Regional Divergence among Indian States: A Sectoral Decomposition

Various studies have examined the interregional disparities for the Indian regions from different perspectives and for time zones. Sectoral composition of output and rate of growth of sectors for states play a major role in deciding the extent of convergence/divergence. Following to the foreign exchange crisis of 1991, India adopted the LPG Policy of 1991 where the Indian economy opened up and liberated itself from various private & international restrictions. Recently, in 2016 our economy faced a major change of the events after the adoption of the demonetization policy in 2016.