This paper is an attempt to explain regional disparities in India’s industrial growth using
the theoretical framework on economies of scale, technical progress and cumulative
growth differences. The paper finds that among Indian States, some, particularly the
western States, have achieved fast output growth and, consequently, realized economies
of scale; technical progress too has been rapid in these States. They have moved ahead in
India’s factory sector, leaving some other States, particularly the eastern States, farther
behind. Thus a cumulative cycle of regional differences arises in India’s industrial growth,
in which realisation of scale economies is increasingly becoming an important
determinant.
Key words: Economies
