Per Capita Income of Indian States | Updated Overview (2024–25)

Per Capita Income (PCI) is one of the most important indicators used to understand the economic well-being of a region. In simple terms, PCI refers to the average income earned by each person in a state or country in a given year. It is calculated by dividing the total income of a state by its total population. Because it reflects how much income is available per person, PCI is widely used to compare economic performance across states and regions.

Why Per Capita Income Matters | Per Capita Income Of Indian States

Per Capita Income is more than just a number it directly connects to the standard of living, employment opportunities, consumption capacity, and overall development of a region.
A higher PCI usually indicates:

• Better income opportunities
  
• Higher productivity
  
• Improved infrastructure and services
  
• Better access to education and healthcare
  

Similarly, a lower PCI may signal challenges such as unemployment, slow industrialization, or lack of investment. For this reason, PCI is a key measure used by economists, policymakers, and researchers to assess economic growth and inter-state disparitiesin India.

What This Blog Covers | Per Capita Income Of Indian States

This blog provides a complete, updated overview of the Per Capita Income of Indian States for 2024–25, using reliable references such as Chegg India, Statistics Times, and Jagran Josh. You’ll learn:

• The latest PCI rankings of all major Indian states and Union Territories
  
• Why some states perform significantly better than others
  
• The major factors responsible for income gaps between states
  
• Trends in PCI growth over recent years
  
• Limitations of PCI as an economic indicator
  
• Insights on how India can reduce regional inequality
  

Whether you are a student, researcher, policymaker, or just someone curious about India’s economic landscape, this guide will help you understand how income, development, and state economies are evolving in 2024–25.

Latest Per Capita Income Ranking of Indian States & UTs (2024–25)

Analysis of Per Capita Income by Region 2024-2025 provides a useful overview of relative economic strength throughout India, with well-developed industrialised/professional sectors identified in the high-ranking states and limited opportunity for development or growth for the lower-ranking states.

Below is a detailed breakdown of the highest and lowest PCI states according to the latest available data from Chegg India, Statistics Times, and other reliable economic sources.

Top 5 Highest Per Capita Income States/UTs (2024–25)

1. Sikkim – ₹5,87,743 (Highest in India)

Sikkim continues to hold the top position due to its small population, strong hydroelectric power sector, tourism revenue, and efficient governance. Its economic output is high relative to its population, which pushes the PCI upward.

2. Goa – ₹4,92,648

Goa has a highly developed tourism industry, hospitality sector, and service-based economy. Its small population and high inflow of visitors contribute to a high income per person. Mining and exports also play a significant role.

3. Delhi (Union Territory) – ₹4,61,910

Delhi benefits from being the national capital with strong IT, retail, transport, financial services, and government sectors. It has a high concentration of businesses, better infrastructure, and high-paying jobs, leading to superior PCI.

4. Haryana – Industrial & Agricultural Powerhouse

Haryana consistently ranks high due to its robust manufacturing hubs, especially in Gurugram and Faridabad, strong automobile and IT industries, and high agricultural productivity. The presence of MNCs and rapid urbanization boosts income levels significantly.

5. Karnataka / Telangana – IT & Services Driven Growth

Both states show exceptional growth due to:

• Thriving IT and software industries (Bengaluru, Hyderabad)
  
• Strong startup ecosystem
  
• High-value service sector jobs
  
• Steady industrial development
  

This combination pushes their PCI above most other large states in India.

Lowest Per Capita Income States (2024–25)

Not all states experience the same rate of economic growth. Some struggle due to limited Industrialization, larger populations, and slower infrastructure development.

1. Bihar – Consistently the Lowest PCI in India | Per Capita Income Of Indian States

Bihar’s PCI remains at the bottom due to:

• Heavy reliance on agriculture
  
• Low industrial presence
  
• High population density
  
• Inadequate investment in manufacturing and services
  

Despite improvements in road networks and governance, income levels remain low.

