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The Committee noted that while industry is a State subject, the Central Government's initiatives are vital for industrial development of all states.

  • Earlier, the Economic Survey 2024-25 also highlighted significant disparities in industrial development across states. 

Uneven Industrial Growth in States

  • While states like Gujarat, Uttarakhand, and Himachal Pradesh effectively leverage industrial dependence, northern and eastern states show low industrialization levels. 
  • Manufacturing is unevenly distributed, with Tamil Nadu leading in factory concentration and Bihar having an extremely low presence.

Reasons for Uneven Industrial Growth in All States

  • Historical Factors: Regional imbalances started during the British regime, concentrating development in areas like West Bengal and Maharashtra
  • Geographical Factors: Difficult terrain (e.g., Himalayan and North-Eastern states) also impedes growth.
  • Inadequate Infrastructure: Power, transport, and land availability vary across states, hindering industrial growth in regions such as the North-Eastern Region and Bihar.
  • Policy & Planning Disparities: The Green Revolution's benefited few states like Punjab and Haryana, exacerbating imbalances.

Way Forward

  • The Economic Survey 2025 emphasized balanced industrial policies, deregulation, and infrastructure improvements for sustainable growth.
  • Effective Centre-state cooperation is crucial, with the Centre supporting lagging regions in infrastructure, education, skill development, and credit.
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