The next section deals with the spatial inequalities in development.

SPATIAL INEQUALITIES

Inclusive growth framework gives special importance to regional inequalities. Box 2.5 shows the differences in Human Development Index of different states. The box exhibits that in terms of HDI Kerala is at the top among the Indian states and Madhya Pradesh is at the bottom. Further, there are both high and low HDI areas (districts) in each state. Interestingly, Kerala has the least inter-district variation in HDI meaning thereby that all the districts of Kerala have uniformly benefited from development. On the other hand Maharashtra has the highest inter-district diversity: it has one district with perfect value of HDI but also a district where HDI is lower than that for any other district in the country. This high regional diversity in development has serious social and political implications for the country.