Journal Press India^®

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In this paper, we compare Indian states in terms of infrastructure development and economic development and identify states that lag behind both in terms of infrastructure and economic development. The study also investigates the role of infrastructure in determining the level of economic development across Indian states. Considering the multidimensional nature of infrastructure and economic development, we have estimated two composite indices: a composite index of infrastructure development and a composite index of economic development. We have applied principal components analysis techniques to generate weights for the selected indicators. Our finding shows vast differences among the states in the level of infrastructure development and economic development. Further, we find that variations in the availability of basic infrastructure facilities across states largely explain the persisting inter-state differences in the level of economic development.

Keywords

Infrastructure; Economic development; Indices; Inter-state disparities.

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