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The Making of Miracles in Indian StatesAndhra Pradesh, Bihar, and Gujarat$
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Arvind Panagariya and M. Govinda Rao

Print publication date: 2015

Print ISBN-13: 9780190236625

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:oso/9780190236625.001.0001

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Andhra Pradesh: Setting the Stage

Andhra Pradesh: Setting the Stage

(p.21) Chapter 2 Andhra Pradesh: Setting the Stage
The Making of Miracles in Indian States

Mudit Kapoor

Rahul Ahluwalia

Oxford University Press

This chapter highlights the bold and ambitious reforms that were initiated by Chandrababu Naidu, Chief Minister of Andhra Pradesh. These reforms led to a rapid economic transformation of the state from the mid-1990s to 2012. The emphasis on investment and growth following liberalization resulted in acceleration in growth and rapid decline in poverty. When one compares the states of Uttar Pradesh and Andhra Pradesh, which were very similar in terms of rural and urban poverty prior to the reforms, it is evident that post-liberalization the economic performance of the states diverged very dramatically. From being one of the poorest states in the 1990s Andhra Pradesh is became one of the least poor states in 2012. In comparison, Uttar Pradesh has lagged.

Keywords:   reforms, liberalization, growth, poverty, Uttar Pradesh, Andhra Pradesh

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