Regional Economy of India: Growth and Finance

It is increasingly recognised that to achieve inclusive growth and sustain growth momentum, regional economy is of critical importance. Given the divergence in growth potential, financial developments and inflation across regions in India, studies on regional economies become particularly relevant. This volume makes an attempt to place in public domain select work on various aspects of the regional economy by economists working in the central and regional offices of Reserve Bank of India. The papers find that while the share of agriculture has shrunk across the states, the share of services has risen sharply. However, industrial growth remains uneven. Urban-rural inequality has worsened. There is a need for concerted action on agricultural growth and infra-structure development besides increasing the penetration of formal financial sector to alleviate the constraints on growth and to control inflation. There is also need to prioritise expenditure towards social sector to develop the quality of the labour force and promote well-being. This volume is aimed at stimulating further policy-oriented research on various aspects of regional economy as well as contributing to better policymaking.