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December 23, 2016

Praveen Chakravarty and Vivek Dehejia Cited in Entry Tax Case Judgement

Praveen Chakravarty and Vivek Dehejia's article on economic divergence between the rich and poor states in India, gets cited in the Entry Tax Case judgement by Justice Bhanumathi.


"India is the only large country in the world today that is experiencing an economic divergence among its States and not convergence, as economic theory would posit.”


“…..Pre-1990 and post-1990 look like almost two different eras in India’s history of economic diversity among States. Economic theory would suggest that the poorer regions grow faster to catch up with the richer States to cause an eventual convergence, as is happening globally. Contrary to global experiences of narrowing disparity, both across and within nations, India actually shows trends of an exacerbating divergence among its large States, implying the richer States will continue to grow faster.


Read the full judgement here

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