Per Capita Income of Indian States: Who Tops the Chart?

What is the Per Capita Income of Indian States?

“Per Capita Income of Indian States” refers to the typical annual income of a region’s inhabitants. One year’s national income divided by population yields it. The per capital income of Indian states is often measured to compare regional disparities and economic strengths. PCI, short for per capita income, plays a central role in these comparisons.

Economists and policymakers use per capita income to evaluate a nation’s economy and living standards. Global per capita incomes compare countries’ prosperity. Economic productivity and living standards increase with per capita income. For example, Indian per capita income 2024 data shows signs of economic recovery and growth.

Average per capita income growth indicates economic growth. Income distribution is not shown by per capita income. Median income and the Gini coefficient give context for income inequality and living standards. Per capita income is still a popular economic indicator. Read on to find the highest per capita income state in India and learn more about PCI trends.

History of Per Capita Income of Indian States

India’s Glorious Past

Our story begins with a prosperous India, a dominant player in global trade. Imagine bustling ports and thriving industries contributing to a flourishing economy, where the per capital income in rupees would have rivaled global standards had it been measured then.

The Colonial Downturn

The arrival of the British, particularly after the decisive Battle of Plassey, marked a profound turning point in India’s economic trajectory. From being a global trading powerhouse, India was relegated to the mere supplier of raw materials for British manufacturing. The Industrial Revolution intensified this shift, as mass-produced British goods flooded the Indian markets, systematically undermining and crippling thriving domestic industries. This exploitation drained India’s resources and disrupted its self-sufficient economic framework, impacting its prosperity and reducing the per capital income of Indian states.

Economic Exploitation

This wasn’t just trade; it was economic imperialism. The British levied heavy taxes on Indian exports, making them less competitive. Meanwhile, cheaper British goods flooded the market, hindering Indian production and leading to a significant wealth drain, as Dadabhai Naoroji, the “Grand Old Man of India,” theorized. This contributed to a stark decline in what is the per capital income of Indian states?

Early Calculations and Challenges

Naoroji wasn’t alone in recognizing the economic plight. He and other prominent economists, such as VKRV Rao, R.C. Dutt, and William Digby, attempted to quantify the damage. They estimated the per capital income of Indian states in the pre-independence era (around 1867-68) to be a meager Rs. 20, clearly reflecting the lowest per capita figures.

Per Capita Income = Total National Income/Total Population = $100 billion/50 million = $2,000     

Components of National Income

 Here are the primary components:

1. GDP: The market value of all final goods and services produced in a country in a given period. Includes consumption, government purchases, investments, and net exports.
2. Net National Product (NNP): This is the GDP after subtracting depreciation. Depreciation describes the deterioration of a country’s capital over time.
3. National Income (NI): The total money earned within a country. Payouts include wages, interest, rent, and profits. Take the NNP, subtract indirect taxes, and add subsidies.
4. Personal Income (PI): A country’s residents’ total income before taxes. It is the total income of all individuals or households in a given period.
5. Gross National Product (GNP): GDP plus net income from abroad – income from investments abroad minus domestic income by overseas residents.

India Per Capita Income 2024

Here is a List of the Per capita income of Indian states in 2024:

Rank	State/UT	Per Capita Income (₹ in thousand)
1	Sikkim	587.74
2	Goa*	492.65
3	Delhi	461.91
4	Chandigarh*	399.65
5	Telangana	356.56
6	Karnataka	332.93
7	Haryana	325.76
8	Tamil Nadu	315.22
9	Kerala	281.00
10	Maharashtra	277.60
11	Gujarat*	272.45
12	Puducherry	262.17
13	Uttarakhand	260.20
14	Andaman & Nicobar Islands*	258.15
15	Andhra Pradesh	242.48
16	Himachal Pradesh	235.20
17	Mizoram*	215.14
18	Arunachal Pradesh*	199.99
19	Punjab	196.51
20	Tripura	177.72
21	Rajasthan	167.96
22	Odisha	163.10
23	West Bengal	154.12
24	Chhattisgarh	147.36
25	Nagaland*	145.54
26	Madhya Pradesh	142.57
27	Jammu & Kashmir	142.14
28	Meghalaya	136.95
29	Assam	135.79
30	Manipur*	111.85
31	Jharkhand	105.27
32	Uttar Pradesh	93.51
33	Bihar	60.34

Source- Click here

Which State in India Has the Highest Per Capita Income in 2024?

Sikkim is the state with India’s highest per capita income in 2024. Here are some other top-ranking states by per capita income or the wealthiest states in India 2024 list:

• Sikkim: ₹587,745
• Goa: ₹492,650
• Delhi: ₹461,910

These states have achieved higher economic growth due to strong tourism, industrial development, and better infrastructure, contributing to a higher standard of living.

