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Question 32 of 32

Q.Explain the causes of regional imbalances in India.

Yanam BieapBIEAP AP Intermediate (2nd Year) Commerce Board 2024Subjective· 10mImportance★★★★★est
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Regional imbalance — the uneven level of development across India's regions and states — is caused by differences in natural endowments and geography, historical/colonial legacies, uneven infrastructure, the tendency of private investment to flow to already-developed areas, migration, political factors and weak implementation of balanced-development planning.

This 10-mark question from the AP Intermediate 2nd-year Economics development unit asks for the causes of these imbalances.

Causes of regional imbalances in India

  1. Differences in natural resources and geography. Regions rich in fertile land, minerals, water or favourable climate develop faster, while hilly, arid or resource-poor regions lag behind.

  2. Historical and colonial factors. During colonial rule, development was concentrated around port cities and administrative centres, leaving the interior and other regions neglected — a gap that continued after independence.

  3. Differences in infrastructure. Regions with better transport, power, irrigation, banking and communication attract more industry and investment; backward regions with poor infrastructure cannot.

  4. Concentration of private investment. Private investors prefer developed regions where infrastructure, markets and skilled labour already exist, so investment keeps clustering there (the 'backwash' effect), widening the gap.

  5. Migration of resources and skilled people. Capital and talented workers move from backward to advanced regions in search of better returns and opportunities, draining backward regions.

  6. Political and administrative factors. Differences in the strength of state governments, political will and quality of administration affect how much development each region achieves.

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