Regional variation in fertility rates can have significant impacts on economic development across different states in India. Here are a few key ways this influence manifests:

1. Demographic Dividend: States with lower fertility rates may experience a demographic dividend, where a larger proportion of the population is of working age compared to dependents (children and elderly). This can potentially boost economic growth if the working-age population is effectively employed and contributes to the economy. Conversely, states with higher fertility rates may face a higher dependency ratio, which can strain resources and impede economic growth.
2. Resource Allocation: States with higher fertility rates often have younger populations, which can lead to increased demand for resources like education and healthcare. This can divert resources away from other critical areas such as infrastructure development or investment in industries. Lower fertility rates, on the other hand, can lead to a shift in focus towards investing in technology and infrastructure, potentially driving more rapid economic development.
3. Labor Market Dynamics: Regions with varying fertility rates will experience different labor market dynamics. States with higher fertility rates may face challenges in creating enough job opportunities for a growing young population. If not managed well, this can lead to higher unemployment or underemployment, which can negatively affect economic growth. States with lower fertility rates might have an older workforce, which could impact productivity and innovation if there is insufficient younger talent to drive growth.
4. Urbanization and Infrastructure: Higher fertility rates can contribute to rapid urbanization, as families move to cities in search of better opportunities. This can strain existing infrastructure and public services. In contrast, states with lower fertility rates may have slower urban growth, allowing for more planned and sustainable development, although they might also face challenges related to aging infrastructure and a shrinking labor force.
5. Human Capital Development: States with lower fertility rates often invest more in quality education and healthcare per capita, given the smaller number of dependents. This can lead to a more skilled and healthier workforce, which is beneficial for economic development. States with higher fertility rates might struggle to provide the same level of services due to larger population sizes, potentially impacting human capital development and economic prospects.
6. Policy and Planning: Regional governments need to tailor economic policies and planning according to their fertility rates. States with high fertility rates might focus on policies to improve family planning and education, while those with low fertility rates may need to address issues related to an aging population and encourage higher birth rates or immigration.

Overall, the relationship between fertility rates and economic development is complex and influenced by various factors including government policies, economic strategies, and social dynamics.