Sentinel Digital Desk
A working paper from the Economic Advisory Council to the Prime Minister (EAC-PM) reveals significant differences in the economic performance of Indian states. The report highlights how some states have surged ahead, while others lag behind in terms of per capita income and GDP contribution.
In 1991, the per capita income of five large southern states — Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu — was below the national average. Since India's economic liberalisation, these states have experienced rapid growth and are now the richest in the country.
The per capita income shown here should be read as a percentage of the national average. 100% would mean twice that of the national average. The five large southern states together accounted for approximately 30% of India's GDP in the financial year ending March 2024. Telangana, the youngest state formed in 2014, has played a key role in this growth.
Maharashtra, home to Mumbai, India’s financial capital, remains the largest contributor to the country’s GDP. However, its share has declined from over 15% a decade and a half ago to 13.3% today.
Uttar Pradesh's share of India's GDP has dropped from 14% in 1960-61 to 9.5% today. Despite being the third most populous state, Bihar’s contribution is only 4.3%.
Punjab's per capita income surged during the Green Revolution, rising to 169% of the national average by 1971. However, growth slowed by 1991, and today, the state's per capita income remains at 106%, still more than twice the national average.
Haryana has seen a sharp rise in per capita income, reaching 176.8% of the national average. Much of this growth began at the turn of the century, showcasing its increasing economic strength.