Economic performance report of states
Context:
Recently, ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’, report was released.
- It highlighted the economic disparities among Indian states over the past six decades.
- It is released by the Economic Advisory Council to the Prime Minister (EAC-PM).
Relevance:
GS-02 (Government Policies & Interventions, Conservation
Key Findings of the Report:
- Economic Performance:
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- Southern States’ Growth: Southern states like Karnataka, Andhra Pradesh, Telangana, Kerala, Tamil Nadu have totally contributed 30% to India’s GDP by 2024.
- West Bengal’s Decline: The report shows a drop in West Bengal’s GDP contribution from 10.5% in 1960-61 to 5.6% in 2024. Its per capita income also fell from 127.5% of the national average to 83.7%.
- Maharashtra: Maharashtra remains the largest GDP contributor at 13.3%. However, its share has also declined from over 15%.
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- Per Capita Income Trends:
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- Top Performers: Delhi, Telangana, Karnataka, and Haryana recorded the highest per capita incomes in 2023-24, with Delhi’s income at 250.8% of the national average.
- Gujarat and Maharashtra: Both states maintained above-average per capita incomes since the 1960s, with Gujarat at 160.7% and Maharashtra at 150.7% of the national average in 2024.
- Odisha’s Improvement: Odisha’s per capita income rose from 55.8% in 2000-01 to 88.5% in 2023-24.
- Punjab vs. Haryana: Punjab’s economic growth stagnated, with its per capita income falling to 106%, while Haryana’s grew to 176.8% of the national average.
- Smaller States: Sikkim and Goa emerged as India’s richest states by per capita income, with Sikkim at 319% and Goa at 290% of the national average.
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- Challenges for Poorer States:
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- States like Uttar Pradesh and Bihar lag behind, contributing 9.5% and 4.3% to the GDP, respectively, with Bihar showing minimal improvement despite growth in Odisha.
Way forward:
The report emphasizes the need for a comprehensive investigation into policies and factors driving state-level economic growth to address widening regional disparities across India.
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