ESSENTIALS OF BUSINESS ENVIRONMENT Chapter 28

BALANCED REGIONAL DEVELOPMENT

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

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Essentials of Business Environment K. Aswathappa

Criteria for Backwardness

(a)

Chapter 28 Balanced Regional Development

(b)

(c) (d)

(e)

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. 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 nonagricultural employment. The North-East: The problem of this region arises partly from its remoteness from the national market and partly from the socio-cultural base. Tribal Areas: These are generally found in two compact blocks, one in the NorthEastern part of the country and the other in Central and Eastern India. In the former 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. Ecological Problem Areas: These include desert and hill areas which have a limited scope for economic development.
Essentials of Business Environment K. Aswathappa

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Why Backwardness of Some Regions?

Chapter 28 Balanced Regional Development

Seeds for regional imbalances was sown by the Britishers. They focussed on certain regions and the rest were neglected Physical factors favour some regions and others remain backward Locational advantages attract industries leading to the development 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

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Essentials of Business Environment K. Aswathappa

Indias Best and Worst States Big States Rank Small States Rank Punjab 1 Goa 1 Kerala 2 Delhi 2 Himachal Pradesh 3 Pondichery 3 Tamil Nadu 4 Mizoram 4 Haryana 5 Sikkim 5 Maharastra 6 Arunachal Pradesh 6 Gujarat 7 Manipur 7 Karnataka 8 Nagaland 8 Uttaranchal 9 Tripura 9 Jammu & 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)
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Chapter 28 Balanced Regional Development

Union Territories Chandigarh Andaman & Nicobar Daman & Diu Lakshadweep Dadra & Naga Haveli

Rank 1 2 3 4 5

Essentials of Business Environment 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 programmes directed at the development of backward areas; (c) Dispersal of industries; (d) Growth centres; (e) Nucleus plants; and (f) Banking policy.

Himalaya Publishing House

Essentials of Business Environment K. Aswathappa