A working paper titled titled ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’ was released by the Economic Advisory Council to the Prime Minister (EAC-PM).
Key points
- According to the paper, the western and southern regions of India have performed notably better than other parts of the country from 1960-61 to 2023-24.
- The five large southern states (Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu) together accounted for approximately 30% of India’s GDP in the financial year ending March 2024.
- The per capita income in the five large southern states was less than the national average in 1991. However, since the historic liberalisation, these five states have grown by leaps and bounds.
- The relative per capita income in Telangana is now 193.6% of the national average in 2023-24, while Karnataka, Tamil Nadu, and Kerala have per capita incomes 181%, 171%, and 152.5% of the national average, respectively
- Maharashtra remains the highest contributor but it’s relative share in India’s GDP has declined in the last decade. The state accounted for over 15% of India’s GDP about a decade and half earlier. Now, it’s 13.3%. However, the state doesn’t rank in the top five in terms of per capita income.
- The per capita income of Maharashtra has grown to 150.7% of the national average at the end of March 2024, compared to 133.7% sixty three years ago.
- Gujarat’s share remained at broadly the same levels until 2000- 01, before beginning to increase rapidly- from 6.4% in 2000-01 to 8.1% in 2022-23.
- Uttar Pradesh’s contribution to India’s GDP is down to 9.5%, from 14% in 1960-61. Bihar makes for 4.3%, despite being the third most populous state in the country, after Uttar Pradesh and Maharashtra, according to the 2011 census.
- Punjab’ per capita income in the state was 169% over the national average in 1971 which has declined to 106%, However, it is still more than twice that of the national average. Haryana has seen an impressive rise in per capita income to 176.8%, bulk of the rise started at the turn of the century.
- West Bengal, which held the third-largest share of national GDP at 10.5 per cent in 1960-61, now accounts for only 5.6 per cent in 2023-24. West Bengal’s per capita income was above the national average in 1960-61 at 127.5%, but its growth failed to keep pace with national trends. As a result, its relative per capita income declined to 83.7% in 2023-24, falling below that of even traditionally laggard states like Rajasthan (91.2) and Odisha (88.5).
