Managerial Economics Essay

2133 Words Nov 4th, 2013 9 Pages
South vs. North Divide in Development
This assignment talks about why northern states are less developed than southern states. Since overall economy of India has improved and the growth rate overall is good but if we compare the growth rate of southern states and some western states it is more than that of northern states (excluding Delhi and Punjab). This is the main reason why the overall growth rate of the country is not booming. In this study I have examined the state wise performance of more developed states and why they have developed more than other northern states. Majorly I have talked about following sectors which affect the growth of a region. They are:- * Population * Agricultural * Electricity and power supply
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All the industries, factories as well as home we need electricity and fuel. If we see all the developed states have better electricity and supply and less developed states have poor electricity supply and due to the less industrialization development takes place in those states.

4. Illiteracy:-

It also affect the growth and development of the state. In most of the under developed states literacy rates are very low. States like Bihar, Madhya Pradesh, and Uttar Pradesh has lower literacy rate and hence are less developed and state like Kerala, Karnataka they have almost 95% literacy rate so they are highly developed.

5. Industrial Development:-

It plays a vital role in the overall development of a region. The states having more number of industries are more developed than the states having less industrial development. Industries and factories create employment and if the people get employment automatically the state will get developed and the GDP rate will rise. As we can see states like Gujarat, Maharashtra, Karnataka, Andhra Pradesh and Kerala have large number of industries. And the northern states like Bihar, Uttar Pradesh, Rajasthan and Madhya Pradesh have very less industrial development that is why they are under developed.

6. Poverty:-

The main cause of poverty is over population. Rural areas has higher poverty rate than urban areas. Lack of job opportunities is the main cause of poverty. In most of

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