2. Uttar Pradesh  Large Population, Slow GDP Growth | Per Capita Income Of Indian States

Uttar Pradesh, India’s most populous state, faces multiple challenges:

• Economic output spread across a very large population
  
• Slow growth of industries
  
• Lower urbanization rate compared to high-PCI states
  
• Limited access to high-paying jobs
  

These factors pull its PCI down.

3. Jharkhand Limited Industrial Diversification | Per Capita Income Of Indian States

Although rich in minerals, Jharkhand’s income remains low because:

• Industries focus mainly on mining
  
• Limited value-added manufacturing
  
• Slow growth in services and technology sectors
  
• Employment opportunities are not evenly distributed
  

This restricts overall income growth.

Comparative PCI Table (2024–25) | Per Capita Income Of Indian States

The following table offers a clear comparison of how different states and UTs perform in terms of PCI Per Capita Income Of Indian States:

Why Do Some States Have Higher PCI? Key Factors Explained

Per Capita Income (PCI) varies significantly across Indian states, and this gap is not random. It is the result of several structural, economic, and socio-geographical factors. Understanding why certain states consistently report higher PCI helps explain India’s regional economic disparities.

Below are the major reasons that contribute to higher income levels in certain states and Union Territories.

1. Industrial & Services Sector Development | Per Capita Income of India

States such as Karnataka, Telangana, Tamil Nadu, and Haryana have built strong industrial and service-based economies. This creates a large number of high-paying jobs and increases the overall economic output.

Why these sectors matter:

• IT and Software Services: Bengaluru and Hyderabad are global IT hubs, generating high salaries and attracting skilled talent.
  
• Manufacturing & Automobile Industries: Chennai and Gurugram have major industrial clusters.
  
• Finance, Startups, and Corporate Offices: These states attract investment from multinational corporations.
  

According to insights from Jagran Josh, states with diversified industries and advanced services sectors naturally record higher PCI because they create more value per worker compared to agriculture-heavy economies.

2. Population Size & Density | Per Capita Income of India

Population plays a major role in determining PCI because the formula divides total income by the number of people.

Smaller or moderately populated regions such as:

• Goa
  
• Sikkim
  
• Delhi (UT)
  

show higher PCI because:

• Their total income is distributed among fewer people.
  
• Government services and infrastructure are easier to manage.
  
• Economic output per person remains high even with limited industries.
  

On the other hand, high-density states like Uttar Pradesh and Bihar see low PCI because their economic output is divided among very large populations.

3. Infrastructure & Investment | Per Capita Income of India

Good infrastructure attracts new industries, boosts productivity, and creates job opportunities. States with high PCI typically have:

• Well-developed road and transport networks
  
• Industrial corridors and Special Economic Zones (SEZs)
  
• Stable electricity and logistics systems
  
• Investor-friendly policies and ease of doing business
  

Examples:

• Haryana thrives due to NCR connectivity and major business hubs like Gurugram.
  
• Tamil Nadu has strong ports, highways, and manufacturing zones.
  
• Karnataka leads in tech infrastructure and innovation hubs.
  

Better infrastructure directly leads to higher wages, more business opportunities, and overall growth in PCI.

4. Education & Skill Development | Per Capita Income of India

States that invest heavily in education and skill development build a more capable workforce. This leads to:

• Higher-quality jobs
  
• Better productivity
  
• Increased salaries
  
• More innovation and entrepreneurship
  

For example:

• Karnataka and Telangana have strong engineering, medical, and management institutions that fuel their IT and industrial sectors.
  
• Tamil Nadu has one of the highest literacy rates and a robust technical education ecosystem.
  

A skilled population earns more, contributes more to the economy, and raises the state’s PCI.

5. Historical & Geographical Factors | Per Capita Income of India

Both history and geography play a significant role in shaping economic outcomes.

Tourism-driven economies

States like:

• Goa
  
• Sikkim
  

benefit from a strong tourism industry, which brings income from hospitality, travel services, retail, and cultural tourism. This directly boosts per capita income.

