State-wise analysis of the Indian growth miracle

ARVIND SUBRAMANIAN of the Peterson Institute and UTSAV KUMAR of the Asian Development Bank analyze patterns in India's decadal growth in 2001-2009 vs the 1993-2001 as the turnaround in policy entered its third decade since 1991. 

In a Business Standard op-ed, "India: Growth in 2000s- Key Facts", they present four key findings on the state of growth in India  

1. Doubling of growth: Per-capita growth rates doubled in the 2000s in most states with the exception of Himachal Pradesh and Rajasthan 

2. Increasing divergence: Richer states on average grew faster and pulled away from the rest and inequality increased in spite of the stellar performance of hitherto laggards such as Bihar, Orissa and Chattisgarh 

3. Vulnerability to globalization: Globalization catalyzed growth as well as decline exemplified by states such as Karnataka, Andhra Pradesh and Maharshtra where growth accelerated prior to 2008 and declined sharply during the global financial crisis 

4. Demographic complacence: Demographically aging states such as Kerala, Tamil Nadu, Maharashtra and Gujarat did remarkably well while demographically dynamic states such as U.P, Rajastan and M.P did not fare as well.

They state that the Indian growth miracle continued to confound with India capacious enough to allow both Bania, reforming Gujarat and Marxist, reform-resistant Kerala to flourish.