In India, Tamil Nadu, Maharashtra and Gujarat have the potential to grow as the fastest growing Chinese coastal provinces of Fujian, Zhejiang and Jiangsu. GDP growth in the hinterland has lagged behind the coastal states by several percentage points per year.
There is a vast amount of economic reform that can be carried out to improve conditions in rural India, especially in the Gangetic valley.
There is no reason for expensive and counter-productive charity for the northern states, and still less any case for holding back the fast-growing coastal regions. The government's commitment, both at the national and state level should be that every village will be assured at least clean water, a road to the regional market, reliable power, and minimal telephone service; but that every village will be responsible for covering the commercial costs of those services on a normal user-fee basis.
In particular, Bihar, UP, Orissa and Rajasthan are in dire need of reform. Bihar is the most underdeveloped state of India, perhaps, followed by Uttar Pradesh.
