Discover which Indian states have experienced the most significant growth in per capita income over the last decade, showcasing remarkable economic progress and transformation.
In the past decade, India has witnessed a remarkable transformation in its economic landscape. One of the most telling signs of this progress is the substantial growth in per capita income across various states. Per capita income is the average income earned by an individual in a given area, and it’s a key indicator of economic well-being.
In 2013, India had a per capita income of Rs 70,983, which has now surged to Rs 1.72 lakh in 2023. This represents an impressive 143% increase in per capita income over ten years, and this growth is not uniform across all states. Some states have outpaced the national average, posting remarkable growth rates.
List of Top 10 States with the Fastest Per Capita Income Growth
Karnataka – The Leader in Per Capita Income Growth
CAGR (Compound Annual Growth Rate): 14.7%
Karnataka stands out as the frontrunner in this economic race, with a stunning 294% growth in per capita income. In 2013, the state’s per capita income was Rs 76,578, and by 2023, it had soared to Rs 3.02 lakh. Karnataka’s remarkable CAGR of 14.7% is a testament to its robust economic growth.
Telangana – Close on Karnataka’s Heels
Not far behind Karnataka is Telangana, another South Indian state. Telangana has experienced a remarkable 262% growth in per capita income, from Rs 85,169 in 2013 to Rs 3.09 lakh in 2023, with a 10-year CAGR of 13.7%.
Madhya Pradesh – From BIMARU to Prosperity
Madhya Pradesh, once labeled a BIMARU state, has shown a remarkable turnaround. Its per capita income has leaped by 224%, rising from Rs 43,426 in 2013 to Rs 1.41 lakh in 2023, at an impressive CAGR of 12.5%.
Odisha – A Remarkable Economic Transformation
Odisha, which was once considered a backward state, has demonstrated robust economic growth. Its per capita income has surged by 206%, reaching Rs 1.51 lakh in 2023, up from Rs 49,227 in 2013, with a CAGR of 11.84%.
Assam – A Striking Growth Story
Assam, with a 204% increase in per capita income, has shown remarkable progress. In 2013, per capita income in Assam was Rs 38,945, and it has risen to Rs 1.19 lakh in 2023, with a CAGR of 11.77%.
Andhra Pradesh – Steady Economic Growth
Andhra Pradesh has posted a CAGR of 11.75%, resulting in a 204% increase in per capita income, reaching Rs 2.20 lakh in 2023 from Rs 72,301 in 2013.
Gujarat – A Steady Climb
Gujarat, while lacking the latest data for 2023, has had a consistent growth trajectory with a CAGR of 11.61%. In nine years, per capita income increased from Rs 93,046 in 2013 to Rs 2.5 lakh in 2022.
Tamil Nadu – Impressive Growth
Tamil Nadu’s per capita income has increased by 177%, growing from Rs 98,628 in 2013 to Rs 2.73 lakh in 2023, with a CAGR of 10.73%.
Kerala – A Steady Climb
Kerala, though lacking the latest data for 2023, has shown steady progress with a CAGR of 10.71%. In nine years, per capita income increased from Rs 91,567 in 2013 to Rs 2.29 lakh in 2022.
Rajasthan – Emerging Strong
Rajasthan rounds out the top ten with a CAGR of 9.88%, witnessing a 157% increase in per capita income over ten years, from Rs 60,844 in 2013 to Rs 1.56 lakh in 2023.
Top 10 Indian states with Per Capita Income Growth Overview
Here’s the list of the top 10 Indian states with their respective Compound Annual Growth Rates (CAGR) for per capita income growth:
This table provides a clear overview of the top 10 states with the fastest per capita income growth in India, along with their respective CAGR values.
The State with the Slowest Per Capita Income Growth
While some states have soared, others have lagged behind. The bottom three major states with the slowest per capita income growth are:
Bihar – A 7% CAGR
Bihar has had a nine-year CAGR of 7%, with per capita income rising to Rs 49,470 in 2022 from Rs 26,948.
Punjab – A 7.5% CAGR
Punjab’s ten-year CAGR of 7.5% resulted in a 106% increase in per capita income, reaching Rs 1.74 lakh in 2023 from Rs 84,526 in 2013.
Jharkhand – A 7.7% CAGR
Jharkhand has had a nine-year CAGR of 7.7%, leading to per capita income growth to Rs 78,660 in 2022 from Rs 40,238 in 2013.
Note: In cases where the latest data for 2023 is unavailable for some states, a nine-year CAGR has been used. For states with complete 10-year data, a ten-year CAGR has been applied.
The economic journey of these states reflects the dynamic and diverse growth patterns within India, showcasing both challenges and opportunities on the road to prosperity.