Columbia International Affairs Online: Working Papers

CIAO DATE: 11/2010

Globalisation, Domestic Market Integration, and the Regional Disparities of India

Arne Melchior

October 2010

Norwegian Institute of International Affairs

Abstract

India's growth has been accompanied by growing regional disparities. The paper shows that increased international trade is hardly the reason; the explanation is more likely related to regional differences in skills, investment and infrastructure. If growth is to reduce poverty, India should strengthen integration between its states and not only the international trade.