. The poor are often frustrated with their lack of opportunities, and they may turn to violence or other forms of protest.
- Political instability: Regional imbalances and income inequality can also lead to political instability. The poor may lose faith in the government, and they may support radical or extremist groups.
The Indian government has implemented a number of policies to address regional imbalances and income inequality. These policies include:
- Investing in infrastructure: The government has invested in infrastructure in the least developed regions of the country. This has helped to improve the Quality Of Life in these regions and to attract investment.
- Providing subsidies: The government provides subsidies to the poor and to farmers. This helps to reduce poverty and to improve the standard of living of the poor.
- Promoting education: The government has promoted education in the least developed regions of the country. This has helped to improve the skills of the workforce and to attract investment.
- Promoting employment: The government has promoted employment in the least developed regions of the country. This has helped to reduce poverty and to improve the standard of living of the poor.
Despite these efforts, there is still much work to be done to address regional imbalances and income inequality in India. The government needs to continue to invest in infrastructure, education, and employment in the least developed regions of the country. It also needs to address the social factors that contribute to regional disparities, such as caste and religion. Only then will India be able to achieve its goal of Inclusive Growth.
What are the main regional imbalances in India?
India is a vast country with a diverse population and economy. As a result, there are significant regional imbalances in the country. Some of the most notable regional imbalances include:
- The gap between the rich and the poor is wider in some regions than others. For example, the Gini coefficient, which measures income inequality, is higher in states like Bihar and Jharkhand than in states like Kerala and Tamil Nadu.
- Some regions are more developed than others. For example, the states of Maharashtra and Gujarat have higher per capita incomes than the states of Uttar Pradesh and Bihar.
- Some regions have more Natural Resources than others. For example, the states of Odisha and Jharkhand have large deposits of coal and iron Ore, while the states of Kerala and Tamil Nadu have more fertile land.
What are the causes of regional imbalances in India?
There are a number of factors that contribute to regional imbalances in India. Some of the most important factors include:
- History: India is a country with a long history of regional differences. For example, the Mughal Empire was centered in the northern part of the country, while the British Raj was centered in the eastern part of the country. These historical differences have contributed to the current regional imbalances in India.
- Geography: India is a vast country with a diverse geography. Some regions, such as the Himalayas, are mountainous and difficult to develop. Other regions, such as the Ganges River basin, are more fertile and easier to develop. These geographical differences have contributed to the current regional imbalances in India.
- Policies: The Indian government has implemented a number of policies that have contributed to regional imbalances. For example, the government has invested heavily in the development of certain regions, such as the National Capital Region (NCR). This has led to faster economic growth in these regions than in other regions.
What are the consequences of regional imbalances in India?
Regional imbalances have a number of negative consequences for India. Some of the most important consequences include:
- Poverty: Regional imbalances contribute to poverty in India. The poorest states in India are also the states with the highest levels of regional imbalance.
- Inequality: Regional imbalances contribute to inequality in India. The richest states in India are also the states with the highest levels of regional imbalance.
- Conflict: Regional imbalances can contribute to conflict in India. For example, the Naxalite insurgency in central India is partly driven by regional imbalances.
- Environmental Degradation: Regional imbalances can contribute to environmental degradation in India. For example, the deforestation in the Himalayas is partly driven by the demand for timber from the more developed regions of India.
What can be done to address regional imbalances in India?
There are a number of things that can be done to address regional imbalances in India. Some of the most important things include:
- Investing in infrastructure: The Indian government needs to invest in infrastructure in the less developed regions of the country. This will help to improve the quality of life in these regions and attract investment.
- Promoting education: The Indian government needs to promote education in the less developed regions of the country. This will help to improve the skills of the workforce and make it easier for people to find jobs.
- Reducing Corruption: The Indian government needs to reduce corruption in the less developed regions of the country. This will help to improve the efficiency of government Services and attract investment.
- Empowering women: The Indian government needs to empower women in the less developed regions of the country. This will help to improve the status of women and reduce poverty.
These are just some of the things that can be done to address regional imbalances in India. It is important to note that there is no one-size-fits-all solution to this problem. The best approach will vary depending on the specific circumstances of each region.
Question 1
Which of the following is not a reason for regional imbalances in India?
(A) The Green Revolution was concentrated in a few states.
(B) The Industrial revolution bypassed many states.
(C) The government has not invested enough in infrastructure in all states.
(D) The population of some states is growing faster than others.
Answer
(D) The population of some states is growing faster than others. This is a reason for income inequality, but not for regional imbalances.
Question 2
Which of the following is not a reason for income inequality in India?
(A) The caste system.
(B) The gender pay gap.
(C) The rural-urban divide.
(D) The education gap.
Answer
(A) The caste system. The caste system is a social system that divides people into different groups based on their birth. It is not a reason for income inequality.
Question 3
Which of the following is the most effective way to reduce regional imbalances in India?
(A) The government should invest more in infrastructure in all states.
(B) The government should provide more subsidies to poor states.
(C) The government should encourage Migration from poor states to rich states.
(D) The government should promote economic growth in all states.
Answer
(D) The government should promote economic growth in all states. This is the most effective way to reduce regional imbalances because it will create jobs and opportunities in all parts of the country.
Question 4
Which of the following is the most effective way to reduce income inequality in India?
(A) The government should provide more subsidies to poor people.
(B) The government should increase the minimum wage.
(C) The government should invest more in education and healthcare.
(D) The government should promote affirmative action.
Answer
(C) The government should invest more in education and healthcare. This is the most effective way to reduce income inequality because it will give everyone the opportunity to succeed.
Question 5
Which of the following is not a consequence of regional imbalances in India?
(A) Poverty.
(B) Unemployment.
(C) Social unrest.
(D) Economic growth.
Answer
(D) Economic growth. Regional imbalances can actually lead to economic growth, as businesses may be attracted to areas with low costs and abundant labor. However, they can also lead to poverty, unemployment, and social unrest.