We document the divergence of per capita incomes across states in India between 1960 and 1996. We find that differences in the evolution of state-specific productivity can account for most of the observed increase in income disparities across Indian states during this period.

In this paper the authors study the economic evolution between 1960 and 1995 of two states in India - Maharashtra and West Bengal. In 1960, West Bengal's per capita income exceeded that of Maharashtra. By 1995, it had fallen to just 69 percent of Maharashtra's per capita income. The authors...

In this paper the authors study the economic evolution between 1960 and 1995 of two states in India — Maharashtra and West Bengal. In 1960, West Bengal’s per capita income exceeded that of Maharashtra. By 1995, it had fallen to just 69 percent of Maharashtra’s per capita income. The...

In this paper we study the decline of West Bengal relative to Maharashtra, historically two of the most important states of India. In 1960, West Bengal's per capita income exceeded that of Maharashtra, the third richest state at the time. By 1993, it had fallen to just 69 percent of...