Developmental gaps between Indian states pose challenges and opportunities
- In key areas like education, health and infrastructure, all states should aspire to catch up with the best. Beyond that, a state needs to prioritize reforms in areas where it is lagging.
The 1991 structural reforms, designed to transform India’s economic policy framework from a highly dirigiste system to a more liberalized, market-oriented system, mainly addressed the policy and regulatory framework at the national level. Much still remains to be done at that level. However, the next phase of reforms will have to be directed at reforms in the states. Structural reforms at this level have hardly been addressed, barring some piecemeal efforts in a few states.