Also local patriotism can help people overcome divisive loyalties to caste or religious communities.” Though India did witness one major regional movement with aspirations of separation in the form of DMK in Tamil Nadu, by and large a sense of cultural domination and discrimination has been overcome by the Indian nation by emphasising cultural diversity. Nonetheless, quite a few regional disputes do exist and they have the potential of stirring interstate hostility. There has been friction between different states over the sharing of river waters. This has been between Tamil Nadu and Karnataka, Karnataka and Andhra and Punjab and Rajasthan. Boundary disputes have risen but of the formation of linguistic states. Construction of irrigation and power dams has created such conflicts.
But while these disputes tend to persist for a long time and occasionally arouse passions, they have on the whole remained within a narrow limit. However, regional imbalances persist as a major challenge to the Indian nation in the form of economic disparities between different regions. Colonialism had created modern economic infrastructure according to its needs for the market and raw materials. As a result some regions remained completely backward. Only a few enclaves around Calcutta, Bombay and Madras had undergone modern industrial development.
Attempts were made in the post-independence phase to tackle these disparities through a combined effort of allocation of resources to the backward states through planning and disbursement of grants by the Finance Commission. But regional disparities have persisted.