The dynamics of economic growth in India's north-eastern region in the pre- and post-reform periods

This chapter analyses the dynamics of economic growth in India’s North-Eastern Region (NER) in the pre and post reform periods through the lens of structural transformation. With the help of secondary data, decadal growth trends of the three basic sectors of the region’s economy have been estimated. During the study period, the share of primary sector was found to be shrinking, while the tertiary sector was increasing constantly. Inter-state per capita income inequality was also found to be very high during the study period. Economic growth performance of individual states like Sikkim and Tripura within the region was found to be very impressive in the post-reform era, while the state of Meghalaya was picking up slowly in the 2000s. Regression and elasticity estimates revealed that the tertiary sector turns out to be the driving force for economic growth. However, the primary sector continues to be the driving force of economic growth for the biggest and least populated state of Arunachal Pradesh.