India, one of the world’s fastest-growing economies, presents a striking contrast to regional economic disparities. In 2024, the country’s average per capita income was estimated at ₹184,000, with significant variations across states. Sikkim led the rankings with the highest per capita income at ₹588,000, while Bihar stood at the bottom with just over ₹60,000.
While states like Maharastra, Tami Nadu, and Gujarat drive India’s economic growth and contribute significantly to the national GDP, many others face persistent challenges. Regions in the northeast, central, and eastern parts of the country struggle with low per capita income, inadequate infrastructure, and limited industrial development, highlighting the uneven distribution of economic progress across India.
States with the lowest per capita income in India
As per the per capita income data for Indian states in FY 2024, published by the Statista Research Department on October 8, 2024, here is a list of states ranked in ascending order, starting with the lowest.
1. Bihar (60.34)
Bihar consistently ranks as one of the poorest states in India, with a per capita income significantly below the national average. Despite efforts in sectors like agriculture and education, Bihar struggles with poor industrialization and high unemployment rates. The per capita income of Bihar in 2023-24 is estimated to be ₹60,337. This is an increase from 2023 when the per capita income was ₹53,478,171.
2. Uttar Pradesh (93.51)
With its large population and slow industrial growth, Uttar Pradesh also ranks low in terms of per capita income. The states face challenges such as low literacy rates, inadequate healthcare facilities, and significant unemployment. The per capita income of Uttar Pradesh in 2024 is estimated to be ₹105,000. This is an increase from 2023 when the per capita income was ₹84,125.775
3. Jharkhand (105.27)
Known for its mineral wealth, Jharkhand paradoxically remains economically backward due to poor governance, corruption, and insufficient development initiatives. Jharkhand’s per capita income in 2022-23 was ₹91,874 at current prices, and in 2024 it was estimated to be over ₹105.27.
4. Manipur (111.85)
Despite its rich cultural heritage, Manipur faces economic challenges, including poor infrastructure and limited industrial activity. Its remote location further hampers growth prospects. The per capita income of Manipur in 2022-2023 was ₹111,853 which is an increase from the previous year’s per capita income of ₹98,825.543.
5. Assam (135.79)
The state has observed gradual growth, over the past few years. The per capita income of Assam in 2022-23 was estimated to be ₹112,328, which was an 11.8% increase from the previous year (2021-22). In 2024-25, the per capita income is estimated to be ₹182,600, or US$2,200.
6. Meghalaya (136.95)
With limited infrastructure and industrial development, Meghalaya also ranks low on the per-income scale. The state’s dependency on central government funds underscores its fragile economic base. However in 2022-23, the per capita GDSDP of Meghalaya was ₹1,26,924, and in 2023-24, the per capita GSDPS of Meghalaya is estimated to be ₹1,39,602, which is 10% increase from 2022-23.
7. Jammu and Kashmir (142.14)
The per capita income of Jammu and Kashmir in 2023-24 was ₹142,137.891, which is an increase from 2023’s ₹130,491.725. Although this figure mirrors a vast constructive change in the Indian state of Jammu and Kashmir. The government is also coming up with major employment opportunities to channel youth into nation-oriented programs.
8. Madhya Pradesh (142.57)
The GDP per capita for Madhya Pradesh in 2023-2024 is ₹156,381 and the NSDP per capita in 2024 is ₹142,565.149. This is an increase from the previous year's NSDP per capita of ₹132,010.138. The state had certain educational and employment challenges but still, it is on the verge of improvisation.
9. Nagaland (145.54)
Nagaland’s economy primarily relies on its unique handloom and government services, with minimal industrial growth. The state’s geographical isolation and political instability continue to hinder its economic development. According to Nagaland’s economic survey the per capita income of Nagaland in 2023-2024 is estimated to be ₹157,641 which is an increase of 11.20% from the previous year's PCI of ₹141,759.
Key factors behind economic backwardness
- Lack of industrialization: many of these states have not been able to establish a strong industrial base, relying heavily on agriculture and government aid.
- Poor infrastructure: inadequate road networks, poor electricity supply and limited access to quality healthcare and education have perpetuated economic stagnation.
- Political instability and governance issues: corruption and political turmoil have obstructed consistent policy implementation and economic reforms.
- Geographical challenges: states in the northeast face logistical and connectivity challenges due to their remote locations.
The role of the central government in addressing regional disparities.
The central government plays a pivotal role in addressing regional economic imbalance by allocating resources, funding infrastructure projects, and introducing welfare schemes. however, disparities in fund allocation and developmental priorities remain evident. While some states receive significant investments and policy focus, others are often overlooked, resulting in a widening economic gap. To ensure balanced growth across all regions, the central government must adopt a more equitable distribution strategy, prioritizing investments in education, healthcare, and industry in underdeveloped states. Transparent governance, strict monitoring of funds utilization, and region-specific development plans are essential for fostering inclusive growth.
Government initiatives and challenges
The Indian government has launched various schemes and initiatives, such as the Aspirational Districts Programme and Skill India, to bridge the economic divide. Special finance packages, infrastructure projects, and industrial corridors have been introduced to boost growth in economically weaker states. However, the pace of implementation remains slow, and systematic challenges persist.
India’s economic growth story remains incompetent without addressing the developmental challenges its poorest states face. Bridging the economic divide requires targeted investments in education, healthcare, and infrastructure, coupled with efficient governance and transparency. As India marches towards becoming a $5 trillion economy, ensuring balanced regional growth will be critical for sustainable and inclusive development.