Per Capita Income Data Analysis

Per Capita Income of Indian States: Previous Years’ Data

Year	Nominal GDP per capita ($) at Current Price	Nominal GDP per capita (₹) at Current Price	Nominal GDP per capita ($) at Constant Price	Nominal GDP per capita (₹) at Constant Price
2020	1,901	1,39,423	1,966	1,44,239
2019	2,101	1,54,273	2,152	1,57,912
2018	1,997	1,46,601	2,090	1,53,410
2017	1,981	1,45,313	1,982	1,45,313
2016	1,733	1,27,121	1,876	1,37,572
2015	1,606	1,17,640	1,752	1,28,512
2014	1,574	1,15,422	1,640	1,20,240
2013	1,450	1,06,350	1,545	1,13,295
2012	1,444	1,05,820	1,469	1,07,657
2011	1,458	1,06,742	1,410	1,03,330
2010	1,358	99,446	1,358	99,446

Per Capita Income of Indian States Based on Current Prices 2022-23

PER CAPITA INCOME BASED ON CURRENT PRICES (In Rs) As on 01.08.2023
S. No.	State\UT	2022-23	2023-24
1	Andhra Pradesh	2,19,518	2,42,479
2	Arunachal Pradesh	2,05,645	–
3	Assam	1,18,504	1,35,787
4	Bihar	54,111	60,337
5	Chhattisgarh	1,33,898	1,47,361
6	Goa	4,72,070	4,92,648
7	Gujarat	2,41,930	–
8	Haryana	2,96,685	3,25,759
9	Himachal Pradesh	2,22,227	2,35,199
10	Jharkhand	91,874	1,05,274
11	Karnataka	3,01,673	3,32,926
12	Kerala	2,33,855	2,81,001
13	Madhya Pradesh	1,21,594	1,42,565
14	Maharashtra	2,15,233	2,77,603
15	Manipur	91,560	–
16	Meghalaya	1,12,737	1,36,948
17	Mizoram	1,98,962	–
18	Nagaland	1,25,887	–
19	Odisha	1,49,902	1,63,101
20	Punjab	1,81,716	1,96,505
21	Rajasthan	1,56,149	1,67,964
22	Sikkim	5,19,964	5,87,743
23	Tamil Nadu	2,75,583	3,15,220
24	Telangana	3,12,398	3,56,564
25	Tripura	1,59,419	1,77,723
26	Uttar Pradesh	83,565	93,514
27	Uttarakhand	2,33,565	2,60,201
28	West Bengal	2,33,565	1,54,119
29	Andaman & Nicobar Islands	2,29,080	–
30	Chandigarh	3,33,932	–
31	Delhi	4,44,768	4,61,910
32	Jammu & Kashmir-UT	1,36,771	1,42,138
33	Puducherry	2,51,344	2,62,166

Per Capita Income of Indian States: Slowest Growth

Bihar, Punjab, and Jharkhand have shown the lowest per capita income growth in a decade, reflecting the persistent challenges these regions face. These states, which have some of the lowest per capita indicators and PCI levels, indicate substantial economic underdevelopment. The leading causes are low industrialization, weak infrastructure, lack of skill development, health and education underinvestment, and limited job creation opportunities. With the Indian per capita income 2024 on the rise, disparities like these become even more apparent. The India GDP 2025 targets can only be met if attention is given to uplifting these low-performing states.

Slow growth in the per capital income of Indian states like Bihar contributes to socioeconomic stagnation. Skill India, private investments, job creation incentives, and targeted public spending are essential strategies to stimulate growth. Strategic strengthening of these economic growth drivers is necessary to bridge the gap between Indian states by GDP per capita. While some regions approach the highest per capita income state in India benchmarks, others still struggle at the lowest per capita end of the spectrum.

Per Capita Income of Indian States Wise List

Here is the list of the Highest Per Capita Income of Indian States Wise List, showcasing states with strong PCI growth and setting benchmarks for others:

