Increasing Disparities: Per Capita Income of States in India

By: Damini Mehta

Analyzing the Per Capita NSDP at current prices for 2022-23, states like Sikkim, Delhi, Telangana and Karnataka, show higher income levels, while Bihar, Uttar Pradesh, Jharkhand, and Meghalaya exhibit the lowest income levels across states.

The latest data on Per Capita Income, as provided by the Ministry of Statistics & Programme Implementation, reveals significant variations among Indian states and Union Territories. The Per Capita Net State Domestic Product (NSDP) at both current and constant (2011-12) prices reflects the economic disparities across regions. This article delves into the trends observed from 2020-21 to 2022-23, shedding light on the factors contributing to these differences and the government's initiatives towards inclusive growth.

The data showcases the range of Per Capita Income across states at both current and constant prices over the three-year period. In 2020-21, the range at current prices was Rs. 42,083 to Rs. 4,31,351, which widened in 2021-22 to Rs. 47,498 to Rs. 4,72,070, and further expanded in 2022-23 to Rs. 54,111 to Rs. 5,19,964. Similarly, at constant prices, the disparities are evident with ranges of Rs. 26,820 to Rs. 2,98,527, Rs. 28,679 to Rs. 3,10,201, and Rs. 31,280 to Rs. 2,71,019 for the respective years.

The differences in Per Capita Income among states are attributed to varying levels of economic development. States with higher income levels often have robust industrialization, infrastructure, and diverse economic activities. On the other hand, those with lower income levels may face challenges related to agriculture, education, and healthcare. The disparities highlight the need for targeted policies to address specific challenges in each state.

Analyzing the Per Capita NSDP at current prices for 2022-23, states like Sikkim, Delhi, Telangana and Karnataka, show higher income levels, while Bihar, Uttar Pradesh, Jharkhand, and Meghalaya exhibit the lowest income levels across states. The trends persist at constant prices, emphasizing the need for targeted interventions in specific regions to uplift economic conditions. However, the data fails to give a complete picture as per capita income for several states and union territories such as Arunachal Pradesh, Goa, Gujarat, and Maharashtra amongst others is not available.

Per capita income in top ranking states like Sikkim and Delhi (Rs. 4.50-5 lakh) is nearly 10 times the per capita income of the lowest ranking states such as Bihar and Uttar Pradesh (Rs. 54,000 and 83,000). The data on Per Capita Income across Indian states and Union Territories reflects a dynamic economic landscape. The disparities underscore the importance of targeted policies and initiatives for inclusive growth.

While the government's efforts towards inclusive growth are commendable, challenges persist. Some states continue to face economic disparities, hindering progress towards balanced development. Identifying the unique challenges each state encounters and tailoring policies accordingly can unlock opportunities for growth and prosperity.