28.9.13

Development Index


A new development index has identified Gujarat as a less developed state, while ranking Odisha and Bihar along with eight others as “least developed” and Goa and Kerala among seven “relatively developed” states.
A panel headed by Raghuram Rajan, now the RBI governor, which submitted its report to finance minister P Chidambaram, also recommended a fresh approach to devolution of funds to states and moved away from the special category classification to devise three categories — least developed, less developed and relatively developed. According to the index, there are 10 least developed states, 11 less developed and seven relatively developed states in the country.
3-TIER RANKING
LEAST DEVELOPED: Odisha, Bihar, MP, Chhattisgarh, Jharkhand, Arunachal, Assam, Meghalaya, UP, Rajasthan
LESS DEVELOPED : Manipur, West Bengal, Nagaland, Andhra, J&K, Mizoram, Gujarat, Tripura, Karnataka, Sikkim, Himachal Pradesh
RELATIVELY DEVELOPED : Haryana, Uttarakhand, Kerala, Maharashtra, Punjab, TN, Goa Nitish happy Bihar on least developed list


The panel has developed a multi-dimensional index of backwardness based on monthly per capita consumption expenditure, education, health, household amenities, poverty rate, female literacy, percent of SC-ST population, urbanisation rate, financial inclusion and connectivity. The panel said less developed states rank higher on the index and would get larger allocations based on the need criteria.
“The committee has proposed a general method for allocating funds from the Centre to the states based on both a state’s development needs as well as its development performance,” Chidambaram said.
The panel was set up after persistent demand from Bihar CM Nitish Kumar who insisted a special category status to help access more funds for its development. This sparked off a demand from several other states such as Odisha for the special category state status. 

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