Economic Performance of Indian States – Maharashtra Top, Sikkim tops NE, Assam 5th poorest

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Economic Performance of Indian States – Maharashtra Top, Sikkim tops NE, Assam among laggards

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As per the Economic Advisory Council report to the Prime Minister released on September 18, 2024, Western India (Maharashtra, Gujarat, Goa) continues to outperform other regions. Punjab and West Bengal fallen from grace, and western India continues to power the Indian economy. Southern Indian states fared better in-terms of GDP contribution as well as having higher-than-average per capita incomes.

Richest Indian States in Economic Performance of Indian States

  1. Delhi – 250 per cent of per capita income national average
  2. Telangana- 193 per cent of per capita income national average
  3. Karnataka – 180 per cent of per capita income national average
  4. Haryana – 178 per cent of per capita income national average
  5. Delhi – 171 per cent of per capita income national average

 

Highlights of Economic Performance of Indian States – Economic Advisory Council report

  • Assam’s per capita income was 103 per cent of the national average in 1960-61, saw a decline to 61.2 per cent by 2010-11, before rising to 73.7 percent in 2023-24.
  • Among small States, Sikkim and Goa have demonstrated remarkable improvements.
     

  • Sikkim is the star of north-eastern economies. Over the last two decades, it’s per capita income has surged from 100 percent of the national average in 2000-01 to 320% in 2023-24. 
  • Maharashtra remains India’s top GDP contributor, but its share declined to 13.3% from more than 15% earlier. However, its per capita income rose to 150.7% of the national average by March 2024.
  • Gujarat’s share remained steady until 2000-01, then rose from 6.4 percent to 8.1 percent by 2022-23. By 2023-24, Gujarat’s per capita income reached 160.7 percent of the national average.
  • Delhi and Haryana consistently performed well with Delhi having one of the highest per capita incomes.
  • Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu collective account for 30% of India’s GDP.
  • Odisha showed a marked improvement, shedding its image as a laggard.
  • Haryana saw steady growth. Its GDP share now surpasses Punjab’s, with a relative per capita income that’s 176.8 percent of the national average in 2023-24.

 

Poorest Indian States in Economic Performance of Indian States

  1. Bihar – 32.8 per cent of per capita income national average
  2. Jharkhand – 57.2 per cent of per capita income national average
  3. Uttar Pradesh – 50.8 per cent of per capita income national average
  4. Manipur – 66 per cent of per capita income national average
  5. Assam – 73.7 per cent of per capita income national average

 

Laggard States

  • Uttar Pradesh’s share in India’s GDP fell from 14% in 1960-61 to 9.5%. In the 1960s, undivided Uttar Pradesh was India’s largest state economy, holding 14.4 percent of the national GDP in 1960-61. By 2020-21, UP’s GDP share stabilized at 8.2 percent, rising slightly to 8.4 percent in 2023-24.
  • Share of undivided Bihar was 7.8 percent in 1960-61. It then declined for four decades until 2000-01, before it stopped deteriorating. It has since then stabilized around 4.3-4.4 percent for undivided Bihar.
  • West Bengal saw a steady decline from being one of India’s top contributors, accounting for 10.5% of the GDP in 1960-61 to just 5.6% now. Its per capita income, once at 127.5% of the national average, dropped to 83.7%, falling below Rajasthan and Odisha.
  • Punjab’s share in India’s GDP plateaued at 4.3 per cent until 1990-91. Thereafter, a decline started and Punjab’s share in the national GDP was only 2.4 per cent in 2023-24. Punjab’s per capita income, which peaked at 169 per cent of the national average in 1970-71, dropped to 106.7 percent in 2023-24.