Mineral-rich but under-utilized states | Per Capita Income of India

States such as:

• Jharkhand
  
• Chhattisgarh
  

have abundant natural resources (coal, iron ore, bauxite), but conditions like:

• inadequate industrial diversification
  
• weak infrastructure
  
• low value-addition industries
  
• limited private investment
  

reduce their potential to convert resources into high-income opportunities for people.

Thus, geography creates opportunities, but development strategies determine how effectively those opportunities are used.

PCI Growth Trends Over the Years: What the Data Shows

Per Capita Income Of Indian States has shown steady improvement over the past decade, but the growth has not been uniform across all states. Some regions have accelerated rapidly due to strong economic foundations, while others continue to lag because of structural and socio-economic challenges. Understanding these trends helps in analyzing India’s economic development and identifying which areas require policy attention.

Long-Term Progress

Over the last ten years, most Indian states have experienced consistent increases in PCI, driven by:

• Higher economic output
  
• Expansion of industries and services
  
• Better infrastructure
  
• Rising literacy and employment levels
  

However, this growth has not been evenly spread. The most impressive gains are seen in Southern and Western India, especially in states like:

• Karnataka – boosted by IT, startups, and tech exports
  
• Telangana – rapid rise in IT services, pharma, and urban development
  
• Tamil Nadu – strong manufacturing and automobile sectors
  
• Maharashtra – financial capital of India with diversified industries
  
• Gujarat – strong industrial base and business-friendly environment
  

These states have high investment levels, globally competitive industries, and strong service sectors, which allow them to maintain rapid PCI growth.

Persistent Regional Disparities

Despite overall progress, regional imbalances remain one of India’s biggest economic challenges.

States in Eastern and Central India such as Bihar, Uttar Pradesh, Jharkhand, Chhattisgarh, and Madhya Pradesh continue to lag behind. The key reasons include:

• Low industrialization: Industries and manufacturing hubs are limited.
  
• Agriculture dependency: A large part of the population relies on low-income farming.
  
• Higher poverty levels: Lower purchasing power slows economic growth.
  
• Slower urbanization: Fewer cities generating high-value jobs.
  
• Weak infrastructure: Poor road networks, limited logistics capacity, and lower investments.
  

Because of these challenges, the PCI of these states grows at a slower pace, widening the gap between developed and developing regions.

Impact of Government Policies

Government policies play a crucial role in shaping the economic performance of states. Over the years, states that have implemented strong governance, pro-industry reforms, and infrastructure improvements have witnessed faster PCI growth.

Examples include:

• Gujarat: Known for ease of doing business, industrial corridors, and export-led growth.
  
• Telangana: Proactive IT policies, tech parks, and investor-friendly regulations.
  
• Karnataka: Focus on innovation, startups, and higher education.
  
• Haryana: Policies supporting manufacturing, logistics, and industrial townships.
  

On the other hand, states with inconsistent governance, slower reforms, and inadequate infrastructure development fail to attract private investment—resulting in slower PCI improvements.

Effective policies such as:

• Industrial promotion schemes
  
• Skill development missions
  
• Better transport and logistics planning
  
• Ease of doing business initiatives
  
• Agricultural reforms
  

can significantly elevate a state’s per capita income over time.

Limitations of PCI | Why It Doesn’t Show the Full Picture

While Per Capita Income (PCI) is a widely used indicator to measure the economic performance of a state, it is not a perfect metric. PCI only gives an average income per person, and averages often hide deeper economic inequalities, social gaps, and development challenges. To understand a state’s true economic health, PCI should be studied along with other indicators.

Below are the major limitations of using PCI as the sole measure of development.

PCI Is Only an Average

PCI divides the total income of a state by its population, which means:

• A handful of very high-income earners can artificially inflate the average.
  
• It does not show how income is distributed among the population.
  

Example:
Delhi and Haryana have high PCI, but income distribution within these regions is uneven—some areas are extremely wealthy, while others remain underdeveloped.

This is why PCI alone cannot reflect the economic status of the majority of people.

