Development Disparities and Regional Balance Strategies in Odisha: An assessment of the impact of the Western Odisha Development Council

Abstract

This study examines the persistent regional disparities in Odisha and evaluates the role of the Western Odisha Development Council (WODC), established in 1998, in addressing developmental imbalances. Using composite indices across agriculture, health, education, infrastructure, and other socio-economic variables, the research applies Sudarshan Iyengar’s methodology and Principal Component Analysis to assess inter-district disparities over a 15-year period. Findings reveal that while WODC districts recorded relatively higher growth rates compared to coastal and southern regions, their absolute development levels remain significantly lower, with none of the WODC districts advancing into the “Developed Most” category. The analysis further shows a negative correlation between backwardness indices and grant allocations, indicating that funding distribution has not adequately reflected the severity of deprivation. Districts such as Nuapada and Baudh, despite high backwardness shares, received disproportionately low grants, whereas Sundargarh, Balangir, and Kalahandi benefited more than their relative need. The persistence of disparities, coupled with uneven resource allocation, underscores the limited success of WODC in achieving balanced regional development. The study concludes that while WODC has justified its existence by accelerating growth in lagging regions, structural inequities remain entrenched, necessitating stronger policy interventions and enhanced equitable grant distribution mechanisms to ensure inclusive development across Odisha.