Decade of Success: India's Top 10 States with Exponential Per Capita Income Growth

01 Nov, 2023

Decade of Success: India's Top 10 States with Exponential Per Capita Income Growth

In a remarkable economic transformation, several Indian states have exhibited impressive per capita income growth over the last decade. India's per capita income has more than doubled in the past ten years, surging from Rs 70,983 in financial year 2012-13 (FY13) to Rs 1.72 lakh in FY23, representing a remarkable 143% increase. This remarkable achievement is attributed to the robust economic growth of select Indian states. Here is a list of the top 10 Indian states that have outperformed the national average in terms of per capita income growth over the past decade, based on data from CMIE and PIB.

1. Karnataka - Leading the Pack: Karnataka tops the list with a staggering 294% increase in per capita income, soaring from Rs 76,578 in FY13 to an impressive Rs 3.02 lakh in FY23. The state has achieved a remarkable Compound Annual Growth Rate (CAGR) of 14.7%.

2. Telangana - Close Behind: Karnataka's neighboring state, Telangana, secured the second position with a remarkable 262% increase in per capita income, rising to Rs 3.09 lakh in FY23 from Rs 85,169 in FY13, boasting a 10-year CAGR of 13.7%.

3. Madhya Pradesh - A Spectacular Turnaround: Madhya Pradesh, once categorized as a BIMARU state, exhibited a spectacular improvement with a 224% surge in per capita income, reaching Rs 1.41 lakh in FY23 from Rs 43,426 in FY13, boasting a CAGR of 12.5%.

4. Odisha - A Resilient Growth Story: Odisha, formerly considered a backward state, has displayed robust economic growth. Per capita income in Odisha increased by 206% to Rs 1.51 lakh in FY23 from Rs 49,227 in FY13, with a CAGR of 11.84%.

5. Assam - Steady Progress: Assam secured the fifth position with a 204% increase in per capita income, surging to Rs 1.19 lakh in FY23 from Rs 38,945 in FY13, reflecting a CAGR of 11.77%.

6. Andhra Pradesh - Continuing Growth: Andhra Pradesh, with a CAGR of 11.75%, experienced a 204% increase in per capita income, rising to Rs 2.20 lakh in FY23 from Rs 72,301 in FY13.

7. Gujarat - Consistent Growth: While the latest data for FY23 is not available, Gujarat maintained a steady CAGR of 11.61% over a nine-year period, with per capita income increasing to Rs 2.5 lakh in FY22 from Rs 93,046 in FY13.

8. Tamil Nadu - Progressive Growth: Tamil Nadu witnessed a 177% increase in per capita income, reaching Rs 2.73 lakh in FY23 from Rs 98,628 in FY13, reflecting a CAGR of 10.73%.

9. Kerala - Steady Advancement: While the latest data for FY23 is not available, Kerala maintained a CAGR of 10.71% over nine years, with per capita income increasing to Rs 2.29 lakh in FY22 from Rs 91,567 in FY13.

10. Rajasthan - A Notable Climb: Rajasthan secured the tenth position with a CAGR of 9.88%, achieving a 157% increase in per capita income over ten years, surging to Rs 1.56 lakh from Rs 60,844 in FY13.

On the other hand, some Indian states experienced slower per capita income growth:

Bihar achieved a nine-year CAGR of 7%, with per capita income increasing to Rs 49,470 in FY22 from Rs 26,948.

Punjab maintained a ten-year CAGR of 7.5%, with per capita income surging 106% to Rs 1.74 lakh in FY23 from Rs 84,526 in FY13.

Jharkhand displayed a nine-year CAGR of 7.7%, with per capita income increasing to Rs 78,660 in FY22 from Rs 40,238 in FY13.

These figures highlight the diverse economic growth trajectories among Indian states, underscoring the remarkable progress made by several states in elevating their citizens' economic well-being over the past decade.