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Great news! Laggard states like Bihar, MP pick up in GDP per capita

Over the last one and half decades, 2000-born Uttarakhand and Tamil Nadu made rapid strides in GDP per capita (net), outpacing Gujarat, widely seen as a dream state for investors, and Maharashtra, the most industrialised state, reports fe Bureau in New Delhi.

Great news! Laggard states like Bihar, MP pick up in GDP per capita
The deposits were mobilised by banks three years back shortly after Raghuram Rajan took over as governor of the Reserve Bank of India (RBI).

Over the last one and half decades, 2000-born Uttarakhand and Tamil Nadu made rapid strides in GDP per capita (net), outpacing Gujarat, widely seen as a dream state for investors, and Maharashtra, the most industrialised state, reports fe Bureau in New Delhi. In more recent years, Bihar and Madhya Pradesh, still at the bottom of the economic pyramid, outpaced these states in per capita GDP growth, reflecting an evening up of the country’s economic landscape.

Yet in the 15 years to 2014-15, the list of top five states in terms of per capita GDP did not alter dramatically; only Punjab and Himachal Pradesh got knocked out while Uttarakhand and Gujarat, which also secured the first and second slots in terms of GDP growth, got in.

While Uttarakhand’s gross state domestic product (GSDP) grew an average 30% in the 15 years to 2014-15, the highest rate among major states, Gujarat’s GSDP expanded by 24%. Karnataka and Rajasthan too have caught up in the per capita GDP growth chart, helped by their relatively high average GSDP expansion rate of 16% during the period.

Although per capita GDP is not an indisputable proxy for prosperity or well-being (nor does it accurately reflect the standard of living), it is indeed one of the indicators.

India’s overall per capita GDP grew 17.4% to an annual `1,05,815 in the three years to 2015-16 while per capita net national income (GDP plus net receipts of salaries and wages from abroad minus depreciation of fixed capital assets) grew at the same rate to `93,293. The top 10 states in per capita GDP in 2014-15 were Haryana, Maharashtra, Tamil Nadu, Uttarakhand, Gujarat, Telangana, Kerala, Karnataka, Punjab and Andhra Pradesh.

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