Gujarat Leads in Per Capita Income

Context:

Recent data tabled in Parliament highlighted state-wise per capita Net State Domestic Product (NSDP), revealing economic divergence among Indian states.

Net State Domestic Product (NSDP) per capita is a key measure of economic prosperity at the state level, calculated at constant prices (2011–12) to factor out inflation and enable real income comparison over time.
Gujarat emerged as the most prosperous large state with a per capita NSDP of ?1.96 lakh in 2023–24, followed by Karnataka, Haryana, and Tamil Nadu.
India's national average per capita income in 2023–24 was ?1.09 lakh at 2011–12 constant prices.
Southern and Western states (Gujarat, Karnataka, Tamil Nadu) maintained economic dominance due to robust industrial, services, and IT sectors, while agriculturally rich states like Punjab and Haryana also performed well.
BIMARU states — Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh — continue to lag. Notably:
- Bihar had the lowest per capita NSDP at ?32,227, with an annual growth rate of just 3% over 12 years.
- Madhya Pradesh, although a former BIMARU state, recorded 8% annual growth, overtaking some richer states in growth momentum.
Bifurcation of states has had a notable impact:
- Post-2000 bifurcation, Jharkhand outperformed Bihar in per capita income.
- Telangana has outpaced Andhra Pradesh in relative income; Uttarakhand fares far better than Uttar Pradesh.
Relative per capita income compares a state's per capita income to the national average:
- In 2023–24:
  - Telangana: 1.94 times national average
  - Andhra Pradesh: 1.32 times
  - Uttarakhand: 1.41 times
  - UP: 0.51 times
  - MP: 0.77 times
  - Chhattisgarh: 0.8 times
  - Bihar: 0.29 times
This divergence in income levels reflects regional inequalities, with policy implications for fiscal transfers, development planning, and federal equity.