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ESSENTIALS OF BUSINESS

ENVIRONMENT

Chapter 28

BALANCED REGIONAL

DEVELOPMENT



Himalaya Publishing HouseEssentials of Business Environment

K. Aswathappa

Chapter 28

Balanced Regional

Development Learning Objectives

Determine criteria for backwardness

Point out the reasons for regional imbalances

Appreciate the extent of regional imbalances

Suggest remedies to remove regional disparities

Understand why regional planning has failed and

suggest ways of making it successful




K. Aswathappa

Chapter 28

Balanced Regional

Development

Criteria for Backwardness

(a) High Population Density Areas in the Gangetic Plains: These areas have a high

potential for agricultural production but the potential is not fully exploited with the

result agricultural yield rate tends to be low. There is heavy pressure on land

due to the high density of population. The debt bondage to lands and

moneylenders is quite high.

(b) Areas With Exceptionally Low Agricultural Productivity : Mostly found in Central

and Western India, these areas fall in the drought-prone belt. Many of these

areas have a high density of population with limited opportunities for non-

agricultural employment.

(c) The North-East : The problem of this region arises partly from its remoteness from

the national market and partly from the socio-cultural base.

(d) Tribal Areas: These are generally found in two compact blocks, one in the North-

Eastern part of the country and the other in Central and Eastern India. In theformer case, the problems are largely locational and social. As regards the latter,

small pockets of modern industry co-exist with backward rural areas with a high

rate of unemployment.

(e) Ecological Problem Areas: These include desert and hill areas which have a

limited scope for economic development.




K. Aswathappa

Chapter 28

Balanced Regional

Development

Why Backwardness of Some

Regions? Seeds for regional imbalances was sown by the

Britishers. They focussed on certain regions and the restwere neglected

Physical factors favour some regions and others remainbackward

Locational advantages attract industries leading to thedevelopment of regions which enjoy such advances

Decisions makers have been favouring some areas only Sanctions and disbursements by financial institutions are

also responsible for regional imbalances




K. Aswathappa

Chapter 28

Balanced Regional

Development India’s Best and Worst States Big States Rank Small States Rank Union Territories Rank

Punjab 1 Goa 1 Chandigarh 1

Kerala 2 Delhi 2 Andaman & Nicobar 2Himachal Pradesh 3 Pondichery 3 Daman & Diu 3

Tamil Nadu 4 Mizoram 4 Lakshadweep 4

Haryana 5 Sikkim 5 Dadra & Naga Haveli 5

Maharastra 6 Arunachal Pradesh 6

Gujarat 7 Manipur 7

Karnataka 8 Nagaland 8

Uttaranchal 9 Tripura 9Jammu & Kashmir 10 Meghalaya 10

Andhra Pradesh 11

Rajasthan 12

West Bengal 13

Madhya Pradesh 14

Chattisgarh 15 Assam 16

Uttar Pradesh 17

Orissa 18

Jharkhand 19

Bihar 20

(Source: India Today , August 15, 2005)




K. Aswathappa

Chapter 28

Balanced Regional

Development

Measures to Remove Regional

Imbalances(a) Recognition of backwardness as a factor to be

taken into account in the transfer of financial

resources from the Centre to states;

(b) Special area development programmesdirected at the development of backward

areas;

(c) Dispersal of industries;

(d) Growth centres;

(e) Nucleus plants; and

(f) Banking policy.

balance of disparities

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