ASSOCHAM

ECO
PULSE
States Performance in Per capita Income Growth
Januar !""#

Prepare$ % & Swati Gupta
Per capita income rises at hi'hest pace in minera( rich states of Jhar)han$ an$
Orissa* sas AEP
Jharkhand and Orissa are growing at the fastest pace in terms of their per capita
income, thanks to pick up in industrial activity in the two mineral rich states while
Karnataka, Gujarat and Tamil Nadu have maintained leads among other states, an
Assocham co !tudy has revealed"
Jharkhand, with per capita income of #s"$%,&&', has registered $("( per cent growth"
)ith huge mineral and other natural resources, the state has *een receiving
investment proposals in steel, cement and power sectors, giving the necessary push to
its economy providing employment opportunities"

)ith influ+ of huge cape+ *y the large industrial houses in the core infrastructure
sector, Orissa is witnessing rapid rise of $$", per cent in income distri*ution -#s"
$%,.&,/"
01er capita income reflects on the purchasing power and standard of living of the
people of each state" 2or inclusive growth, it is necessary for the states to put in
efforts to raise the income attri*uta*le to each person3, said 4r" 5enugopal N 6hoot,
1resident, Assocham"

7uoyed *y huge investment flow, rising employment opportunities, the increasing
foothold of service8*ased sectors, the southern states of Karnataka and Tamil Nadu
and industriali9ed Gujarat rank among the top states with per capita income more than
the all :ndia average of #s" ;',.<% -in 2='(/"

Karnataka tops the chart of the well8to8do states with fastest growing income per
person *y &";> per cent at #s" ;$>;& for the financial year ;''(" Gujarat?s average
income per person rose to #s" ;(,,%< with growth of >"&; per cent" 1er capita income
in Tamil Nadu was recorded at #s" ;%,<'> with rise of >"%( per cent" Noticea*ly, these
*est performing states are among the ten most populous :ndian states with more than
,% million population each"

@owever, 6elhi and Goa, relatively smaller states, have highest per capita income at
#s" %&$.; and #s" %.,'. *ut the rate of growth is relatively lower at ("& per cent and
( per cent"
The state of Ahhattisgarh struggling at political, social and economic front, witnessed
>"> per cent growth, though average income *ase remains very low at #s"$(,<(,"
The development plans in the states of 4adhya 1radesh, Bttar 1radesh and 7ihar are
yet to take off as they remain at the *ottom of the pyramid with lowest per capita
incomes of #s" $;,((, #s" $'(<. and #s" (($' growing at the slowest rates of ;"& per
cent, <"$ per cent and <". per cent respectively"

The concern was e+pressed in the !tudy at the fact that the per capita income in
seventeen states was growing *elow the national average of >"% per cent" The per
capita income for the :ndian economy grew to #s" ;;,%>< in 2='. from #s" ;',.<% in
2='("

4aharashtra, with largest state domestic product and major recipient of foreign as
well as domestic investment, has witnessed a healthy growth rate of ."< per cent in its
per capita income -;&,'>,/" Another state to record a*ove . per cent growth was
Bttaranchal, though the income *ase was low at #s";', <;> per person in fiscal '("

@aryana, with prosperous farm sector and *ooming :T, real estates, engineering and
construction activities, has the third largest per capita income of #s" ;&,>>. , growing
at (", per cent"

)est 7engal, despite fourth largest population, has managed to raise its per capita
income at the rate of ( per cent, owing to massive investment plans in sectors like
steel, real estate, power, retail and :T" The average income per person was recorded at
#s" ;',%>, in the fiscal ;'',8;''("

There were states where the effect of overall economic *oom was not reflected in
their per capita income" )hile the state domestic product of Kerela and Andhra
1radesh grew *y >"> per cent and . per cent respectively, the average income
availa*le to each person grew *y ,"& per cent each"

The per capita income in scarcely populated @imachal 1radesh rose at the moderate
growth rate of ,"<% per cent" As the state remains pre8dominantly dependent on
tourism sector, the level of industrial investment remains low" The per capita income
was recorded at #s";.,$(; in fiscal '("

Growth in the prosperous state of 1unja* seems to have stalled as rise in per capita
was estimated to *e mere ;"& per cent, even though it has fifth largest per capita
income of #s";>,(',"