Social background of regional economic development disparities in India at the turn of millennium

Abstract

This study aims to examine the differences between the level of economic and social development of Indian regions at the turn of the millennium. The study explores two main questions. First, to what extent do social and human factors determine economic inequalities in a country deeply rooted in religious and cultural traditions? Which quantitative indicators can be used to grasp the correlation between social aspects and the level of economic development; and what factors could explain the causes of the differences? Second, can the level of economic development or can human and social aspects be related to higher regional inequalities?

The study explores the connection between some selected indicators of quality of life and per capita GDP in order to describe the level of economic development against the background of their correlation as found in literature and deduced from own analyses of empirical data. The focus is on whether a significant correlation can be shown between the level of regional economic development and certain human indicators (for example: educational level) for India, too, or if - with regard to other human indicators - a stronger correlation with the indicators of economic development is observable.

In the long run, an increased level of education and improved social conditions are essential for fostering and sustaining economic development. This is especially true in the case of a country like India where remarkable economic growth is principally based on a knowledge-driven industry in the field of modern info communication technologies (ICT, petrochemistry and other technological sectors). Are those regions characterised by a higher social development level the most developed regions of India in economic terms as well? In other words: Does a higher social development level generate economic development, or is it just the opposite? What are the underlying supporting facts for either of these hypotheses?