India-Economic Development of the States

Among the major states Haryana has the highest net state domestic product(NSDP) of Rs.78000 during 2009-10 followed by Maharashtra with Rs.65000,Punjab Rs.61000 and Gujarat Rs.50000.

The southern states of India have more or less the same level of net state domestic product with Kerala having Rs.49000,Karanataka Rs.45000, Andhra Rs.44000 and Tamilnadu Rs.45000(for 2008-09).

The large states like Bihar Rs.15000,MP Rs.24000,Rajasthan Rs.29000 and UP Rs.21000 have very low NSDP.These states have high density of population but this should not be a reason for low per capita NSDP.States like Haryana,Punjab,Kerala and West Bengal also have high density of population but their NSDP is much higher than these states.The cause of under development is due to the states not fully utilizing their manpower assets.The resources of these states,as far as capital is concerned,is not scarce as entrepreneurs from all over the country would have located their factories if the work culture of the people is good.The states also are good locations for factories being densely populated ie the market is large.In states like Tamilnadu and Karnataka the entrepreneurs are from states like Rajasthan,Gujarat and foreign countries..In order to attract industries,the states have to create ideal conditions.

It is also observed that smaller states like Haryana and Punjab and medium states like Gujarat,Tamilnadu,Karnataka,Andhra Pradesh and Kerala have higher NSDP.In this context,it is important to divide the states like UP,Bihar,MP and West Bengal.

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