Skip to main content

Refined analysis by top economist says Gujarat underperforms in social sectors

Prajul Bhandari
By Rajiv Shah
A new Planning Commission-sponsored study, “Refining State Level Comparisons in India”, by Pranjul Bhandari, economist at the Office of the Chief Economic Advisor in the Ministry of Finance, Government of India, and a chief brain behind the Economic Survey 2012-13, says that her “refined” analysis has found that Gujarat stands 16th in health index, 12th in education index and 11th in infrastructure index among 21 major Indian states. Bhandari has arrived at these figures on the basis of a new methodology she adopts by “refining” raw data in order to find out how well do states perform in the context of the resources at their disposal.
Bhandari believes that the method so far adopted only provides what “raw” results. They merely “conform with the already well-established findings of several other studies that states such as Kerala are amongst the best performing while the so-called BIMARU states (Bihar, MP, Rajasthan and UP) are laggards.” However, she thinks, “While this is true on an absolute level, it does not reveal the performance conditional on state level factors.”
Hence the need to “refine” the analysis by “controlling” the three indices for per capita consumption” in order to put states on “a level playing field and for gauging how well the states have used available resources.” She underlines, “Our ‘refined’ analysis throws up rankings which are quite different from the ‘raw’ analysis. For instance, we find clear differentiation between the BIMARU states – while Orissa, Bihar and Chhattisgarh are amongst the best performers, Uttarakhand, Rajasthan and Jharkhand are amongst the worst.”
The “refined” analysis suggests that “while the performance of Himachal Pradesh has been most impressive, Gujarat is amongst the worst on health, Maharashtra on infrastructure, and Haryana on both.” Pointing out that on all three sectors – health, education and infrastructure – are “complex”, she says, “Given the sheer size of resources needed for scale up, each of these three needs effort from both the public and private sectors. The public sector for instance not only needs to provide resources, but also create a policy environment conducive for scale-up.”
The methodology Bhandari adopts is as follows: She ranks “the states and gauge if performance across the three sectors are correlated or divergent”, and compares states “for both absolute performance as well as for performance after controlling for consumption levels.” She stresses, “The latter analysis can be associated with governance – how well the resources at the state’s disposal have been used for progress in the critical sectors of health, education and infrastructure.”
Bhandari looks at the ranking performance in the context of per capita consumption. “This puts the states on a level playing field before comparisons are made. For instance, Bihar’s underperformance on many fronts could partly be explained by lower resources at its disposal which makes it difficult for the state to invest more on health and education. Our analysis controls for this factor while evaluating the state’s performance in delivering key services”, she says.
If one uses the established method, the “raw” ranking suggests that –
• The first tier states comprising Kerala, Goa, Himachal, Punjab, Tamil Nadu, Maharashtra and Haryana are the best performers. However, performance of Maharashtra in infrastructure and that of Haryana in health is markedly poor.
• The second tier states comprising West Bengal, Uttarakhand, Karnataka, Andhra, Gujarat, J&K and Orissa are the medium performers. Orissa stands out for worse performance on infrastructure, compared to its performance in health and education.
• The third tier states comprising Rajasthan, Assam, MP, Chattisgarh, UP, Bihar and Jharkhand are the laggards, mostly comprising of the BIMARU states.
However, she states, “While the analysis above is insightful, it only reiterates the well known fact that states like Kerala have done well on health and education, while the BIMARU states have been laggards.” What it overlooks is the fact that “states with lower resources at their disposal are likely to underperform.” Hence the need to “refine our analysis by creating a level playing field before comparing states.”
This is done by adjusting “the three indices for monthly per capita consumption (MPCE).” She explains, while “GDP per capita and consumption per capita broadly measure the same thing and are tightly correlated, consumption has the benefits of reflecting the actual purchasing power and including income generated from outside the state (i.e. inter state remittances).”
The ‘refined’ analysis throws up the following observations –
• Good performers - Himachal Pradesh, Kerala, Orissa, Tamil Nadu and Bihar have been the best performers across all the three sectors. West Bengal and Chhattisgarh have also been amongst the best off states.
• Laggards - Uttarakhand, Rajasthan, J&K and Jharkhand have been laggards across all the three sectors.
• Average performers - The remaining middle ranking states have varied performance. Goa, Punjab and Karnataka have done well in health and infrastructure, but underperformed in education. On the other hand, Haryana, Andhra, Gujarat, Assam, MP, UP and Maharashtra have each underperformed in two of the three sectors.
Bhandari concludes, “The refined analysis of states throws up important results on which states are making best use of the resources in hand to provide health, education and infrastructure services to its people. It is therefore a useful tool in identifying states whose experiments are working, and which can potentially be replicated by others. While convergence in income levels may take its own time, this analysis will help policy experts, interested observers and even voters to evaluate the success of its state and government.”
Refined vs raw rankings


