Regional dimensions of India's economic development

In a dynamic and developing economy, modifications in the objectives and goals of development need to be made from time to time, not only to account for imbalances created due to faulty or inadequate policy formulation and implementation but also on account of super-imposition of factors external to the national economy. It, therefore, becomes necessary to review the planning process for national development from time to time to take into account the changing national and inter-national economic scene. In a federal country like ours, it is also vital that facilities for development at a desirable pace are provided to all the constituent units of the Union in a manner such that they are enabled to become healthy and vibrant units of the overall national fabric. With a sound basic infra-structure for growth both in the agricultural as well as in the industrial sectors having been laid down in earlier plans, it is essential that planning emphasis should now shift markedly from macro planning to micro-planning with increasing decentralization of the Plan formulation and implementation processes to the State, District and Block levels.

The conceptualisation and concretization of regional development indicators assumes particular significance in this process of decentralized planning. This subject is not only difficult as an academic exercise but is also controversial in as much as such indicators have generally been utilized by the State Governments in seeking higher quantum of Central assistance on the basis of their relative backwardness. The identification and analysis of development indicators is, however, vital to the present planning process which must necessarily proceed from the national and State levels to the district, block and village level in concrete terms. Such analysis could reveal not only the differential levels of creation of intra structure in productive and social sectors in different areas, but also extend to levels of utilization of facilities already created and of local natural resources. Such analysis could make local level planning more effective and meaningful.

While multi-level planning exercises have been done at the national and State level from the Third Five-Year Plan period or even earlier effective decentralization of planning process could be achieved only through the actual allocation of financial resources to the district level. Such allocation has been done in Uttar Pradesh from the financial year 1982-83 onwards and about 30 per cent of the State's resources available for financing development through the Annual Plans have been distri buted in between the districts on the basis of their population and relative backwardness in agricultural and industrial production and social infra structure. In view of this pioneering work done in Uttar Pradesh, it was decided by the Planning Minister. Government of India and the Minister of Uttar Pradesh to hold a National Conference at Nainital Uttar Pradesh). The Conference was intended to discuss various aspects vital to of the planning process centered mainly on the measures for alleviation of poverty and for more effective regional the success of the National Plan efforts. Another area of concern for the co-operation which is Conference was the fact that while programmes and schemes for develop ment had been taken up for backward areas the past many years, their impact on the families subsisting at the lowest economic levels was not evident to the desired degree. As such, proper indicators needed to be built up within the programmes and schemes themselves to ensure that their benefits actually percolated to the poorest target groups. Assessment of programme implementation on the basis of such indicators during the course of its operation would enable necessary corrective measures being taken to ensure that this objective is not being lost sight of.

The National Conference held at Nainital in April, 1982, was largely attended by eminent economists and planners of the Government of India, several State Governments, prominent academic institutions and voluntary agencies. The document on "Regional dimensions of India's Economic Development" now being brought out embodies the papers presented in the Conference. The papers have been categorised into: (a) regional development indicators, (b) poverty and standard of living. (c) State income accounts and centre-state financial relations, and (d) inter-state development indicators and methodological issues. The papers included in the document discuss the above and related issues in depth. The papers contain a wealth of data and an objective analysis of different planning issues and it is expected that they would be of value to all planners and economists concerned with regional development. Deliberations at the Conference revealed the inadequacies of data being experienced in different States for compilation and analysis of development indicators. It was felt that the States should improve their data base specially for micro-level planning. The assistance of the Planning Commission, not only in providing a data bank for the entire country, but also guidance and assistance to States in the improvement and strengthening of their statistical organisations, wherever necessary. would be available in this regard.