Rural vs. Urban Disparity Is Hidden

States with large urban centers (like Bengaluru, Mumbai, Hyderabad, Delhi) show high PCI because cities generate:

• High-value jobs
  
• More businesses and industries
  
• Greater consumption and economic activity
  

However, rural regions in the same states may experience:

• Low agricultural income
  
• Limited job opportunities
  
• Poor living standards
  

PCI fails to capture this urban-rural divide, making it a misleading indicator when used alone.

PCI Does Not Measure Poverty or Unemployment

A state may have a relatively high PCI but still face:

• High unemployment
  
• Underemployment
  
• Significant poverty
  
• Income inequality
  

For example, some states with strong industries still have pockets of extreme poverty. PCI does not reveal how many people lack essential resources.

Social Indicators Are Not Included

Economic well-being is closely linked to social development.
However, PCI does not measure:

• Literacy rate
  
• Health outcomes
  
• Life expectancy
  
• Housing quality
  
• Access to clean water or sanitation
  
• Gender inequality
  

For this reason, economists often use HDI (Human Development Index) and Gini coefficient along with PCI for a balanced view.

Need for Additional Indicators

To understand true development, PCI must be studied alongside:

• Median income → shows how much a “typical person” earns
  
• Gini coefficient → measures income inequality
  
• HDI → combines education, income, and health
  
• Employment rate → shows access to jobs
  
• Poverty rate → measures basic standard of living
  

Only then can policymakers identify which regions need urgent attention and what kind of reforms are required.

Case Studies | Why Some States Lead & Others Lag

Understanding India’s economic landscape requires more than just looking at numbers. By examining real examples, we can clearly see why certain states consistently achieve high Per Capita Income (PCI) while others struggle to catch up. These case studies highlight how factors such as industrial growth, governance, education, geographic advantages, and population challenges shape economic outcomes.

Below are the key examples that explain India’s income disparities.

High-Performing States – Haryana, Karnataka, Telangana

1. Haryana – Strong Industrial and Urban Growth

Haryana is one of India’s richest states due to:

• Major industrial hubs like Gurugram and Faridabad
  
• Presence of multinational companies
  
• High agricultural productivity
  
• Proximity to Delhi NCR
  
• Well-developed transport and logistics infrastructure
  

The combination of manufacturing, IT services, and urbanization pushes Haryana’s PCI far above the national average.

2. Karnataka – India’s Technology Powerhouse

Karnataka, led by Bengaluru, has built a globally competitive technology ecosystem:

• Home to top IT companies and startups
  
• Advanced R&D centers
  
• Strong educational institutions
  
• High-skilled workforce
  
• Steady investment in innovation and tech parks
  

These sectors generate high-paying jobs, significantly raising the state’s PCI.

3. Telangana – Fast-Growing Service and Pharma Sectors

In just a decade since its formation, Telangana has shown remarkable economic performance:

• Hyderabad as a major IT and biotech hub
  
• Expanding pharmaceutical and manufacturing industries
  
• Government policies favoring businesses and startups
  
• High urban development and infrastructure growth
  

As a result, Telangana ranks among India’s fastest-growing states in PCI.

Low-Performing States – Bihar, Uttar Pradesh, Jharkhand

1. Bihar – Structural Barriers to Economic Growth

Bihar consistently records India’s lowest PCI due to:

• Limited industrialization
  
• High dependence on agriculture
  
• Inadequate infrastructure
  
• Low literacy and skill levels
  
• High population density
  

Despite improvements in governance and road networks, the economic base remains too small to lift PCI significantly.

2. Uttar Pradesh – Large Population, Low Per Capita Output

UP is India’s most populous state, and this creates challenges:

• Economic growth gets distributed among a very large population
  
• Urbanization is slower compared to high-PCI states
  
• Industries are concentrated in only a few districts
  
• Rural areas still depend heavily on agriculture
  

While GDP is rising, PCI remains low because per-person income stays limited.

