Flagship Seminar | Regional Inequities and Implications for Federalism

In the third and final part of CSEP’s Flagship Seminar series that takes a closer look at India’s public finances, Pronab Sen, former Chairman of National Statistical Commission, discusses “Regional Inequities and Implications for Federalism", with Sajjid Chinoy, Chinmay Tumbe and Anoop Singh, with opening remarks from Rakesh Mohan.

Watch | Part I on India’s Overall Fiscal Architecture
Watch | Part 2 on Federalism and human capital

Abstract: India has grown rapidly, and State-level per capita income has risen over the decades. However, States’ per capita incomes have not converged over time, income disparities have widened, and this trend is likely being exacerbated during the pandemic. Why has India’s strong growth not benefited the states more evenly and, looking ahead, what can be done to achieve more inclusive and sustainable growth as India builds back after the pandemic? Differences in States’ policies and economic structures may be the main drivers of the disparities across Indian states, but transfers by the Centre have played a major role in trying to meet the differentiated needs of Indian states. Does this pattern need to change, and what are the implications for federalism? Can more be done by the Finance Commission in the horizontal sharing of resources between states, or do States need to play a greater role in addressing the regional factors, including migration, that are the drivers of disparities?

Keynote Speaker:
Pronab Sen, Former Chairman, National Statistical Commission of India and current Programme Director of the International Growth Centre’s India Programme

Discussants:
Sajjid Chinoy, J.P. Morgan’s Chief India Economist and a member of the Economic Advisory Council to the Prime Minister

Chinmay Tumbe, Assistant Professor at the Indian Institute of Management, Ahmedabad

Moderator:
Anoop Singh, Distinguished Fellow at CSEP; Member of the Fifteenth Finance Commission and Director of the Asia Pacific and Western Hemisphere Departments, IMF

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All content reflects the individual views of the speakers. The Centre for Social and Economic Progress (CSEP) does not hold an institutional view on any subject.