{"id":29649,"date":"2024-09-18T19:24:47","date_gmt":"2024-09-18T13:54:47","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=29649"},"modified":"2025-04-18T12:32:48","modified_gmt":"2025-04-18T07:02:48","slug":"relative-economic-performance-of-indian-states","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/18-09-2024\/relative-economic-performance-of-indian-states","title":{"rendered":"Relative Economic Performance of Indian States"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>\u2018Relative Economic Performance of Indian States: 1960-61 to 2023-24\u2019 <\/strong>paper has been released by the <strong>Economic Advisory Council to the Prime Minister (EAC-PM).<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It&nbsp; examines the relative economic performance of states <strong>over the past six and a half decades <\/strong>using two indicators-<strong> Share in India\u2019s GDP and Relative per capita income.&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>The state&#8217;s share in India\u2019s GDP<\/strong> is calculated by dividing the Gross State Domestic Product (GSDP) of the state by the sum of GSDP of all states.&nbsp;<\/li>\n\n\n\n<li><strong>Relative per capita income<\/strong> is calculated as the ratio of the per capita Net State Domestic Product (NSDP) of the state as a percentage of the all-India per capita Net National Product.&nbsp;<\/li>\n\n\n\n<li>The data is taken from the <strong>Ministry of Statistics and Programme Implementation (MoSPI).&nbsp;<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Findings<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Southern states:<\/strong> Before 1991, southern states did not show expectational performance. However, since the economic liberalization of 1991, the southern states have emerged as the leading performers.\n<ul class=\"wp-block-list\">\n<li>In 2023-24, Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu together accounted for approximately <strong>30 percent of India&#8217;s GDP.&nbsp;<\/strong><\/li>\n\n\n\n<li>In addition, per capita income of all southern states became <strong>higher than the national average after 1991.&nbsp;<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Western states: Maharashtra <\/strong>has maintained the highest share of India\u2019s GDP for almost all of the period.\n<ul class=\"wp-block-list\">\n<li><strong>Gujarat\u2019s share<\/strong> began to increase rapidly- from 6.4 percent in 2000-01 to 8.1 percent in 2022-23.&nbsp;<\/li>\n\n\n\n<li>Both Gujarat and Maharashtra have had per capita incomes exceeding the national average since the 1960s.&nbsp;<\/li>\n\n\n\n<li><strong>Goa<\/strong> has excelled in per capita income terms, with its relative per capita income doubling since 1970-71.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Northern States:<\/strong><strong>Delhi and Haryana<\/strong> have performed notably well, while <strong>Punjab&#8217;s economy has deteriorated after 1991.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>Delhi saw its share of India\u2019s GDP increase from<strong> 1.4 percent to 3.6 percent <\/strong>during this period.&nbsp;<\/li>\n\n\n\n<li>Haryana&#8217;s share of India\u2019s GDP now exceeds that of Punjab, and its relative per capita income has reached 176.8 percent, compared to Punjab&#8217;s 106.7 percent in 2023-24.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Eastern states: West Bengal,<\/strong> which held the third-largest share of national GDP at 10.5 percent in 1960-61, now accounts for only <strong>5.6 percent in 2023-24.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>West Bengal\u2019s per capita income has declined to 83.7 percent in 2023-24 from 127.5 percent.<\/li>\n\n\n\n<li>The relative per capita income of undivided Bihar was 70.3 percent in 1960- 61, it declined t<strong>o 31 percent<\/strong> in 2000-01 after the bifurcated state of Bihar.\u00a0<\/li>\n\n\n\n<li><strong>Odisha <\/strong>per capita income increased from 54.3 percent in 1990- 91 to 88.5 percent in 2023-24.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Central states:<\/strong> Uttar Pradesh had a share of 14.4 percent in India\u2019s GDP in 1960-61. However, its share started to decline thereafter, which continued even after bifurcation.\n<ul class=\"wp-block-list\">\n<li>Madhya Pradesh followed a five-decade period of decline (82.4 percent in 1960-61 to 60.1 percent in 2010-11). Its relative per capita income increased from 60.1 percent in 2010-11 to 77.4 percent in 2023-24.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>North-eastern states:<\/strong> In 1980-81,<strong> Sikkim&#8217;s per capita income <\/strong>was below the national average. However, it\u2019s per capita income surged from around 100 percent of the national average in 2000-01 to<strong> 320 percent in 2023-24.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Assam, <\/strong>which initially had a per capita income slightly above the national average experienced a decline reaching 73.7 percent in 2023- 24.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons for regional disparities among the states<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unequal Resource Distribution:<\/strong> Natural resources like minerals, fertile land, and water are unevenly distributed, benefiting some states more than others.<\/li>\n\n\n\n<li><strong>Infrastructure Gaps:<\/strong> States with better infrastructure (roads, electricity, ports) attract more investment and development, leading to growth disparities.<\/li>\n\n\n\n<li><strong>Industrialization:<\/strong> Industrialized states experience faster economic growth, while states with limited industries remain underdeveloped.<\/li>\n\n\n\n<li><strong>Governance and Policy Implementation: <\/strong>States with efficient governance and policies tend to grow faster compared to those with poor policy execution and governance issues.<\/li>\n\n\n\n<li><strong>Human Capital and Education:<\/strong> States with better educational facilities and skilled labor force attract more businesses, leading to economic growth, while others lag behind due to lower human development indices.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overall, the <strong>western and southern regions<\/strong> of the country are <strong>outperforming <\/strong>others, with notable success also observed in parts of the north.&nbsp;<\/li>\n\n\n\n<li>The <strong>eastern part <\/strong>of the country continues to be a <strong>concern<\/strong>.&nbsp;<\/li>\n\n\n\n<li>The <strong>maritime states have clearly outperformed <\/strong>the other states, with the <strong>exception of West Bengal.&nbsp;<\/strong><\/li>\n\n\n\n<li>Even the <strong>coastal state of Odisha<\/strong> which was traditionally a laggard state has seen improved performance in the last two decades.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/steady-growth-in-west-south-states-decline-in-bengal-eac-pm-report-9573216\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Relative Economic Performance of Indian States: 1960-61 to 2023-24\u2019 paper has been released by the Economic Advisory Council to the Prime Minister (EAC-PM).<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29649","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=29649"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29649\/revisions"}],"predecessor-version":[{"id":41474,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29649\/revisions\/41474"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=29649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=29649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=29649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}