A more broad-based growth process will boost overall GDP in India, reduce regional disparities, and generate jobs where they are needed most
One of the striking features of India’s growth boom since the 1980s has been the concentration of economic activity in a handful of states. Roughly half of India’s gross domestic product (GDP) came from just five states then, as it does now. Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, and Gujarat accounted for 47% of the country’s output in 2018-19. The same set of states accounted for roughly the same share of the country’s output nearly four decades ago, in 1980-81.