Comments

TRENDING

Academics urge Azim Premji University to drop FIR against Student Reading Circle

  By A Representative   A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.

'Policy long overdue': Coalition of 29 experts tells JP Nadda to act on SC warning label order

By A Representative   In a significant development for public health, the Supreme Court of India has directed the Food Safety and Standards Authority of India (FSSAI) to seriously consider implementing mandatory front-of-pack warning labels on pre-packaged food products. The order, passed by a bench of Justices J.B. Pardiwala and K.V. Viswanathan on February 10, 2026, comes as the Court expressed dissatisfaction with the regulatory body's progress on the issue.

When tourism meets tribal law: The Vanajangi dispute in Andhra Pradesh

By Palla Trinadha Rao   A writ petition presently before the High Court of Andhra Pradesh has brought into focus an increasingly important question in the governance of tribal regions: can eco-tourism projects in Scheduled Areas be implemented without the consent of the Gram Sabha? The case concerns the establishment of a Community Based Eco-Tourism centre at Vanajangi village in Paderu Mandal of Alluri Sitarama Raju District, a region located within the Scheduled Areas of Andhra Pradesh. 

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative   The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress. 

Vaccination vs screening: Policy questions raised on cervical cancer strategy

By A Representative   A public policy expert has written to Union Health Minister J. P. Nadda raising a series of concerns regarding the national Human Papillomavirus (HPV) vaccination campaign launched on February 28 for 14-year-old girls.

The new anti-national certificate: If Arundhati Roy is the benchmark, count me in

By Dr. Mansee Bal Bhargava*   Dear MANIT Alumni Network Committee, “Are you anti-national?” I encountered this fascinating—some may say intimidating—question from an elderly woman I barely know, an alumna of Maulana Azad College of Technology (MACT, now Maulana Azad National Institute of Technology - MANIT), Bhopal, and apparently one of the founders of the MACT (now MANIT) Alumni Network. The authority with which she posed the question was striking. “How much anti-national are you? What have you done for the Alumni Network Committee to identify you as anti-national?” When I asked what “anti-national” meant to her and who was busy certifying me as such, the response came in counter-questions.

The ultimate all-time ODI XI: A personal selection of icons across eras

By Harsh Thakor* This is my all-time best XI chosen for ODI (One Day International) cricket:  1. Adam Gilchrist (W) – The absolute master blaster who could create the impact of exploding gunpowder with his electrifying strokeplay. No batsman was more intimidating in his era. Often his knocks decided the fate of games as though the result were premeditated. He escalated batting strike rates to surreal realms.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Minority concerns mount: RTI reveals govt funded Delhi religious meet in December

By Syed Ali Mujtaba*  Indian Muslims have expressed deep concern over what they describe as rising hate speech and hostility against their community under the BJP-led government in India. A recent flashpoint was the event organised by Sanatan Sanstha titled “Sanatan Rashtra Shankhnad Mahotsav” in New Delhi on 13–14 December 2025.