---

Even before the economic recession in the US its growth had slowed down. The US till recently was the economy which was pulling the rest of the world along the growth path has stopped doing so. India (and China both of which have high economic growth rates) is being called a superpower which is expected to pull the rest of the world along the growth path and out of the recession. However, an Analysis of the Competitive Advantage Among States in India shows that like in China it is only the coastal States in the South and West (with the exception of the states near the National Capital Region) with lower rates of population growth, higher urbanization, better education, etc. which are growing economically fast. The rest of India without these advantages is not able be part of this high growth economy. The representation of the different forces in the Indian economy requires a significant modification of the Five Forces Model of Porter and its modifications by others. As a result of this rapid growth in one part of India almost three fourth s of the Foreign Direct Investment is going to these states aggravating the imbalance. The Government of India is not able to do much about it.

---