India’s income roadmap: Gujarat emerges frontrunner; MP improves as southern, western states consolidate earnings dominance

New Delhi, Aug 7 Gujarat has emerged as the frontrunner among India’s large states, recording a per capita Net State Domestic Product (NSDP) -- a proxy for average income -- of Rs 1.96 lakh.

Karnataka followed closely at Rs 1.92 lakh, trailed by Haryana at Rs 1.83 lakh and Tamil Nadu at Rs 1.80 lakh.

Gujarat, Karnataka and Tamil Nadu each contribute between 8 and 9 per cent to the national GDP.

Yet, Maharashtra's per capita income growth has lagged behind its peers over the past decade, suggesting a decoupling between aggregate output and individual prosperity.

The broader economic geography of India reveals a pronounced tilt towards the West and South, with states such as Maharashtra, Gujarat, Karnataka and Tamil Nadu consistently outperforming others. Madhya Pradesh, by contrast, has demonstrated a more encouraging trajectory.

Its per capita NSDP rose from Rs 38,497 in 2011–12 to Rs 67,300 in 2023–24, reflecting an average annual growth rate of 4.8 per cent.

In a recent parliamentary session, Union Minister of State for Finance Pankaj Chaudhary presented state-wise data on per capita income.

These figures are calculated at constant 2011–12 prices -- a methodological choice that strips away inflationary distortions and allows for a more accurate assessment of real income growth over time.

This pace of expansion surpasses that of traditionally wealthier states such as Maharashtra (4.3 per cent) and Haryana (4.6 per cent).

Karnataka and Tamil Nadu credited their elevated figures to effective governance and sustained policy interventions.

For context, India’s national per capita income in 2023–24 stood at Rs 1.09 lakh at constant prices, and Rs 1.89 lakh at current prices.

Northern states such as Punjab, Haryana, Uttarakhand and Himachal Pradesh also demonstrate relatively strong income levels.

This regional divergence is largely attributable to the sustained growth of the industrial, services and information technology sectors in the South and West, while agricultural productivity has underpinned the performance of states like Punjab and Haryana.

In terms of overall contribution to India’s GDP, Maharashtra has historically held the top position, accounting for approximately 13 per cent of national output.

Although data for the fiscal year 2024–25 is currently available for only 16 of India’s 28 states, the complete dataset from 2023–24 offers a revealing snapshot of regional prosperity.

Since 2011–12, Gujarat has consistently led in per capita NSDP, with Karnataka maintaining a close second.

Tamil Nadu has made notable strides in recent years, overtaking Haryana and narrowing the gap with Telangana.

In 2023–24, Telangana's per capita income was 1.94 times the national average, compared to Andhra Pradesh’s 1.32.

Similarly, Uttarakhand's income stood at 1.41 times the national level, while Uttar Pradesh lagged at 0.51. Chhattisgarh recorded a ratio of 0.8, slightly ahead of Madhya Pradesh's 0.77.

Notably, Madhya Pradesh has managed to rebound from the economic strain after bifurcation. Its relative income, which hovered around 60–65 per cent of the national average in 2000–01 and 2010–11, has since improved.

The state's experience underscores the possibility of economic advancement even in agriculture-dependent regions, provided there is sustained investment and policy focus.

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