Inequality, income Distribution and Growth in Maharashtra in the 2000s

The paper analyses the inter-district inequality of per capita incomes in Maharashtra for the period 2001-2009 and finds that inter-district inequality rose for the period 2001-05 and subsequently declined. Though it has been rising, it is at a lower level than that observed for 2001-05. This has been accompanied by shifts in the relative ranking of different districts across the income distribution. Data does not point to the convergence of per capita incomes across districts. The historical composition of incomes, in particular the share of the tertiary sector in GDP, is an important predictor of divergence in districts per capita incomes.