Base of regional disparities: pure foreign investment

Abstract

Persistent disparities in regional economic conditions in India continue to offer challenges to policy makers. In the era of globalization and privatization the process of regional growth has become much more complex owing to the expanding role of private investment, be it domestic or foreign. Their flows to the states are highly mobile towards the states with skilled labor force with a good ‘work culture’, good socio-economic infrastructure and good governance. Private investments have emerged as one of the major source among the various sources of resource transfers which have further led to widening of regional disparities. This article depicts the inter-state study of 14 states and the flow of foreign investment in bringing about disparities.