3. Jharkhand – Resource-Rich But Not Income-Rich

Jharkhand has abundant mineral resources like coal, iron ore, and copper, yet its PCI is low due to:

• Limited diversification beyond mining
  
• Low value-addition industries
  
• Low-skilled workforce
  
• Poor connectivity in many regions
  
• Limited private investment
  

The state has potential, but underutilization of resources restricts overall income growth.

Key Insights from These Case Studies

• High-PCI states benefit from strong industries, skilled workforces, and better infrastructure.
  
• Low-PCI states face challenges like high population, slow industrial growth, and lower human development.
  
• Economic opportunity is directly tied to governance, investment climate, and long-term development strategy.
  
• India’s growth story is uneven — some states advance rapidly, while others need major reforms to catch up.

How Governments Can Reduce Inter-State Income Disparities

The growing gap between high-income and low-income states is one of India’s most significant economic challenges. While southern and western states Per Capita Income Of Indian States continue to advance rapidly, several eastern and central states struggle to keep pace. To build a more balanced and inclusive economy, governments at both the central and state levels must take strategic steps to reduce disparities in Per Capita Income (PCI).

Below are the most effective strategies to address regional economic inequality.

1. Improve Infrastructure in Backward Regions

Infrastructure forms the backbone of economic growth. States with weak roads, electricity access, logistics, and connectivity experience slow development. To close the gap, governments must invest in:

• Highways and rural roads
  
• Rail and freight corridors
  
• Reliable power supply
  
• Digital connectivity and broadband
  
• Transport infrastructure linking villages to markets
  

Improved infrastructure attracts industries, improves productivity, and generates jobs—directly boosting PCI.

2. Encourage Private Investment & Industrial Development

Low-income states must become more investment-friendly by:

• Reducing bureaucratic hurdles
  
• Strengthening “ease of doing business” policies
  
• Offering tax benefits and incentives for new industries
  
• Creating industrial corridors, SEZs, and manufacturing clusters
  

When private companies invest in factories, IT parks, and service hubs, income levels rise significantly.

3. Strengthen Education & Skill Development

A skilled workforce earns more and contributes more to GDP. To reduce disparities, states must focus on:

• Primary and secondary education quality
  
• Vocational training centers
  
• Skill development programs (IT, manufacturing, services)
  
• Technical and engineering colleges
  
• Digital literacy programs
  

Higher skills → better jobs → higher PCI.

4. Boost Rural Development & Job Creation

Many low-PCI states have large rural populations dependent on low-income agriculture. Governments can improve rural income through:

• Modern agricultural practices
  
• Irrigation and water management
  
• Agro-processing industries
  
• Rural manufacturing hubs
  
• Self-help groups and micro-enterprises
  

Creating non-farm jobs in rural areas is essential to raise overall state income levels.

5. Promote Industry Diversification

Some states rely heavily on one sector—like Bihar on agriculture or Jharkhand on mining. Diversification is key for sustained growth.

Governments should promote:

• Manufacturing
  
• IT services
  
• Food processing
  
• Tourism
  
• Textiles
  
• Renewable energy
  

A diversified economy is more resilient and generates more stable income for citizens.

6. Improve Governance and Transparency

States with strong governance consistently show higher PCI. Important steps include:

• Reducing corruption
  
• Faster project approvals
  
• Digital governance and transparency
  
• Accountability in public spending
  
• Better law and order
  

Investors and industries are more likely to enter states with predictable and transparent governance.

7. Focus on Social Development Indicators

Income alone cannot grow unless people have access to essential services. Governments must improve:

• Healthcare access
  
• Nutrition
  
• Housing
  
• Sanitation
  
• Drinking water
  
• Urban planning
  
• Women’s workforce participation
  

Better social indicators lead to a productive labor force, which eventually raises PCI.

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Conclusion

India’s long-term economic sustainability depends on inclusive growth(Per Capita Income of Indian States). Reducing inter-state disparities is not merely a social goal but a functional necessity for the country to achieve its full economic potential. The “India Growth Story” will ultimately be judged by how effectively it uplifts its lagging regions to match the prosperity of its leaders.