RUDN Journal of Economics (Mar 2022)

Territorial differentiation of the socio-economic development of Republic of India

  • Mariya B. Ivanova,
  • Yaroslav A. Glukhov

DOI
https://doi.org/10.22363/2313-2329-2022-30-1-93-109
Journal volume & issue
Vol. 30, no. 1
pp. 93 – 109

Abstract

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India is one of the countries in the world that shows dynamic growth in the development of all spheres of social and economic life of the population. At the same time, it is characterized by colossal differences in the level and quality of life of citizens. The work reveals territorial disparities in the level of social and economic development of the state. A comprehensive typology of the states and union territories of India was created, based on the economic and social statistics of the National Institute for Transformation of India. Economic development was considered in the context of a macroeconomic approach and is associated with the study of the gross regional product by administrative units of the state according to indicators of three sectors of the economy: primary, secondary, and tertiary. We analyzed social development in the context of five categories of indicators for the states and union territories of India: education, demography, poverty, infrastructure, and public finance. Principal component analysis was taken as the key analysis method. For each block, dozens of actual indicators were used in the structure of economic and social analysis. During analysis of variance and analysis of eigenvectors within the framework of the principal component method, latent indicators were determined that determine the level of development of each sector of the economy and the level of development of each category of social indicators. The factors of spatial development, which determine the territorial differentiation of the socio-economic life of the population by states and union territories of India, are highlighted. The functioning and development trends of the administrative-territorial units of India are assessed. Five states and union territories were ranked as the lowest, eight as low, eleven as medium, and six as high socio-economic development. The state with the highest level of socio-economic development was Maharashtra. It is the only administrative unit in India that has taken a leading position in the typology for many separate blocks of economic and social development. Against the background of an increase in economic growth and social indicators, a large gap remains in the country between wealthy and poor citizens, which complicates more effective socio-economic development of both individual regions of the country and India as a whole. This aspect should become a priority in the development of India.

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