India’s Per Capita NSDP by State (2023–24): Economic Ranking, Regional Gaps, and Policy Pathways
India’s rapid economic transformation in the 21st century has been marked by uneven regional growth. While some states have emerged as global economic hubs, others continue to lag behind in per capita income. To understand this divergence, economists and policymakers rely on indicators like the Net State Domestic Product (NSDP) and Gross State Domestic Product (GSDP).
Among these, Per Capita NSDP offers perhaps the clearest snapshot of how the average citizen in a state is faring economically. In this article, we explore what NSDP and GSDP mean, compare the performance of Indian states and union territories based on per capita NSDP for FY 2023–24, and analyze the broader implications.
Understanding GSDP vs. NSDP
Before diving into rankings, let’s clarify the difference between two crucial economic indicators:
Gross State Domestic Product (GSDP)
- GSDP is the total economic output of a state, i.e., the market value of all final goods and services produced within a state in a given year.
- It is the state-level counterpart of GDP.
- GSDP = Output of all economic activities in a state (at current or constant prices).
Net State Domestic Product (NSDP)
- NSDP is derived from GSDP by deducting depreciation (consumption of fixed capital).
- It reflects actual income available to residents and businesses in a state.
- NSDP = GSDP – Depreciation.
- Why NSDP Is More Useful Per Capita
- While GSDP shows total output, NSDP is a better measure of income.
- NSDP per capita accounts for population and asset wear-and-tear, giving a realistic view of average economic welfare.
Per Capita NSDP Rankings by State/UT – 2023–24
Here’s the rank-wise list of Indian states and UTs based on Per Capita NSDP at Current Prices for FY 2023–24:
| Rank | State / UT | Per Capita NSDP (₹) |
|---|---|---|
| 1 | Sikkim | ₹5,87,743 |
| 2 | Goa | ₹4,92,648 |
| 3 | Delhi | ₹4,61,910 |
| 4 | Chandigarh | ₹3,99,654 |
| 5 | Telangana | ₹3,56,564 |
| 6 | Karnataka | ₹3,32,926 |
| 7 | Haryana | ₹3,25,759 |
| 8 | Tamil Nadu | ₹3,15,220 |
| 9 | Gujarat | ₹2,97,722 |
| 10 | Kerala | ₹2,81,001 |
| 11 | Maharashtra | ₹2,63,974 |
| 12 | Andhra Pradesh | ₹2,31,553 |
| 13 | Uttarakhand | ₹2,16,925 |
| 14 | Punjab | ₹2,13,008 |
| 15 | Himachal Pradesh | ₹2,07,072 |
| 16 | Arunachal Pradesh | ₹2,02,694 |
| 17 | Nagaland | ₹1,89,858 |
| 18 | Mizoram | ₹1,88,718 |
| 19 | Tripura | ₹1,65,011 |
| 20 | West Bengal | ₹1,60,182 |
| 21 | Manipur | ₹1,42,214 |
| 22 | Rajasthan | ₹1,41,651 |
| 23 | Assam | ₹1,34,323 |
| 24 | Meghalaya | ₹1,33,792 |
| 25 | Chhattisgarh | ₹1,33,282 |
| 26 | Odisha | ₹1,32,197 |
| 27 | Madhya Pradesh | ₹1,26,249 |
| 28 | Jammu & Kashmir | ₹1,18,620 |
| 29 | Jharkhand | ₹1,05,274 |
| 30 | Uttar Pradesh | ₹93,514 |
| 31 | Bihar | ₹60,337 |
High Performers: What Drives Their Success?
1. Sikkim
A small state with a focused development strategy—Sikkim leverages hydropower, tourism, organic farming, and central funding to top the list. A small population magnifies per capita figures.
2. Goa
High revenue from tourism, mining, and pharma contribute to its impressive ₹4.92 lakh per capita NSDP. Goa also benefits from strong governance and urban amenities.
