The causes of regional disputes basically lie in the interstate disparities and are briefly explained as follows:
1. There are interstate disparities in the per capita incomes of various states. Certain states like Maharashtra, Punjab, Gujarat enjoy higher levels of Per Capita Income while the BIMARU states i.e. Bihar, Madhya Pradesh and Orissa have low levels of PCI. The gap in purchasing power creates discontent.
2. There are disparities in degree of urbanization of states. A higher level of urbanization implies higher industrial development and therefore greater economic, social and political progress.
3. Disparities in Agricultural production brought about by erratic rainfall in some and heavy monsoons as well as sufficient irrigation facilities in other regions imply a huge gap in their annual produce and hence farmers in Punjab are richer to those in Rajasthan.
4. The industrial growth across states differs widely leading to better employment opportunities and greater economic progress of certain states over others.
5. The cities and townships in developed states have far more and sophisticated infrastructural facilities compared to states lagging in development.
6. The states with a rich historical background may look down upon other states which tends to stir regional conflicts. Furthermore there are prejudices and stereotypes that increase the interstate divide.