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Telangana has emerged as the top-performing state in terms of GDP per capita income in the country, according to the latest report released by the Minister of State of the Ministry of Statistics and Programme Implementation, Rao Inderjit Singh.
The state has recorded a significant increase of 48% in its GDP per capita income compared to last year, with the current figure standing at ₹3,08,732.
However, it must be noted that the latest report did not include the figures of Goa, Sikkim, and Delhi, which have traditionally been the states with the highest GDP per capita in the previous years.
The report also revealed that Uttar Pradesh is one of the worst-performing states in terms of growth in GDP per capita, with a growth rate of just 22%. Experts believe that looking at the percentage of growth is a better indicator of development rather than looking at the absolute numbers, as all states have differing conditions and economic and social factors that affect their growth.
For instance, Haryana grew by 27% despite having Gurugram, which is a major economic hub. Similarly, Tamil Nadu, another state housing a mega city like Chennai, grew at a rate of 38% below Madhya Pradesh and Odisha, whose GDP grew at a rate of 47% each. Even Rajasthan did well, growing at a rate of 38%.
Disparity among States
The report shows that there is a significant disparity in per capita income among various states in India, with some states faring much better than others. Experts suggest this can be achieved by promoting investments in key sectors, improving infrastructure, and creating employment opportunities.
The report also reveals that there is a need for a more nuanced approach towards measuring growth in GDP per capita. While the absolute numbers can provide some insights, it is important to look at the percentage growth as well to get a more accurate picture. For instance, even though Bihar recorded a growth rate of just 32%, it has done much better than Uttar Pradesh and Jharkhand, which recorded 22% and 16% growth rates, respectively, during the period between 2017-18 and 2021-22.
Region-specific Approach by the Authorities
The report shows that there is a need for the government to adopt a more region-specific approach to promoting economic growth. States with similar economic and social conditions need to be grouped together and provided with tailor-made policies and programs to promote economic growth. For instance, the northeastern states require a different approach than the southern states, which are more urbanized and have a strong industrial base.
The experts believe that the growth rate of a state is influenced by several factors, including the availability of natural resources, infrastructure, education, and skill development, among others. States with a strong industrial base tend to perform better than others. The government needs to focus on creating a conducive environment for industrial growth and promoting entrepreneurship in states that are lagging behind.
Government Initiatives to Reduce the Disparity
Rao Inderjit Singh in his reply, explained that the Government has been taking several measures to reduce the disparity in GDP per capita among Indian states.
One of the key initiatives in this regard is the Pradhan Mantri Garib Kalyan Yojana, which aims to provide social security, income generation, and livelihood options for the vulnerable sections of the population in the country. Additionally, the government has provided concessional credit through Kisan Credit Cards, extended the SVAMITVA Scheme to all states/UTs, and enhanced agricultural credit and infrastructure funds. These schemes are expected to improve the income and livelihoods of farmers and rural communities, which can contribute to reducing the GDP per capita disparity.
Another significant government scheme for inclusive development is the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, which aims to promote self-employment and generate employment opportunities for rural communities. The Deen Dayal Upadhyay – Gramin Kaushalya Yojana is another initiative that focuses on skilling rural youths to enhance their employability. Furthermore, the Pradhan Mantri Awaas Yojana – Gramin, Pradhan Mantri Gram Sadak Yojana, and National Social Assistance Programme have been implemented to improve the quality of life of people in rural areas by providing basic amenities, employment opportunities, and social assistance.
In conclusion, the latest report on the GDP per capita income of various states in India highlights the significant disparity in economic growth among different states. The schemes and initiatives discussed above are expected to contribute to reducing the disparity in GDP per capita among Indian states by generating employment opportunities, improving income and livelihoods, and providing basic amenities and social assistance in rural areas.