Per Capita Prosperity: Gujarat, Karnataka, and Telangana Spearhead Economic Development
In the aftermath of the global COVID-19 pandemic, India's economy has shown remarkable signs of recovery and growth, with Maharashtra and Uttar Pradesh leading the charge, according to a recent report by the State Bank of India (SBI) Research. This resurgence has been marked by an impressive climb in real GDP growth to 8.1 percent, a notable leap from the 5.7 percent growth rate observed in the pre-pandemic era.
The analysis provided by SBI Research attributes a significant portion of this 235 basis point increase in growth to the contributions of Maharashtra and Uttar Pradesh, which added 56 and 40 basis points respectively, while the balance of 90 basis points is accredited to other states across the nation.
Gujarat, in particular, has been spotlighted for doubling its economic output, achieving a 2.2-fold increase over the past decade. This notable expansion is mirrored, albeit to varying extents, in other states such as Karnataka, Assam, Andhra Pradesh, Odisha, Telangana, Sikkim, and Madhya Pradesh, all of which have shown substantial economic progress and dynamism.
An encouraging trend highlighted in the report is the surge in per capita income across multiple states, with Gujarat recording the most significant increase at 1.9 times its previous figure. Following suit are Karnataka, Andhra Pradesh, Telangana, and Assam, all demonstrating robust economic development. In terms of per capita income growth, Gujarat, Karnataka, and Telangana have emerged as frontrunners, marking their territories as economic bastions within the country.
Despite these positive trends, states such as Uttar Pradesh, Chhattisgarh, Bihar, and Madhya Pradesh have shown steady yet less dramatic increases in per capita income growth. On the other hand, Jharkhand, Rajasthan, West Bengal, Maharashtra, Punjab, Delhi, and Goa have witnessed a slowdown in the pace of their per capita income growth.
Another noteworthy finding from the SBI Research report is the significant reduction in state-wide inequality in terms of per capita net state domestic product (NSDP) from FY19 to FY22. The inequality index decreased from 0.523 to 0.480, suggesting a move towards greater economic equality and inclusivity across the Indian states.
The SBI Research team has underscored the crucial role of sustained policy support and targeted interventions in maintaining and bolstering economic growth across all Indian states. They advocate for a concerted effort between the central and state governments to diminish regional disparities and promote strategies for inclusive growth.
This comprehensive report by SBI Research offers valuable insights for policymakers, economists, and stakeholders, shedding light on the evolving economic landscape of India and paving the way for informed development initiatives and strategies.