Growth and development in indian states

Abstract

The widening disparities in human development outcomes across Indian states raise crucial newlinequestions about the interplay between economic, institutional, financial, and regulatory newlinefactors. This study investigates the structural determinants of human development in India newlinethrough a longitudinal panel analysis of 28 states over the period 1990 2020. newlineDrawing on the Capability Approach and New Institutional Economics, the research newlineintegrates variables such as economic growth (GSDP per capita), institutional quality newline(governance indices), financial inclusion (access to formal finance), and economic freedom newline(market openness) to model their influence on human development outcomes, as measured by newlinethe Human Development Index (HDI). newlineEmploying fixed and random effects panel regressions, convergence diagnostics, and newlineStructural Equation Modeling (SEM), the study reveals that while economic growth is a newlinenecessary driver, institutional capacity and financial inclusion play critical roles in mediating newlinethe relationship between growth and development. newline