South of the Godavari

Source: The post is based on the article “South of the Godavari” published in Business Standard on 23^rd September 2023.

Syllabus: GS 2 – Functions and Responsibilities of the Union and the States, Issues and Challenges Pertaining to the Federal Structure, Devolution of Powers and Finances up to Local Levels and Challenges Therein.

Relevance: concerns with increasing disparities between Southern and Northern states.

News: The five southern states of India (Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana) have outperformed other regions in various factors. However, these states still face concerns in their representation.

What are some of the achievements of the southern states?

Economic Growth: Southern states in India have experienced substantial economic growth and increased their share of national economic activity from just over a fifth in 1981 to 30% today.

There is a significant disparity in per capita income between southern states and economically poorer northern states.

For instance, Karnataka’s per capita income is over five times higher than Bihar, Telangana’s is four times that of Uttar Pradesh, Kerala’s is double that of Assam, and Tamil Nadu’s is twice that of West Bengal.

The economic disparity between southern India and other regions is growing due to faster economic growth, lower population growth, and higher tax revenues in the south.

The southern states contribute a significant portion of the central GST revenue but receive less than a sixth of the total central transfers to states.

Better Socio-economic Indicators: The southern states exhibit superior socio-economic indicators, including higher life expectancy, better literacy rates, and lower fertility rates compared to their northern counterparts.

In certain southern states, fertility has even dropped below the replacement rate, potentially leading to a population decline in the south, while the north continues to grow.

Better Private Sector Investments: Private-sector investments in emerging industries such as solar panels, electric vehicles, mobile phones, and electronic components are predominantly centered in the southern and western regions.

This results in migration from economically challenged eastern areas to the more affluent west and south in search of a job.

What are the concerns present with the Southern states?

First, the upcoming census and subsequent delimitation of parliamentary seats will impact the southern states of India. Currently, they have almost a quarter of parliamentary seats but only a fifth of the population.

After delimitation, they may get fewer new Lok Sabha seats due to their successful population control efforts.

This has raised concerns about the potential shift in politics, possibly favoring a more Hindi-centric language policy, with a Lok Sabha dominated by northern states.

Second, southern states are also concerned about sending more tax money to the northern and eastern states without receiving sufficient returns.

What can be the way ahead?

Southern states are governed by distinct political parties compared to the north India. Along with other concerns, differences in ruling parties could lead to a growing political divide, an increase in regional, economic, linguistic, and socio-political disparities.

Hence, to prevent this, the government should consider offering concessions like greater regional autonomy or maintaining the status quo in the Rajya Sabha.

Southern states should also acknowledge the importance of the northern market for their economic interests.