‘Southern States’ Growth Boosts Economy but Not All Lead in Per Capita Income

GG News Bureau
New Delhi, 18th Sept. In 1991, the per capita income in the five large southern states of Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu was below the national average. However, following India’s landmark economic liberalisation, these states have experienced significant economic growth. Despite this progress, they do not all rank among the richest states in India by per capita income.

According to a recent report from the Prime Minister’s Economic Advisory Council (PMEAC), these southern states collectively contributed about 30% to India’s GDP in the financial year ending March 2024. Telangana, the youngest state formed on June 2, 2014, from Andhra Pradesh, is part of this economic growth narrative.

In contrast, Uttar Pradesh’s contribution to India’s GDP has decreased to 9.5% from 14% in 1960-61. Bihar, despite being the third most populous state according to the 2011 census, contributes only 4.3% to the national GDP.

Punjab, which saw substantial gains from the Green Revolution in the 1960s, had a per capita income of 169% of the national average by 1971. However, these gains have plateaued since then. As of the latest figures, Punjab’s per capita income stands at 106% of the national average.

Haryana, on the other hand, has seen impressive growth in per capita income, reaching 176.8%. Much of this rise began at the turn of the century, reflecting Haryana’s strong economic performance in recent decades.