The Impact of Regional Infrastructure Investment in India

The article examines the relationship between public investment in infrastructure in India and regional incomes and whether the character of this relationship is affected both by the nature of investment and the level of socio-economic development of the different regions. The possibility of using regional distribution of public investment as a policy instrument to reduce regional disparities is evaluated, with the analysis demonstrating that while there were prospects of concentrating on the varying forms of infrastructure in different categories of states at earlier points in time, the current situation calls for each region receiving investment in all of the different forms of infrastructure.