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But growing inter-state inequality may not be fatal to India's survival, for several reasons:The output data are not conclusive in showing any long-run divergence (although clearly capital flows--domestic as well as foreign--matter for growth);Internal labor mobility may well have some countervailing effects, which is not seen in data on output, but would be seen in figures on state incomes, if these were available;Indian states differed in their responses to reform, mostly because of disparities in their economic and social infrastructure--particularly education and health--at the time reforms were initiated.
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