India's richest and poorest states revealed: South rises, but what happened to Bengal?
The report also touches on Maharashtra, which remains India’s top contributor to GDP, though its share has declined from over 15% to 13.3% in recent years. Despite this, Maharashtra’s per capita income has risen to 150.7% of the national average by March 2024.
- Sep 18, 2024,
- Updated Sep 18, 2024 8:34 AM IST
A report by the Economic Advisory Council to the Prime Minister (EAC-PM), released Tuesday, highlighted that Southern states have surged ahead post-liberalisation, significantly contributing to India's GDP and boasting higher-than-average per capita incomes.
While these states—Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu—now collectively account for 30% of India’s GDP, other regions have struggled to keep pace, particularly the eastern states.
One of the most curious cases in the report is West Bengal, which has seen a steady and puzzling decline despite its early economic strength. Once one of India’s top contributors, with 10.5% of the national GDP in 1960-61, West Bengal's share now stands at a diminished 5.6%.
The state’s per capita income, which was once 127.5% of the national average, has dropped to 83.7%, falling below even traditionally lagging states like Rajasthan and Odisha.
This decline, despite its historical advantages and strategic maritime location, raises questions about the policies and factors that have led to its persistent underperformance.
"West Bengal has experienced a continuous decline in its relative economic performance over several decades," the report notes, highlighting it as an exception among maritime states, which have generally fared better.
While Bihar’s position has stabilised in recent decades, it remains far behind other states in terms of growth, necessitating a faster pace to catch up. Conversely, Odisha has shown marked improvement, shedding its image as a laggard.
The report also touches on Maharashtra, which remains India’s top contributor to GDP, though its share has declined from over 15% to 13.3% in recent years. Despite this, Maharashtra’s per capita income has risen to 150.7% of the national average by March 2024.
In the north, Haryana and Delhi have consistently performed well, with Delhi maintaining one of the highest per capita incomes. The contrast between Punjab and Haryana is striking, as Punjab, once a beneficiary of the Green Revolution, has seen its relative per capita income decline post-2000, while Haryana has surged ahead economically.
The report suggests further investigation into this divergence, highlighting how Haryana, once behind Punjab, has now overtaken it in key economic metrics.
The poorest states, such as Uttar Pradesh and Bihar, have also seen their contributions to India’s GDP dwindle. Uttar Pradesh’s share dropped from 14% in 1960-61 to 9.5%, while Bihar, despite being the third-most populous state, only contributes 4.3%.
A report by the Economic Advisory Council to the Prime Minister (EAC-PM), released Tuesday, highlighted that Southern states have surged ahead post-liberalisation, significantly contributing to India's GDP and boasting higher-than-average per capita incomes.
While these states—Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu—now collectively account for 30% of India’s GDP, other regions have struggled to keep pace, particularly the eastern states.
One of the most curious cases in the report is West Bengal, which has seen a steady and puzzling decline despite its early economic strength. Once one of India’s top contributors, with 10.5% of the national GDP in 1960-61, West Bengal's share now stands at a diminished 5.6%.
The state’s per capita income, which was once 127.5% of the national average, has dropped to 83.7%, falling below even traditionally lagging states like Rajasthan and Odisha.
This decline, despite its historical advantages and strategic maritime location, raises questions about the policies and factors that have led to its persistent underperformance.
"West Bengal has experienced a continuous decline in its relative economic performance over several decades," the report notes, highlighting it as an exception among maritime states, which have generally fared better.
While Bihar’s position has stabilised in recent decades, it remains far behind other states in terms of growth, necessitating a faster pace to catch up. Conversely, Odisha has shown marked improvement, shedding its image as a laggard.
The report also touches on Maharashtra, which remains India’s top contributor to GDP, though its share has declined from over 15% to 13.3% in recent years. Despite this, Maharashtra’s per capita income has risen to 150.7% of the national average by March 2024.
In the north, Haryana and Delhi have consistently performed well, with Delhi maintaining one of the highest per capita incomes. The contrast between Punjab and Haryana is striking, as Punjab, once a beneficiary of the Green Revolution, has seen its relative per capita income decline post-2000, while Haryana has surged ahead economically.
The report suggests further investigation into this divergence, highlighting how Haryana, once behind Punjab, has now overtaken it in key economic metrics.
The poorest states, such as Uttar Pradesh and Bihar, have also seen their contributions to India’s GDP dwindle. Uttar Pradesh’s share dropped from 14% in 1960-61 to 9.5%, while Bihar, despite being the third-most populous state, only contributes 4.3%.