The Economic Advisory Council to the Prime Minister of India (EAC-PM) working paper titled “Relative Economic Performance of Indian States: 1960-61 to 2023-24” shows that per capita income in Bihar was lowest at 32.8 per cent of the national average in 2023-24 which has been again on the decline since 2010-11 when it was 35.4 per cent, and 33.1 per cent in 2020-21. The state of Jharkhand, carve out from Bihar, comparatively performed better. Since 2020-21 its per capita income showing improvement from 55 per cent to 57.2 per cent.

Second worst was Utter Pradesh, where per capita income in 2023-24 was just 50.8 per cent of the national average. It was 55.3 per cent in 2000-01 which fell down to 48.6 per cent in 2020-21. After the Uttarakhand was carved out of the state, income of the people of the state has been rising fast. In 2000-01, per capita income in Uttarakhand was 77.7 per cent which within a decade was able to raise it to 136.6 per cent in 2010-11, 137.2 per cent in 2020-21, and 141.3 per cent in 2023-24.

As for Jammu & Kashmir, the state which lost its statehood in 2020, is performing badly. Per capita income in 2020-21 in the state was 79.9 per cent compared to the national average income, which declined to 77.2 per cent in 2023-24.

Majority of the north eastern states were lagging behind. Per capital income of Assam was only 73.7 per cent, Manipur 66 per cent, Meghalaya 74.3 per cent, Nagaland 85.9 per cent, and Tripura 96.5 per cent of the national average income in 2023-24.

Among other states in the eastern region of the country, West Bengal’s per capita income was merely 83.7 per cent, and Odisha’s was only 88.5 per cent in 2023-24. The working paper says that the eastern part of the country remains a concern.

Per capita income in Madhya Pradesh is also on the decline. It was 80.2 per cent in 2020-21, but it stood at 77.4 per cent in 2023-24 compared to the national average. Chhattisgarh, which was carved out of Madhya Pradesh, is also declining fast. Per capital income in Chhattisgarh in 2023-24 declined to 80 per cent as against 83.4 per cent in 2020-21 compared to national average.

Rajasthan’s per capita income is slowly improving though it was only 91.2 per cent of the national average in 2023-24 as against 90.3 per cent in 2020-21.

Delhi tops among the larger states and Union Territories whose per capital income was 250.8 per cent of the national average in 2023-24, though the state is showing a declining trend since 2010-11 when it was 268.7 per cent, further declined to 253.3 per cent in 2020-21. Other top performers among the larger states in 2023-24 were Telangana 193.6 per cent, Karnataka 180.7 per cent, Haryana 176.8 per cent, Tamil Nadu 171.1 per cent, Gujarat 160.7 per cent, Kerala 152.5 per cent, Maharashtra 150.7 per cent, Uttarakhand 141.3 per cent, Andhra Pradesh 131.6 per cent, and Punjab 106.7 per cent.

Among the smaller states and UTs, top performers in per capita income in 2023-24 compared to average national income were Sikkim 319.1 per cent, Goa 290.7 per cent, Chandigarh 235.8 per cent Andaman and Nicobar Islands 152.3 per cent, Puducherry 142.3 per cent, Himachal Pradesh 127.7 per cent, Mizoram 126.9 per cent and Arunachal Pradesh 118 per cent.

The top states and UTs in terms of per capita income in 2023-24from higher to lower are Sikkim, Goa, Delhi, Chandigarh, Telangana, Karnataka, Haryana, Tamil Nadu, Gujarat, Kerala, Andaman & Nicobar, Maharashtra, Puducherry, Uttarakhand, Andhra Pradesh, Himachal Pradesh, Mizoram, Arunachal Pradesh, and Punjab. All these have income over average national income.

The worst states and UTs in terms of lowest to highest per capita income compared to national average in 2023-24 were Bihar, Uttar Pradesh, Jharkhand, Manipur, Assam, Meghalaya, Jammu & Kashmir, Madhya Pradesh, Chhattisgarh, West Bengal, Nagaland, Odisha, Rajasthan, and Tripura 96.5. All these states have below the national average income.

The study pointed out that in 1960-61, among the large states, Delhi was the wealthiest, with a per capita income more than double the national average. Maharashtra was ranked second with relative per capita income level of 133.7 percent of national average. Interestingly, West Bengal held the third-highest relative per capita income among states at that time, with an average income of about 127.5 percent of the national average, even higher than that of states like Gujarat, Karnataka, Tamil Nadu, Kerala etc. Next was Punjab with relative per capita income of 119.6 percent of national average. Gujarat followed closely at the fifth position with relative per capita income of 118.3 percent of national average. In contrast, (undivided) Bihar and Odisha had the lowest relative per capita incomes of about 70-71percent of the national average.

The study has also compiled states contribution to the national GDP. In 2023-24, Maharashtra tops the list of highest share of 13.3 per cent in GDP, followed by Tamil Nadu 8.9 per cent, Uttar Pradesh 8.4 per cent, Karnataka 8.2 per cent, and Gujarat 8.1 per cent. The top 5 states in terms of share in India’s GDP in 1960-61 were Uttar Pradesh 14.4 per cent, Maharashtra 12.5 per cent, West Bengal 10.5 per cent, Tamil Nadu 8.7 per cent, and Bihar 7.8 per cent. (IPA Service)