TO BEGIN WITH:The given assignment describes about NORTH-SOUTH DIVIDE IN INDIAN GROWTH which tells that since last

60 years, the states, Andhra Pradesh, Maharashtra, Gujarat, kerala, Karnataka, tamil nadu had been developing at a faster pace than northern states of india. Development of a state or a country is multi-dimensional phenomenon. There are several disparities among northern and southern states of india in economic terms like rural and urban poverty rates, per capita state domestic product(NSDP), investment, literacy rate etc which caused south india to lead over its northern counterparts. In the assignment an attempt has been put to understand various factors responsible for the development of any state in a country and factors which have made some states in india to grow at a faster pace than rest. The major areas in north are rajasthan, uttar Pradesh, Haryana, Punjab, jammu & Kashmir, bihar and newly added states are uttarakhand, Jharkhand, chattisgarh, these have been major areas of concentration in terms of development. GENERAL EXAMPLES:India has always shown broad sensed variation in income across different states.take into consideration per capita net state domestic product (NSDP) was Rs.14000 for tamil nadu in the year 1993-94 prices, whereas, uttar Pradesh, which is a northern state had shown Rs6138 as its NSDP in same year, this clearly tells that NSDP for northern states was not even half of southern states. As per data collected from DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION, government of INDIA, dadar and nagar haveli, Maharashtra and daman and diu together contributed to 32 % of FDI inflow into the country but at the same time north india i.e DELHI, UP & haryan contributed to 18% only, whereas, states like uttarakhand contributed far less than 0.02% to FDI inflows to the country. INTER- STATE DIFFERENTIALS IN GROWTH:India being an agricultural country, the major contribution towards GDP comes from the agricultural sector and northern belt is major contributor of the agro-sector. In 1950s agriculture sector was the major contributor towards GDP i.e. 50% but this drastically reduced to 26% in 1990-91.Agricultural productivity tells the percentage of rural public in any state. Since northern region is having more agricultural productivity, rural population is spread over a wider region than south india.But gradually various steps have been taken to reduce rural population and produce better farm yield. In addition to agricultural productivity factors like urbanization, infrastructure, investment flows, and privatization do contribute a lot in economic performance of any state. The following are the reasons for inter- state differentials:-

1.) SOCIO-ECONOMIC FACTORS:There are several indicators like literacy rate,economic opportunities, private investments etc which differentiate between northern and southern states i) Per capita income:Employment elasticity is larger in south india as compared to north india This is fundamental element that describes about the economic living standard of public in a state which reflects in the country.The per capita income is obtained from the private investment, which determines in creating jobs and hence more income. The NSDP has been shown for southern states( Andhra Pradesh, Karnataka, tamil nadu and kerala) and northern states( uttar Pradesh,bihar, rajasthan and Punjab) since 1960s to 2006 . the NSDP for south india is Rs.27027.75(US$430) and in north india this is quiet low i.e.

FIG:- PER CAPITA INCOME IN NORTH AND SOUTH INDIA the graph shows there is higher level of income in south india and the curve is increasing drastically as compared to north india which is not that steep curve. This tells that northern region is more prone to economic distress. ii) Rural population: Lets talk about distribution of per capita income in rural and urban areas showing disparities in south and north Indian states. The graph shows that the northern belt has more concentration of rural public.

FIG:- PERCENTAGE OF RURAL POPULATION In early 1960s the rural public was more concentrated in the southern part (i.e. Andhra Pradesh , tamil nadu and kerala ) was 65% as compared to north which was 48%. But southern region took faster measures for urbanization than north. iii) Urban poverty rate: In 1973, the urban poverty level was more in north india as compared to south but gradually the percentage started declining in north and till 1990;s both regons reached almost same level.

FIG:- PERCENTAGE OF URBAN POVERTY Rural poverty is more related to the agricultural productivity whereas, urban poverty is more about employment opportunities , salaries and wages , in urban area.

iv)

Service sector contributing towards NSDP:-

Till 1980-81, the two regions showed more or less same level of contribution but after 1981, the contribution of uttar Pradesh declined as compared to tamil nadu during same year, which showed increased contribution of south india in service sector. Hence south india contributed more towards GSDP. v) GDP:Between the years 2005-1010, the national GDP has grown upto 8.7%, maximum contribution was from the southern states i.e.7.85%, Karnataka accounted for 8.7%,kerala at 8.1%, Andhra and tamil nadu contributed 7.4% .

