What question did this study set out to answer?

This research aims to evaluate the growth convergence hypothesis in Indian states and explore income patterns.

April 1, 2026Open Access

Convergence across Indian states : A re-evaluation

Key Points

This research aims to evaluate the growth convergence hypothesis in Indian states and explore income patterns.
Applied new methods for analyzing income sequences across Indian states.
Examined income dispersion trends over recent years.
Analyzed the presence of unit roots in income sequences.
Income dispersion among Indian states has widened recently.
Nearly all income sequences in Indian states exhibit unit roots.
Indicates that per capita income divergence is prevalent despite high growth in the 1990s.

Abstract

In this paper, we examine the growth convergence hypothesis within a developing country. Across Indian states, income dispersion has widened in recent years. Some new methods that are used by many researchers for studies across countries or across U.S. regions are applied, and we find that almost all income sequences in the Indian states have unit roots. This result implies that, although India achieved relatively high growth in the 1990s, per capita income across states tended to diverge, and that income dynamics within a developing country may differ from those within a developed country.

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