Understanding The Regional Economic Growth and Sectoral Convergence in India: A Base Year Analysis

Abstract

The This study will analyse a comprehensive overview of the research to investigate regional disparities and convergence in various sectors and sub-sectors of the Indian regions. It aims to determine whether Indian regions experienced absolute and sigma convergence or divergence during this period. It considers six base year series from 1970 to 2020 to understand the structural change. The study utilises a base year analysis approach, employing economic indicators and data from multiple sources such as EPWRF, RBI’s Data Warehouse, CMIE states of India, and reports. The Key economic indicators considered include the Net domestic product (NDP) at a constant price, per capita income, sectoral contributions, investment patterns, and human development indices. Furthermore, the study employs various statistical techniques and econometric models to assess the degree of economic convergence among Indian states and regions. In addition, the Log-Lin Model is used to analyses the CAGR. The study uses the Sample Regression Function to measure absolute convergence or divergence. However, given this framework, the research investigates the historical context of Indian economic growth and development, highlighting major policy reforms and financial initiatives. It explores how it affected regional economies and contributed to either convergence or divergence.