Rank	State/Union Territory	NSDP Per Capita (₹)	NSDP Per Capita ($)
1	Goa	₹ 4,72,070	$ 6,215
2	Sikkim	₹ 4,63,509	$ 6,102
3	Delhi	₹ 3,89,529	$ 5,128
4	Chandigarh	₹ 3,33,932	$ 4,396
5	Telangana	₹ 2,70,839	$ 3,566
6	Karnataka	₹ 2,65,623	$ 3,497
7	Haryana	₹ 2,64,835	$ 3,487
8	Puducherry	₹ 2,51,344	$ 3,309
9	Tamil Nadu	₹ 2,42,253	$ 3,189
10	Gujarat	₹ 2,41,930	$ 3,185
11	Kerala	₹ 2,33,855	$ 3,079
12	Andaman and Nicobar Islands	₹ 2,29,080	$ 3,016
13	Maharashtra	₹ 2,15,233	$ 2,834
14	Uttarakhand	₹ 2,11,657	$ 2,786
15	Arunachal Pradesh	₹ 2,05,645	$ 2,707
16	Himachal Pradesh	₹ 2,01,271	$ 2,650
17	Mizoram	₹ 1,98,962	$ 2,619
18	Andhra Pradesh	₹ 1,92,587	$ 2,535
19	Punjab	₹ 1,68,705	$ 2,221
20	Tripura	₹ 1,37,472	$ 1,810
21	Rajasthan	₹ 1,35,962	$ 1,790
22	Odisha	₹ 1,28,181	$ 1,687
23	Nagaland	₹ 1,25,887	$ 1,657
24	West Bengal	₹ 1,24,798	$ 1,643
25	Madhya Pradesh	₹ 1,21,594	$ 1,601
26	Jammu and Kashmir	₹ 1,20,790	$ 1,590
27	Chhattisgarh	₹ 1,20,704	$ 1,589
28	Meghalaya	₹ 1,03,335	$ 1,360
29	Assam	₹ 1,02,965	$ 1,356
30	Manipur	₹ 91,560	$ 1,205
31	Jharkhand	₹ 84,059	$ 1,107
32	Uttar Pradesh	₹ 73,048	$ 962
33	Bihar	₹ 47,498	$ 625

This list is crucial to understanding disparities in the per capital income of India. States like Goa and Sikkim consistently lead the charts with top PCI rankings. Delhi also stands out as the richest state in India based on the latest Indian per capita income 2024 figures.

Economic Analysis of Per Capita Income of Indian States

As per the latest provisional estimates published on 31st May 2023, India’s per capita Net National Income (NNI) at constant (2011–12) prices increased by 35.12% from Rs. 72,805 in 2014–15 to Rs. 98,374 in 2022–23. The per capital income in rupees reached around 170 thousand in 2023, further reinforcing the strength of India GDP 2024 data. With India GDP 2025 projections aiming higher, PCI metrics become vital for planning.

The annual growth rate was 13.7% compared to the previous year. This spike reflects robust economic performance but also masks the lowest per capita trends seen in some lagging states. The average inflation and consistent PCI improvement are signs of potential economic convergence if policies are aligned.

CPI Base 2012=100		Growth rate of Per Capita NNI (In %)
Year	Inflation based on CPI	At Current Prices	At Constant (2011-12) Prices
2014-15	5.93	9.5	6.2
2015-16	4.91	9.4	6.7
2016-17	4.52	10.6	6.9
2017-18	3.59	9.9	5.5
2018-19	3.41	9.3	5.2
2019-20	4.77	5.1	2.5
2020-21	6.16	-4.0(2nd RE)	-8.9(2nd RE)
2021-22	5.51	16.9(1st RE)	7.6(1st RE)
2022-23	6.65	16.0(PE)	6.3(PE)

India’s GVA Breakdown: Sector Contributions (2018-19 to 2022-23)

Understanding the Per Capita Income of Indian States & how India’s economy is structured is key for Understanding the per capital income of Indian states is tied directly to India’s economic structure. The GVA data reveals how sectors like services and manufacturing influence PCI and income disparities. With agriculture contributing 18.42% and services over 50%, targeting these sectors could reshape the PCI distribution across Indian states by GDP per capita.

S.No.	Economic Activity/Sector	2018-19 (%)	2019-20 (%)	2020-21 (%)	2021-22 (%)	2022-23 (%)
1	Agriculture, forestry and fishing	17.64	18.33	20.32	18.97	18.42
2	Mining and quarrying	2.20	1.94	1.74	2.00	2.36
3	Manufacturing	16.38	14.72	15.40	15.84	14.70
4	Electricity, Gas, Water supply & Other utility services	2.62	2.74	2.75	2.59	3.00
5	Construction	7.87	7.50	7.39	8.10	8.19
6	Trade, Hotels, Transport, Communication & Services related to Broadcasting	18.65	18.93	15.78	16.85	17.98
7	Financial, Real Estate & Professional Services	20.55	21.11	22.19	21.51	21.42
8	Public Administration, Defence& Other Services	14.10	14.74	14.43	14.13	13.94
9	TOTAL GVA at basic prices	100.00	100.00	100.00	100.00	100.00

Key Takeaways:

• Services Dominate: The services sector remains the dominant contributor, aligning with higher PCI in urbanized regions.
• Manufacturing Stability: Consistent manufacturing shares highlight states with balanced PCI growth.
• Agriculture’s Role: Still vital in regions with the lowest per capita incomes.
• Public Services Impact: Approximately 10% contribution underscores the role of governance.

Second Advance Estimates of NIEC of GDP, 2022-23 (at 2011- 12 Prices)

This table reflects the evolution of per capita income of Indian states from 2020–21 to 2022–23.

