Friday, November 30, 2012

Per Capita Income of Indian States can be used as an indicator for comparing their economic development

Barring smaller states/UTs, the highest per capita Income (per capita net domestic product) is for the State of Haryana (Rs. 108,859) and is followed by Maharashtra (Rs. 101,314), Tamil Nadu ( Rs.84,496) and Kerala (Rs. 83,725) in the year 2011-12.  Goa’s per capita income is more than that of Delhi’s by Rs. 16,840 and Chandigarh is also left behind by Rs 52,579.  Pondicherry faired better than Tamil Nadu by Rs 11,263.  Uttarakhand once was a part of Uttar Pradesh before 2000 and had per capita income of Rs. 82,193 in 2011-12 and is much more than that of present Uttar Pradesh (Rs. 30,052).  The same is the case of Haryana (Rs. 108,859) is far exceeding that of present Punjab’s per capita income of Rs. 74,606.  Bihar’s per capita income in 2011-12 is just Rs 23,435 and is minimum most, whereas its baby state Jharkhand (split in the year 2000) had the per capita income as Rs. 35,652.  Same is in the case of Chattishgarh with Rs 46,573 as per capita income, its parent state Madhya Pradesh was having only Rs. 38,669.

The message one gets is that one may develop faster economically if the states are smaller in size as compact administrative boundaries are more manageable and people can be more prosperous.

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