Bloated spending levels, and a lot of money in unfunded government employee pension results in various obstacles in economy recovery in several states. This begs the million or trillion dollar question – WHY ARE SOME STATES PROSPERING WHILE OTHERS ARE STILL STRUGGLING OR POSSIBLY CONVERGENCE COULD BE SEEN.Will market reforms enrich rich states further?
We need to take notice about the different sectors related to any state, for instance, their agricultural sectors, their ability to produce surpluses and urbanization.
The agriculture factor depends on the productivity of the crops or the export market. Green revolution has eventually increased the productivity of the crops. As a result, short-stemmed, high yielding varieties of wheat, that required less of irrigation and fertilizers, was a better idea of productivity rather than the growth of paddy which drew heavily on fertilizer use and irrigation, considering Punjab and Haryana as the epicenter. Larger parts of BIMARU states i.e., Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh as well as Orissa and Andhra Pradesh have the agro-climatic potential to generate high agricultural outputs as per the high rainfall and the perennial rivers.
The decreased economy in these states has been taken a result of the agro climatic factors. The parts of the country that experience dry climatic conditions or more of a rocky surfaces or may be dense parts are not considered suitable for the agricultural growth and as a result make them predominantly poor. But this is not the only case, urbanization has been increased eventually from time to time.
Urbanization basically started making its grip in the 1980s and the 1990s. There are various percentiles of urbanization in different parts of the country which may be dye to the lesser capability in the agricultural fields that was considered as a result of poor or irrelevant climatic conditions.The ratios totally depend on the geographical factors as per a particular area.
If we compare our agriculture system with that of US, we would find that, only 2 percent of the population is under labour and which feeds the whole of the population of US efficiently. The population apart from the labour ones are mostly inhabited within hundred kilometer of coast.
But apart from the various factors, though India and China are the countries that are pretty away from the sea area. Thus due to the lesser agro productivity among the people, it becomes necessary for more and more number of people to get engaged under this.