3. Delhi
India’s capital is an economic powerhouse in services, government employment, retail, and real estate, pushing its per capita NSDP above ₹4.6 lakh despite population pressure.
4. Telangana & Karnataka
Both states have tech cities—Hyderabad and Bengaluru—which attract global IT giants, skilled professionals, and high investments. High FDI inflows boost the state economies significantly.
The Bottom Tier: Bihar, UP, and Jharkhand
1. Bihar
Despite being densely populated and historically rich, Bihar has a low industrial base, poor infrastructure, and high dependence on agriculture and remittances. At ₹60,337 per capita, it remains the poorest state by this metric.
2. Uttar Pradesh
India’s most populous state is improving in infrastructure (e.g., expressways), but income remains low at ₹93,514 per capita. Urban growth in NCR is offset by rural stagnation.
3. Jharkhand
Though mineral-rich, it has not translated natural wealth into widespread income. Weak industrialization, tribal marginalization, and policy inertia drag its NSDP down.
Regional Patterns & Observations
Southern Advantage
Southern states (Tamil Nadu, Karnataka, Telangana, Kerala) show sustained prosperity. Reasons:
- Strong manufacturing + services sectors
- Education and skill development
- Progressive governance and better public health
Northern Challenge
Bihar, UP, MP, and Jharkhand remain in the bottom tier despite high political visibility. Poor human development indicators, governance issues, and population load hinder income growth.
Small States, Big Numbers
Union Territories and smaller states like Sikkim, Chandigarh, and Delhi shine due to their compact populations, urbanization, and service-sector dominance.
NSDP vs GSDP in Policy Context
| Metric | What it Measures | Best Used For |
|---|---|---|
| GSDP | Total output | Investment potential, industry trends |
| NSDP | Net income | Standard of living, income comparisons |
GSDP is crucial for measuring size and scale—states like Maharashtra and UP top in GSDP. But when it comes to NSDP per capita, these states fall behind, reflecting that size ≠ prosperity.
Example:
| State | GSDP Rank | NSDP per capita Rank |
|---|---|---|
| Maharashtra | 1 | 11 |
| UP | 3 | 30 |
| Bihar | 14 | 31 |
This mismatch shows why NSDP per capita is a better welfare metric than sheer output.
Challenges and Inequalities
- Demographic Stress: High population states like UP and Bihar suffer from a denominator problem—total output gets divided across too many people.
- Infrastructure Gaps: Poor road, rail, digital, and power infrastructure deters private investment.
- Educational Deficits: Lack of skilled workforce reduces value-added activity.
- Regional Brain Drain: Skilled people from laggard states migrate to metros, further weakening local economies.
Policy Recommendations
- Targeted Fiscal Transfers
Use NSDP per capita data to refine central fund allocations via Finance Commission. - MSME Promotion
Create industrial clusters in Tier-2 and Tier-3 cities of backward states to boost employment. - Skill Development
National Skill Development Corporation (NSDC) should prioritize low-NSDP states with tailored training. - Urbanization Drive
Support smaller cities and smart towns to absorb rural labor and attract services. - Education Reform
Universal quality education, especially for women, can trigger long-term productivity gains.
Outlook: Bridging the Divide
India’s growth story must shift from being regionally concentrated to geographically inclusive. While it is commendable that cities like Bengaluru and Hyderabad are globally recognized, the future of India depends on states like Bihar, UP, Odisha, and MP also realizing their economic potential.
This would require:
- Better federal coordination
- Performance-linked funding
- Incentivizing private sector expansion beyond metros
Final Thoughts
In a democracy as large and complex as India, per capita NSDP is more than a statistic—it’s a window into social justice, equitable growth, and governance quality. Policymakers must look beyond GDP headlines and prioritize states where average incomes are low, even if total output seems significant.
Only when income disparities shrink, and all Indians share in the nation’s prosperity, can India truly claim to be a global economic leader.
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