Inter-temporal differences in regional development

ABSTRACT A comparison of major aspects of economic structure and access to resources (value added, consumption, diversity, sectoral shares, degree of urbanization, population with high-end skills and access to financial resources) for Indian regions (all states and union territories across the country with larger states divided into smaller and more comparable subregional units of NSS regions) between 2004–05 and 2011–12 identifies the factors that differentiate regions and shows that differences in these factors have increased over time. A step-wise discriminant analysis indicates that regional output and consumption were the key distinguishing factors, along with the sectoral composition of the regional economy. Clear evidence was found of a move towards greater diversity in the local economy, the emergence of construction and other service sectors with significant shares, and increased but more unequal access to finance and skills.