1 2 3 4 5 6 7 8 9 10 11 12 13

Maharashtra Gujarat Bihar Andhra Pradesh Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Chhattisgarh Rajasthan Tamil Nadu Uttar Pradesh

6.3 12.7 5.3 17.9 11.3 10 7 16.2 13.8 8.3 9.2 17.2 9.8

8 16.1 22.8 14.8 18.4 8.5 7.1 15.4 11.4 23.2 18.6 19.9 12.4

15.2 19.8 13 15.2 16.4 8 7.5 17.7 13 18.4 11.7 12.5 11.1

18.3 13.2 26.2 10.2 16.6 9.3 7.7 12.4 13.8 16.9 13.8 13.7 14.3

18.3 13.3 14.2 15.9 16.2 9.4 7.9 9.4 13.7 10.7 11.2 17.3 15

18 18.4 20 25.12 17.1 16.1 8 14.7 13.3 15.8 17.4 14.8 11.3

14 Uttarakhand 18.9 FIG:- GDP PER CAPITA

19.3

21.3

18.9

17.5

14.6

GDP PER CAPITA

40 PERCENTAGE 30 20 10 0 SOUTH INDIA NORTH INDIA SOUTH INDIA NORTH INDIA

gradually, bihar and uttarakhad, which were considered to be backward states started picking up in the race and contributed 16% and 14% respectively. Higher percentage of contribution to GDP by southern states is due to higher rate of employability and skilled labour, these are employed into various sectors like information technology and automobile sectors etc which provide higher income and employment rate. The concentration of these sectors is more in south zone including Gujarat and Maharashtra.

2.) INVESTMENT AND ECONOMIC OPPORTUNITIES:The disparities in this topic between north and south region talks about private investment flows.
Private investment flows

FDI Inflows

Domestic investments

These disparities help in creating jobs, thus increase in employability, income and hence contribute to economic growth. Underlying situations are also reflected , infrastructure and public sectors.

South india is a way ahead of north india in attracting public for the investments. The northern belt falls into low-level equilibrium in the investment inflows, with Rs 1.7 trillion inflows unlike southern belt which has Rs 4.74 trillion on an average from 1995-2003. This huge difference is due to the lack public interest and awareness in north india.

FIG:- ACTUAL INVESTMENT FLOW IN NORTH AND SOUTH INDIA Larger investments create greater chances of employment and income. But the decrease in investment trend in north india shows its downfall. This created lesser job opportunities in north india whereas south india was able to create more employment opportunities. 3.) EDUCATIONAL AND HEALTH INDICATORS: This includes literacy rate, infant mortality rate, percentage of population involved in technical streams etc. This also includes working age group and people doing higher education in various states. i) Literacy rate:This talks about the level of knowledge and awareness among the public. Higher the literacy rate, there will be more understanding, in depth thinking, better use of technology in the public. More the level of literacy in the population , more will be the productivity, more employment and more income. Hence there will economic growth at a better pace. Education is given the highest priority in south india and is the major source of their livelihood. The overall literacy rate in north india 60 % as compared to south india which has 72.87% literacy rate. South india leads in education and skill development.kerala is the state with highest literacy rate india.

Also south Indians have a better command over English language than north Indians. South india has many IT HUBS and automobile manufacturing plants than north creating better employment opportunities. EDI(EDUCATIONAL DEVELOPMENT INDEX) of northern belt is very low as against south , bihar being the last with 0.44 EDI. Low EDI indicates low level of skilled employment, so more low profile dropouts in north india. Also, north india has lower intake for higher education as compared to south. ii) Technical knowledge:More population enrolled into the technical field creates positive impact as more skilled labour can be generated who will contribute more towards per capita income. This will ensure increase in workforce with higher productivity. The statistics show that south india has 50% educational institutions against north which is 20%, so there are lesser job opportunities in north in technical field. Working age groups:The working age groups gain practical knowledge and experience and hence contribute towards better productivity. In south india irrespective of gender students after completion of their education are encouraged to do jobs hence there is higher productivity in south than north, which is positive indicator for per capita income Infant mortality rate:This is a health indicator which shows progress on health.this factor contributes indirectly in the investment flows as good health ensures higher productivity. Low IMR indicates healthier life , more population will be contributing to economic progress. IMR is much lower in south India i.e against which is in north india. This tells us clearly that there is good pr-natal medical care and required facilities in south. Employment rate and Income levels:Better education and use of technical knowledge, also in south india level of urbanization is more, this makes south Indian population to have higher income levels as compared to north india. This created an uneven distribution of income in the country. Employment rate tells ability to create more job opportunities in a state or country. This is crucial link between social and demographic determinants. North india has more coverage of agriculture region than manufacturing sectors so has lesser income levels as contribution of agriculture to GDP has decreased over the years.

iii)

iv)

v)

vi)

Sex ratio:Tells the ratio of males and females in a particular state.

There has been a drastic fall in sex ratio in north india since 1990 which created a large gap in percentage of men and women in north india and in south india the ratio is almost equal. This encourages women empowerment in south india and also encourages their education over north india. Hence contribution of north india has been reduced to a large extent in soco-economic development of the country.

