Facebook Pixel Decoding state growth | Business Standard - newspaper - इस कहानी को Magzter.com पर पढ़ें
मैगज़्टर गोल्ड के साथ असीमित हो जाओ

मैगज़्टर गोल्ड के साथ असीमित हो जाओ

10,000 से अधिक पत्रिकाओं, समाचार पत्रों और प्रीमियम कहानियों तक असीमित पहुंच प्राप्त करें सिर्फ

$149.99
 
$74.99/वर्ष

कोशिश गोल्ड - मुक्त

Decoding state growth

Business Standard

|

May 02, 2025

Strengthening existing economic centres, rather than building greenfield cities, is key to faster state-level growth

- SHISHIR GUPTA & RISHITA SACHDEVA

Decoding state growth

Prime Minister Narendra Modi has given a clarion call for India to achieve developed country status by 2047. While there is near-unanimity that India's state governments will drive the future reform agenda, the jury is still out on what it takes to accelerate growth. Should states strengthen human or physical capital, or the quality of governance? Should they focus on existing cities or greenfield developments? And should all states pursue the same strategy?

An analysis of the gross domestic product (GDP) growth performance of 20 major Indian states over the past 30 years reveals two fundamental axes for accelerated state growth: Strong growth attributes and specialised key economic centres (KECs), or large cities. Nine growth attributes include physical capital, such as road density; social capital, such as gross enrolment in tertiary education; and quality of governance, such as labour market flexibility.

KECs are mainly defined as districts comprising million-plus urban agglomerations (UAs) as well as capital cities. These 58 KECs accounted for 30 per cent of India's GDP in 2000, which increased to about 35 per cent by 2020—indicating a faster growth trajectory. A few key messages emerge from this growth framework.

No one-size-fits-all growth strategy: Growth attributes serve as foundational elements, while KECs act as catalysts. Focusing only on state attributes may miss the binding constraints facing KECs, while singularly focusing on KECs is not desirable, since we find little evidence of isolated pockets of growth pulling up state growth meaningfully in an environment of weak growth attributes. States must determine their strategy based on their performance on these two fundamental axes.

Business Standard

यह कहानी Business Standard के May 02, 2025 संस्करण से ली गई है।

हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।

क्या आप पहले से ही ग्राहक हैं?

Business Standard से और कहानियाँ

Business Standard

NMP 2.0: Govt targets ₹ 16.7 trn

New targets

time to read

2 mins

February 24, 2026

Business Standard

Business Standard

Holdco discount, debt a drag on UPL recast

Restructuring fails to simplify overall structure: Brokerages

time to read

2 mins

February 24, 2026

Business Standard

Agentic AI remains top choice among courses at upGrad

Agentic artificial intelligence (AI) has emerged as the most soughtafter course at skilling platform up-

time to read

2 mins

February 24, 2026

Business Standard

Labour Min clears pilot project to auto-refund small balances in inoperative EPFO accounts

The Ministry of Labour and Employment has cleared a pilot project to automatically refund small balances from inoperative Employees’ Provident Fund Organisation (EPFO) accounts without requiring members to apply, said officials aware of the development.

time to read

2 mins

February 24, 2026

Business Standard

Hegseth to meet Anthropic CEO to discuss military use of Claude AI

US Defense Secretary Pete Hegseth has summoned artificial intelligence company Anthropic’s CEO Dario Amodei to the Pentagon on Tuesday for what is expected to be potentially tough talks over the military use of Anthropic’s Claude artificial intelligence tool, Axios reported on Monday, citing sources.

time to read

1 min

February 24, 2026

Business Standard

Basmati exporters demand separate board

As India negotiates a litany of trade deals, the %60,000 crore basmati rice segment is strongly pitching for a separate ‘Basmati Rice Board’ on the lines of the Tea and Coffee Boards to be carved out of the Agricultural and Processed Food Products Export Development Authority (Apeda).

time to read

2 mins

February 24, 2026

Business Standard

CDSCO tightens quality net with audits, scientific cadre overhaul

‘The Central Drugs Standard Control Organisation (CDSCO), India’s drug regulator, is reworking how it polices quality — not just by tightening inspections on the factory floor, but by fixing longstanding capacity gaps inside the regulator itself.

time to read

3 mins

February 24, 2026

Business Standard

Sebi may take up PMS rule overhaul at June board meet

The Securities and Exchange Board of India (Sebi) is planning a comprehensive review of the regulations governing portfolio managers, Chairman Tuhin Kanta Pandey (pictured) said on Monday, signalling tighter oversight and higher governance standards for the industry.

time to read

1 mins

February 24, 2026

Business Standard

Farhan Akhtar-backed Manipuri movie Boong wins Bafta award

Quirky Manipuri coming-of-age comedy-drama Boong, produced by Farhan Akhtar’s Excel Entertainment, won the prestigious British Academy Film and Television Arts (BAFTA) Award for Best Children’s & Family Film in London on Sunday.

time to read

1 min

February 24, 2026

Business Standard

Business Standard

'Chanakya' of Bengal politics dies at 71

Former railway minister Mukul Roy, once regarded as West Bengal Chief Minister Mamata Banerjee's most trusted lieutenant and the ‘Trinamool Congress’ (TMC) principal strategist, died of cardiac arrest at a private hospital early on Monday.

time to read

1 min

February 24, 2026

Listen

Translate

Share

-
+

Change font size