By K R Sudhaman
Forbes has come out state-wise analysis of GDP in India, which makes an interesting analysis of how growth has been uneven in the country and there appears to be correlation between human development index and per capita income. Apparently merely high GDP does not indicate high economic prosperity in the country.
Forbes says India’s GDP reached $3.75 trillion in 2023. Indian states have shown vibrant growth. The analysis indicate that some states have high GDP but their per capita income is not all that high. Uttar Pradesh is one such example. Such examples can be found in smaller states as well. Like-wise FDI flow is too is uneven. Some states have higher FDI flows need not have higher GDP than other states. Karnataka and Gujarat are examples of this phenomenon. Forbes depends on Invest India figures for FDI flows.
GDP, or the gross domestic product, is a parameter to measure the value of all goods and services produced in a particular region. As for GDP per capita, it is a measure that represents the average economic output, or Gross Domestic Product (GDP), per person in a country. It is estimated by dividing the total GDP of a country by its population. Both these parameters gave an excellent notion of how much wealth the population holds in a particular region. Ranking by the GDP of Indian states is a good way to figure out our country’s richest and poorest states.
The Gross State Domestic Product (GSDP) and per capita GDP of Indian states provide insightful metrics that reflect the financial health and prosperity of the nation in a fiscal year.
Forbes relies on Indian government statistics, basically CSO figures and population, needed to calculate per capita is based on 2011 population census. The top ten states as per GSDP is led by Maharashtra followed by Tamil Nadu, Gujarat, Karnataka, Uttar Pradesh, West Bengal, Rajasthan, Andhra Pradesh, Telangana and Madhya Pradesh. Among large states Telangana and Karnataka have per capital income of a little over Rs 3 lakh. Sikkim has the highest per capital income of Rs 5.19 lakh followed by Goa at Rs 4.72 lakh. Chandigarh, a union territory too has over Rs 3 lakh per capita at Rs 3.33 lakh. Haryana and Tamil Nadu and Delhi have per capita income surging towards Rs 3 lakh annually. States like Kerala, Himachal Pradesh and Uttarakhand and to some extent Jammu and Kashmir have done reasonably well in per capital income despite the fact that their GSDP is not very high. But these states have high Human Development Index like education and healthcare.
Forbes, which has analysed the top ten states in terms of GSDP in 2023-24, says Maharashtra, topmost states in terms of GSDP has a population of 11.2 crore. Its FDI inflows from October 2019 to March 2023 was the highest in the country at $53.97 billion. It is the third-largest state in India by area. It describes Maharashtra as the creative hub of India with its thriving design, fashion, film, music, performing arts, publishing, and TV and radio industries. However, the service sector contributes most to the economy here, representing 61.4 percent of the value addition and 69.3 percent of the value output.
Tamil Nadu is the second richest state in terms of GSDP in 2023-24 has a population of 7.2 crore. Its FDI Inflows from October 2019 to March 2023 was not that impressive at $8.5 Billion. According to Forbes, Tamil Nadu is renowned for its vibrant cultural heritage and strong industrial base. The automotive, textiles, and information technology sectors drive the state’s economy. Chennai, the capital city, is a major hub for IT and manufacturing.
Gujarat is the third largest state in terms of GSDP with a population of six crore. It also recorded an impressive FDI Inflows from October 2019 to March 2023 at $31.9 billion. Gujarat is India’s fifth-largest state by land area. The agricultural sector acts as the primary source of income for the region, with agriculture and industrial production being the prime occupations for most of the Gujaratis. Prominent produce from Gujarat include cotton, milk and dairy products, groundnuts, dates, and sugarcane.
Karnataka follows next by way of GSDP with a population of 6.1 crore. Its FDI Inflows from October 2019 to March 2023 at $44.46 Billion was the highest in the country. Karnataka is known for its thriving technology industry. Home to the city of Bengaluru, often referred to as the “Silicon Valley of India,” Karnataka boasts the fourth-largest technology cluster in the world. The state’s rich cultural heritage, diverse landscapes, and strong emphasis on education and innovation make it a prominent player in India’s economic landscape. Its strategic location and business-friendly policies have attracted investments from multinational corporations and fostered a robust start-up ecosystem.
Uttar Pradesh comes next. It is the largest state in the country with a population: 19.9 cr. The FDI Inflows from October 2019 to March 2023 was a mere $1.3 Billion. Though fifth largest state in the country in terms of GSDP, its per capita income is not that impressive at a meagre Rs 83,000 annually. But Uttar Pradesh has a multifaceted economy with significant contributions from agriculture, manufacturing, and services. With a focus on sectors like agro-based industries, information technology, and handicrafts.
West Bengal is again a populous state with 9.1 crore population. It too has not done that well per capital income wise or in FDI flows though its GSDP was the sixth highest in the country.FDI Inflows from October 2019 to March 2023 stood at just $1.42 Billion. The state has agriculture as the leading industry. The state is responsible for a significant portion of the Indian rice harvest. Further, the petrochemical industry in Bengal is thriving, and other integral manufactures consist of automobiles, ships, chemicals and fertilisers, jute, cotton textiles, and electronics.
Rajasthan has a population of 6.8 crore and its FDI Inflows (October 2019 to March 2023) was $2.07 Billion, Rajasthan is the largest state in India by area and agriculture, mining, and tourism primarily drive the state’s economy.
Andhra Pradesh has a population of 4.9 crore and has FDI Inflows (October 2019 to March 2023) at a low of $796 Million. Andhra Pradesh has the second-largest coastline in the country and is rich in natural resources. The state significantly contributes to the GDP of India, focusing on sectors like agriculture, textiles, pharmaceuticals, and information technology.
Telangana has a population of 3.5 crore has FDI Inflows (October 2019 to March 2023): $4.74 Billion, which was not that bad considering the state is not that big. The state home to the tech-savvy populace of Hyderabad, has seen remarkable industrial growth and foreign direct investment inflows. The state’s focus on information technology, biotechnology, and manufacturing has positioned it prominently among the top Indian states by GDP.
Madhya Pradesh, the tenth largest state in terms of GSDP with a population of 7.2 crore. FDI Inflows (October 2019 to March 2023) was a low $529.89 Million. The state is a hub for agriculture, boasting diverse crops. It’s also the largest producer of soybeans in India. With a mix of modern industries and traditional crafts, Madhya Pradesh offers a unique blend of economic activities. The state’s tourism sector thrives, attracting visitors to its historical sites and natural par. (IPA Service)
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