4.) INFRASTRUCTURE:The question always arises in our mind whether infrastructure really contributes to economic growth??? YES, it does. Infrastructure is a broad term which includes electricity which is required for manufacturing; telecommunications which is very much necessary for reducing transaction costs in various firms; good transportation facility and wide spread over the market for better connectivity. All these factors contribute in large sense to economic growth. Electricity is the necessity for the manufacturing processes to increase the output. Telecommunications play a major role in reducing transportation costs and hence increases organisational efficiencies. After the liberalization policy in 1991, since then south india experienced continuous raise in installed capacity of electricity unlike north india which had to face many hurdles in the point of installed capacity expansion. This created a better platform for the industries in south zone. Even the electricity supply in household was not disrupted on a regular basis as in north.

5.) GOVERNANCE:Good governance is of utmost importance for the development of any state. Along with law and order this includes pending cases trial in court, police firing etc. Apart from Andhra Pradesh all these are at lower level in south than in north which indicates better governance in south. Upward shift in per capita income,literacy rate, employment opportuties and downward curve of poverty line and greater flow of investment in the form of FDIS and domestic investments prove that south Indian states developed at a faster pace against north india. FUTURE EXPECTATIONS FOR NEXT 20 YEARS:Through in above analysis we have found that though development of north Indian states was low but states like bihar and uttarakhand, which were considered to be backward during 1950s gradually started developing though at a slower pace now bihar is no longer a backward state. SAFE DRINKING WATER FACILITY & ELECTRICITY:Today many rural areas in india dont have safe drinking water facility. It is expected that government will look into the problem and each house will be provided with drinking water. Electricity is also a major problem faced in north india, though south india also faces this issue but not as serious issue. Government should take proper measures to increase installed capacity without involving into scams as in north india there are many villages which even today dont have electricity especially in uttar Pradesh and bihar. HEALTH CARE:Today many places of north india are facing problems with:improper sanitation less availability of hospitals for comman man improper hospital care etc These are very serious issues which create unhygienic environment. The state governments should engourage doctors to serve in rural areas and take proper care of comman man to reduce INFANT MORTALITY RATE which is very high in north india.

COMMUNICATION:During early 1950s most of the regions in south india were under rural areas but they started urbanizing at a faster rate than north india . Communication plays a very important role in the infrastructure development of any state. This is basically used to reduce transportation costs which relates with communication infrastructure and mass media. South india, where most of portion in under urban culture has wider area of communication.

Governments of north india will hopefully try for faster urbanization and hence effective modes of telecommunication will also increase. This gives better exposure to the public through TV, INTERNET, etc than in rural areas. MEASURES TO BE TAKEN FOR FURTHER DEVELOPMENT:-

In the year 1990 government of india made new reforms , one of those was LIBERALIZATION and opened gates in india for trading and business to the world. Since then there have been many developments in the country, still INDIA being a developing country needs to improve more. Following measures can be taken for further improvement: POVERTY ERADICATION:According to INDIAS PLANNING COMMISSION, there has been decline of 37.5% poverty in india 2005 and by 40% in 2010 and now for south india it is 17.4% public below poverty line. Still northern states Orissa,bihar, uttar Pradesh, chattisgarh etc are prone to below poverty line regions as compared to southern states. Awareness should be created among the rural public as those are the ones who are not educated . Strict policies should be implemented to encourage education, which will provide them with better employment opportunities and will bring them up from poverty zone. CREATING MORE EMPLOYMENT OPPORTUNITIES:Thousands of graduates come out every year, reforms should be taken to encourage manufacturing and IT sectors in north india like in south india which will employ more people. Also government should provide better job opportunities in public sector which will provide the public with job securities.

INCREASE IN FOREIGN TRADE POLICES:India being a developing country , imports are more than exports and south india is major source of exports. State governments of north india should encourage exports in agricultural sector as north india has wider spread of agro region. This will increase our FDI and will allow more foreign currency flow into the country.

URBANIZATION POLICIES:As major portion of north india is under rural area, government should make fast strategies for urbanizing those places which will encourage establishment of various MNCs in north india and will indirectly create job opportunities in a broader sense. GOVERMENT CAN TAKE EFFECTIVE MEASURES TO CHANGE MINDSET OF PEOPLE south Indians are much more hardworking and work in a smarter way and hence government has taken effective measures to encourage various IT firms in south zone,many MNCS are there in Bangalore, Hyderabad, cochin,Chennai ,ahemdabad etc . I dont mean to say that north Indians arent hardworking but they have a very narrow minded approach towards work and people, this attitude needs to changed and government shoul counduct various training sessions to groom them. REFORMS IN HEALTH SECTOR:Major areas are facing problems with sanination,unhygienic conditions which are root causes for majorty of diseases. These issues have to be strictly looked upon by the individual state governments to improve health of overall country.