Friday, July 22, 2011

The economics behind demand for smaller states


    











The Telengana movement in the state of Andhra Pradesh has picked up momentum again and is causing losses to the tune of thousands of crores (billions) of rupees to the exchequer during bandhs, not to mention the loss to the students who are actively involved in the movement.


The rationale of underdevelopment stated by the pro-Telangana activists for the formation of a separate state seems a bit stretched, especially since the socio-economic data presented in the Srikrishna Committee report and analyses by various other independent bodies do not point towards a dismal state of affairs.
The gross district level domestic product -- the most important indicator of economic growth -- has grown the fastest for the Telangana region, whether one includes or excludes Hyderabad, from 2000-01 to 2007-08.

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