India’s growing federal fault lines
Inter-state disparities may set up a struggle between centrifugal and centripetal forces
In the year 1960, the per capita gross domestic product (GDP) of Maharashtra, then India’s richest state, was twice that of Bihar, the poorest. By the year 2014, the gulf between the richest state (now Kerala) and Bihar, still the poorest, had doubled. In a recent briefing paper, Vivek Dehejia and Praveen Chakravarty, two senior fellows at the think tank IDFC Institute—the former also a Mint columnist—have thrown into sharp relief India’s inter-state income disparity.
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