State Wise Per Capita Income in India (2024) | Full List & Analysis

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India’s economic landscape is a complex mosaic of varied growth rates, industrial development, and income distribution. The recently released estimates of state wise per capita income in India (2024) reveal a striking disparity across states and union territories. With an average per capita income for the country pegged at $2677, the gap between the top-performing and the lagging states is both alarming and insightful.

This article presents a detailed look at the per capita income of each state, examines the factors contributing to economic disparities, and offers a thorough analysis of the top five and bottom five states based on their per capita GDP.

What is Per Capita Income?

Per capita income is the average income earned per person in a specific region during a given time period. It is calculated by dividing the Gross State Domestic Product (GSDP) by the population. It serves as an important indicator of the economic well being of the population.

State Wise Per Capita Income in India (2024)

Below is the full list of per capita income by Indian state and union territory for 2024:

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Note: Figures are based on projections from RBI’s 2021–22 data and adjusted for inflation and growth in 2024.

Analyzing the Top 5 States by Per Capita Income

Let’s now explore the top five performers in the state wise per capita income in India (2024) and understand the key drivers of their economic strength.

1. Sikkim – $8691

Sikkim ranks number one in state wise per capita income in India. With a per capita income of $8691, this northeastern state has managed to achieve remarkable economic performance despite its small size.

Reasons for high income

• Hydropower generation is a major revenue source.
• High investment in eco-tourism and organic farming.
• A small population base inflates the per capita figure.
• Low poverty and high literacy rates contribute to stable income generation.

2. Goa – $8370

Goa is known for its thriving tourism sector, which significantly boosts its economy. The state stands second with a per capita income of $8370.

Reasons for high income:

• Strong tourism and hospitality industry.
• Mining and export revenues.
• High literacy and quality of life.

3. Delhi – $6906

The capital city of India boasts a high per capita income owing to its diversified service oriented economy.

Reasons for high income

• Large service sector including IT, real estate, and government employment.
• Dense infrastructure and connectivity.
• High consumption and investment levels.

4. Chandigarh – $5905

This Union Territory has consistently ranked among the top states in state-wise per capita income in India.

Reasons for high income

• High presence of government employees.
• Urban centric development.
• Industrial and service sector growth.

5. Telangana – $4745

Telangana’s growth story is marked by its booming IT sector, particularly in Hyderabad.

Reasons for high income

• IT and pharmaceutical industry hubs.
• Real estate and infrastructure investment.
• Policy driven ease of doing business.

Analyzing the Bottom 5 States by Per Capita Income

Now let’s delve into the bottom five states as per the state wise per capita income in India (2024), and examine why they continue to lag behind.

1. Bihar – $813

Bihar remains at the bottom with the lowest per capita income.

Reasons for low income

• High population density with low industrialization.
• Dependence on agriculture with minimal value addition.
• Poor infrastructure and low investment levels.
• Governance and law enforcement challenges.

2. Uttar Pradesh – $1333

Despite being India’s most populous state, UP has one of the lowest per capita incomes.

Reasons for low income

• Overreliance on agriculture.
• Sluggish industrial development.
• Weak educational and health infrastructure.
• Income inequality across regions.

3. Jharkhand – $1444

Despite being mineral rich, Jharkhand is among the poorest in per capita terms.

Reasons for low income

• Mining wealth not translating into local income.
• Poor governance and tribal disenfranchisement.
• Limited value addition industries.

4. Meghalaya – $1850

While scenic and tourism friendly, Meghalaya struggles to generate substantial income.

Reasons for low income

• Lack of industrial base.
• Difficult terrain and connectivity issues.
• Low export potential.

5. Manipur – $1811

Manipur rounds off the bottom five with significant developmental hurdles.

Reasons for low income

• Political instability.
• Weak infrastructure.
• Limited private sector participation.

Why Such Disparities in State Wise Per Capita Income in India?

The gap in state wise per capita income in India is due to several interlinked factors:

1. Population size: States with smaller populations like Sikkim and Goa often appear richer.
2. Industrialization: Industrialized and service based economies (Telangana, Karnataka) perform better.
3. Policy environment: States with stable and business friendly governments attract higher investment.
4. Infrastructure: Roads, electricity, internet, and transportation play a critical role in enabling income generation.
5. Literacy and skill levels: Higher human capital translates into better wages and productivity.

Implications and the Way Forward

Understanding the state wise per capita income in India is crucial for crafting region specific economic policies. It shows where investments and reforms are most urgently needed. Some of the key implications are:

• Targeted subsidies and development grants to lagging states.
• Boosting education and skilling to improve employability.
• Investing in infrastructure to attract industries.
• Decentralized economic planning to empower local governments.

Conclusion

The 2024 data on state wise per capita income in India uncovers a tale of two Indias one racing ahead with high tech industries and tourism, the other caught in poverty and underdevelopment. To ensure inclusive and sustainable growth, it is essential to bridge this income divide with well thought out interventions and governance reforms.

For policymakers, economists, and citizens alike, this data serves as both a roadmap and a call to action. The future of India’s development lies in narrowing the economic chasm between its states.

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