Blurb: Small states do not grow at a faster pace. No evidence is found to support this big claim.

The UPA government decided to make Telengana a separate state, and then decided against it, and then decided to set up a committee to study it. Since those eventful days in early December, there has been heightened interest in a very old question – do small states, or small administrative units, actually perform better in terms of governance and/or economic growth? In other words, is there an economic basis for splitting up the large state of Andhra Pradesh into two? Several commentators have felt that such a case actually exists, but the evidence presented by them has been mostly of an ad hoc nature e.g. to support their claim, they mention the small state success stories of Delhi and Haryana; but the not so good small state economic stories of Jharkhand or Assam or Punjab or Goa are ignored.