Planning for Development of Backward Areas
Rohini Nayyar (2005)
CPRC-IIPA Working Paper
Planned development in India has been based on the notion of ensuring balanced regional development. Given the enormity and diversity of the country this was an important objective in the planning exercise. The devolution of funds to States was based on a formula that gave weightage to population and income levels in order to build in equity in central assistance to the States. Over time, we find that inequality between regions has grown rather than diminished. Even today the problem of uneven development in the country is a cause for concern. Therefore, the objective of balanced regional development continues to have primacy.