Regional disparity of covid-19 infections: an investigation using state-level Indian data

Using the state-level panel data for India, we establish that Covid infections are clustered in more urbanized, and prosperous states. Poverty lowers cases showing evidence of herd immunity of poor which stands in sharp contrast with the developed part of the world. Our dynamic panel regression results indicate that Covid infections are persistent across states and unlocking has aggravated the infections. We also find that richer and more urbanised states with better health infrastructure and governance perform more tests. The policy lesson from this exercise is that the authorities should monitor immunization and Covid protocols in densely populated urban areas.