Key Points
However, the next phase of reforms will have to be directed at reforms in the states..
It is important to note in this context that there are very large differences in levels of development across Indian states, in some ways larger differences than those among different countries of Europe..
Even if we exclude small states like Goa and Delhi as special cases, huge gaps remain, Haryanas per capita income is five times that of Bihar. . Per capita income by itself is an inadequate measure of development, but similar large differences are seen in levels of social development and infrastructure services as well..
These large inter-state differences in levels of social and economic development are both a challenge and an opportunity. They are a challenge because they point to the huge distance which some of these states have to travel, especially the so-called BIMARU states of Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan, UP and Uttarakhand, for India to achieve its aspirational goal of becoming a developed country by 2050, i.e., within a hundred years after independence from colonial rule..
The difficulty with this approach in the international context is that often there are large differences in historical legacy or the prevailing developmental ecosystems across countries which make lessons from such inter-country comparisons infructuous..
