The report said the four southern states — five now after the bifurcation of Andhra Pradesh — had per capita incomes below the national average until the 1990s but grew much faster after liberalisation.
Published Sep 18, 2024 | 9:00 AM ⚊ Updated Sep 18, 2024 | 5:48 PM
GDP of India. Representative Image. (iStock)
Southern states of India have performed strongly in per capita income since the 1990s with Telangana having a per capita income that is 94 percent higher than the national average, according to a report by the Economic Advisory Council to the Prime Minister.
It said the four southern states — five now after the bifurcation of Andhra Pradesh — had per capita incomes below the national average until the 1990s but grew much faster after liberalisation.
It also noted that Tamil Nadu has the second-highest share (8.9%) of the nation’s GDP among the large states with Maharashtra topping the list (13.3%) in 2023-2024.
The report said Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu together accounted for approximately 30 percent of India’s GDP in 2023-2024.
“Before 1991, southern states did not show expectational performance. However, since the economic liberalisation of 1991, the southern states have emerged as the leading performers,” the report said.
Performance of states. (GDP and per capita income).
“In addition, per capita income of all southern states became higher than the national average after 1991. For instance, the relative per capita income in Telangana is now 193.6 percent of the national average, while Karnataka, Tamil Nadu, and Kerala have per capita incomes 181 percent, 171 percent, and 152.5 percent of the national average, respectively,” it added.
Karnataka now accounts for 8.2 percent of India’s GDP, while Andhra Pradesh and Telangana together contribute 9.7 percent, (4.7% and 4.9% respectively).
Kerala’s share had increased from 3.4 percent in 1960-61 to a peak of 4.1 percent in 2000-01 but has since drifted down to 3.8 percent in 2023-24. It is the only southern state that seems to be losing its share.
The report said the western and southern regions have performed notably better than other parts of the country.
“Maharashtra and Gujarat have consistently demonstrated strong economic performance over the years. Goa’s relative per capita income has doubled over the period of study,” the report said.
Additionally, the southern states have significantly outpaced others after economic liberalisation, with the five states collectively accounting for approximately 30 percent of India’s GDP.
In the North, Delhi has one of the highest per capita incomes throughout the study period.
The divergent performance of Haryana and Punjab warrants further investigation to understand the underlying policy implications. Punjab’s relative per capita income has declined after the 2000s, while Haryana, which was once behind, has surpassed Punjab on both economic indicators.
The eastern part of the country remains a concern, it said.
“West Bengal has experienced a continuous decline in its relative economic performance over several decades. Although Bihar’s relative position has stabilised in the last two decades, it remains significantly behind other states and requires much faster growth to catch up. Conversely, Odisha, traditionally a laggard, has shown marked improvement in recent years. Overall, maritime states have clearly outperformed the other states, with the exception of West Bengal,” it added.
(Edited by Muhammed Fazil)
