The Development Inertia

As today, the problems in the development arena have significantly changed in comparison to the scenario a decade earlier. Some regions of the country have grown significantly faster than some other not so lucky regions of the country. This has led to a sectoral differences in the over all national picture.

If we take more closer look at the events happened during the last decades, we see that the states which have delivered bettre results were more open to changes happening in the economy. These states attracted higher level of investments from regional, national and international investors. This helped these states to generate greater employment opportunities in the manufacturing as well as service sectors.

Once these states got enough liquidity with them, they started investing more in education, health and other basic infrastructural sector. This led to a significant increase in the availablity of trained healthy manpower leading to more investments in the IT, Telelcom, Energy and other growth sectors.

The moral of the story for the other states is to cross the initial development inertia and get themselves involved in the Indian growth story.