Item	2020-21 (Second Revised Estimates)	2021-22 (First Revised Estimates)	2022-23 (Second Advanced Estimates)	% Change (2021-22 over 2020-21)	% Change (2022-23 over 2021-22)
Population (in million)	1355	1369	1383	–	–
Per Capita GDP (INR)	100,981	109,060	115,490	8.0%	5.9%
Per Capita GNI (INR)	99,578	106,822	113,144	7.3%	5.9%
Per Capita NNI (INR)	86,054	92,583	98,118	7.6%	6.0%
Per Capita PFCE (INR)	57,728	63,595	67,555	10.2%	6.2%

Key Takeaways:

• Steady Rise: Per capita income of Indian States has shown consistent growth, reaching ₹1,15,490 in 2022-23.

• Growth Rates:
  • 2021-22: 8.0% increase over 2020-21.
  • 2022-23: 5.9% increase over 2021-22.

• Per Capita Breakdown:
  • Gross Domestic Product (GDP): ₹1,15,490
  • Gross National Income (GNI): ₹1,13,144
  • Net National Income (NNI): ₹98,118

• Consumption on the Rise:
  • Per capita final consumption expenditure (PFCE) also grew, reaching ₹67,555 in 2022-23.

Significance of Per Capita Income in India

Per capita income, or income per person, measures the amount of money earned per person in a particular area in a specified period. It is often used as an indicator of living standards or economic well-being. Let’s delve into the significance of the Per Capita Income of Indian States.

Economic Indicator

The per capita income of Indian States is a crucial economic indicator that helps gauge a country’s financial health. A higher per capita income indicates a higher standard of living and a robust economy, while a lower per capita income may suggest the opposite.

Policy Decisions

Per capita income is a vital statistic that aids policymakers in making informed decisions. It helps identify income disparities, understand economic challenges, and formulate policies for poverty alleviation and economic development.

Investment Decisions

Investors often consider per capita income when making investment decisions, as it can provide insights into a country’s economic stability and growth potential. A higher per capita income might attract more investors, suggesting a wealthier population and potentially a more significant market for goods and services.

International Comparisons

Per capita income allows for comparisons between countries, offering a more level perspective than absolute economic measures like Gross Domestic Product (GDP). It helps in understanding where a country stands on the global financial stage.

Income Disparity in India 

According to official data from 2011, India’s Gini coefficient was 0.45, indicating high income inequality. However, this figure is lower than that of other emerging economies such as Brazil and South Africa. Since the liberalization of the economy in the 1990s, the incomes of the top 10% and 1% have increased significantly, driven mainly by expert services and corporate profits. Unfortunately, India still has a staggering 200 million people living in poverty, according to the World Bank. Minority groups, in particular, earn very little due to a lack of access to education, healthcare, and employment opportunities.

Responsibilities of the Ministry of Statistics and Programme 

Statistical and Programme Implementation Ministry (MoSPI) analyzes and reports economic growth policy and planning data. Surveys, censuses, and field investigations by the ministry collect data on prices, industrial and agricultural production, employment, income, and demographics. Using statistical methods, expert groups find trends, projections, and problems in large datasets. The ministry publishes economic indicators, market conditions, population, resource allocation handbooks, bulletins, and statistical reports.

The state with the lowest per capita income in India is Bihar. MoSPI oversees data collection and analysis for PCI, GDP, and related metrics. Their work supports transparent planning and equitable development. Through this data, India can identify which are the richest states in India and regions lagging behind.

Per Capita Income of Indian States UPSC

Understanding the Per Capita Income of Indian States (PCI) is crucial for UPSC aspirants aiming to excel in the Economy section. Here’s a breakdown:

• What it Means: PCI measures the average income earned by an individual in India annually.
• Importance for Development:
  • Gauges the overall economic well-being of India and individual states.
  • Reflects the efficiency of the production and distribution of goods and services.
• Calculation:
  • National Income (total monetary value of goods & services produced) divided by India’s total population.
  • Calculated by the Central Statistical Organization (CSO).

Why UPSC Aspirants Should Care:

• PCI is a key indicator of economic growth and development, a frequently tested UPSC topic.
• Understanding its calculation and interpretation demonstrates a firm grasp of economic fundamentals.
• Analyzing variations in PCI across states highlights regional disparities, another critical UPSC theme.

Conclusion

In conclusion, per capita income is a valuable metric for gauging a state’s economic development and living standards in India. While some states like Goa and Sikkim boast impressive per capita income figures, significant disparities exist nationwide. Regions like Bihar and Jharkhand struggle with lower per capita income, highlighting the need for targeted policies to promote balanced economic growth across all Indian states. Addressing infrastructure development, skill development, and job creation will be crucial in narrowing the gap and improving living standards for all citizens.

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