Per capita income is a crucial indicator of a region’s economic health, representing the average income earned per person in a specific area. It is calculated by dividing the total income of the area by its population, providing insights into the standard of living and economic well-being of its residents. A higher per capita income generally suggests a higher standard of living, though it doesn’t account for income distribution disparities within the population.
Based on the latest report by the Economic Advisory Council to the Prime Minister, here are the top five Indian states with the highest per capita income, expressed as a percentage of the national average:
1. Telangana – 176.8% of National Average
- Economic Growth: Since its formation in 2014, Telangana has experienced rapid economic development.
- Key Sectors:
- Agriculture: Significant advancements contributing to the state’s economy.
- Information Technology: Hyderabad, the capital city, is a major tech hub attracting substantial investments and fostering an innovative culture.
Pharmaceuticals: A growing sector bolstering the state’s income levels.
2. Haryana – 176.8% of National Average
- Industrial Base: Haryana boasts a robust industrial sector with significant contributions from various industries.
- Key Industries:
- Information Technology: A rapidly expanding sector within the state.
- Automobiles: Home to major automotive manufacturing units.
- Manufacturing: Diverse manufacturing units contribute to economic growth.
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3. Delhi – 167.5% of National Average
- Diverse Economy: The national capital thrives with contributions from multiple sectors.
- Major Sectors:
- Technology: A growing tech scene contributing to economic development.
- Finance: A central hub for financial activities in the country.
- Hospitality and Service Sector: Significant contributors to the city’s income levels.
- Infrastructure Development: Investments in urban development and transportation have spurred economic growth.
- Employment Opportunities: A bustling job market attracts a substantial and diverse workforce.
4. Maharashtra – 150.7% of National Average
- Economic Powerhouse: Maharashtra is a leading state with contributions from various industries.
- Key Industries:
- Entertainment: Mumbai, the capital city, is the heart of India’s entertainment industry.
- Manufacturing: Diverse manufacturing sectors contribute significantly to the economy.
- Finance: Mumbai serves as the financial capital of India.
- Urban Centers:
- Mumbai: A major contributor to the state’s economic growth.
- Pune: An emerging hub for IT and education, adding to the state’s income levels.
Income Disparities: Despite economic strengths, income disparities exist, impacting overall rankings.
5. Uttarakhand – 146.0% of National Average
- Economic Development: Uttarakhand has shown significant growth in recent years.
- Key Contributors:
- Tourism: Rich natural beauty attracts tourists, boosting the economy.
- Agriculture: Agricultural activities contribute to the state’s income.
- Hydropower: Exploiting natural resources for energy production adds to economic growth.
Industrial Growth: The development of industrial sectors has further enhanced per capita income.
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Final Word
These states exemplify how strategic development in key sectors such as technology, agriculture, manufacturing, and services can significantly enhance per capita income. Their economic models offer valuable insights for other regions aiming to boost economic growth and improve living standards.
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