India’s top 10 states with the fastest growth in per capita income in the last 10 years.
Highlights:
- In the financial year 2012-13 (FY13) India had a per capita income of Rs 70,983 at current prices that has now grown to Rs 1.72 lakhs in FY23.
- Karnataka has topped this list, it has posted the highest CAGR of 14.7 as per capita income has surged 294 per cent from Rs 76,578 in FY13 to Rs 3.02 lakh in FY23.
- Madhya Pradesh is at the third spot. Once labeled as BIMARU state this central Indian state has shown spectacular improvement as per capita income has jumped 224 per cent to Rs 1.41 lakh crore in FY23 from Rs 43,426 in FY13 at a CAGR of 12.5 per cent.
India’s per capita income has been more than doubled in the last ten years. In the financial year 2012-13 (FY13) India had a per capita income of Rs 70,983 at current prices that has now grown to Rs 1.72 lakhs in FY23, clocking an impressive 143 per cent surge in ten years. This outperformance is led by the robust economic growth of several Indian states. Here is the list of top ten Indian states that have posted the fastest per capita income growth in the last decade.
Data available from PIB and RBI showed that Per capita income in India has grown at a compounded annual growth rate (CAGR) of 9.3 per cent for the last ten years. However some major states have managed faster income growth than the national growth rate. Karnataka has topped this list, as the Southern state has posted the highest CAGR of 14.7 per cent. Karnataka’s per capita income has surged 294 per cent from Rs 76,578 in FY13 to Rs 3.02 lakh in FY23. It is followed by its neighbor and another south Indian state Telangana. In Telangana per capita income surged 262 per cent to Rs 3.09 lakh in FY23 from Rs 85,169 in FY13 recording a 10-year CAGR of 13.7 per cent.
Madhya Pradesh is at the third spot. Once labeled as BIMARU state this central Indian state has shown spectacular improvement as per capita income has jumped 224 per cent to Rs 1.41 lakh in FY23 from Rs 43,426 in FY13 at a CAGR of 12.5 per cent. MP is followed by Odisha which was also once considered a backward state but it is now showing robust economic growth. Per capita income in Odisha has increased 206 per cent to Rs 1.51 lakh in FY23 from Rs 49,227 in FY13 having a CAGR of 11.84 per cent.
Northeastern state Assam is in fifth place as per capita income has jumped 204 per cent to Rs 1.19 lakh in FY23 from Rs 38945 in FY13 by clocking a CAGR of Rs 11.77 per cent. It is followed by Andhra Pradesh which has posted a CAGR of 11.75 per cent as per capita income rose 204 per cent to Rs2.20 lakhs in FY23 from Rs 72301 in FY13.
Gujarat is in seventh position, while the latest data for FY23 is not available, however, in a nine-year period it has a CAGR of 11.61 per cent and the per capita income has increased to Rs 2.5 lakh in FY22 from Rs 93046 in FY13.
Tamil Nadu is ranked eighth as per capita income has jumped 177 per cent to Rs 2.73 lakh in FY23 from Rs 98,628 in FY13 at a CAGR of 10.73 per cent. While Kerala is at number nine, While the latest data for FY23 is not available, in nine years it has a CAGR of 10.71 per cent and the per capita income has increased to Rs 2.29 lakh in FY22 from Rs 91,567 in FY13.
Rajasthan is in tenth spot with a CAGR of 9.88 per cent as per capita income has jumped 157 per cent in 10 years to Rs 1.56 lakh from Rs 60844 in FY13.
On the other hand, the bottom three major states with the slowest per capita income growth are Bihar having a nine-year CAGR of 7 per cent, and per capita income increased to Rs 49,470 in FY22 from Rs 26,948. Punjab has a ten-year CAGR of 7.5 per cent and per capita income surging 106 per cent to Rs 1.74 lakh in FY23 from Rs 84,526 FY13 and Jharkhand has a nine-year CAGR of 7.7 per cent and per capita income increased to Rs 78,660 in FY22 from Rs 40,238 in FY13.
It is notable that in this list some states that were earlier considered as backward such as Madhya pradesh, Odisha and Assam have managed to get top spots led by economic progress by these states. However South Indian states are the best performing states in this list as five out top ten states are from south Indian region.
Note: Compounded annual growth rate CAGR is used ease in understanding. As the latest data for FY23 is not available for some states we have used 9 years CAGR for these states. While 10 years CAGR is used for states having latest FY23 numbers and complete 10 years data.
