Policy interventions, he said, are essential to further reduce these gaps. While there is fiscal equalisation in terms of outcomes like education, health, and consumption, among others, income inequality across states has increased.

“This has been attributed to an increase in profit-driven private investment.”

He called for addressing appropriate policy measures to arrest these trends.

Former Finance Minister Dr T M Thomas Isaac, who moderated the session, remarked that equity must be the guiding principle in resource allocation to states.

He observed that disparities in per capita income and private investment across states are widening. He added that backward states could adopt Kerala’s model in several areas to improve their performance.  

The event was organised by the Gulati Institute of Finance and Taxation (GIFT). Director Prof. K.J. Joseph delivered the welcome address. Among those present were I.S. Gulati’s wife, Leela Gulati, Ajay Narayan Jha, Dr Mridul Eapen, Dr A.V. Jose, Ritin Roy, and Professor Pulin Nayak.  Dr Renjith PS, assistant professor, delivered the vote of thanks.