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Gujarat Leads India's Prosperity, Bihar Remains Poorest State
5 Aug
Summary
- Gujarat has the highest per capita income, followed by Karnataka, Haryana, and Tamil Nadu
- Bihar remains the poorest state, with per capita income less than a fifth of Gujarat's
- Bifurcation of states has impacted their economic performance
As of August 5th, 2025, the latest data on India's state-level economic performance reveals a stark contrast between the country's most prosperous and poorest states.
Gujarat has emerged as the clear leader, with a per capita net state domestic product (NSDP) of ₹1.96 lakh in the 2023-24 fiscal year. This places Gujarat ahead of other top-performing states like Karnataka (₹1.92 lakh), Haryana (₹1.83 lakh), and Tamil Nadu (₹1.80 lakh).
In contrast, Bihar remains the country's poorest state, with a per capita NSDP of just ₹32,227 in 2023-24. This means that the average income earned by a person in Bihar is less than a fifth of what their counterparts in Gujarat earn.
The data also shows that the bifurcation of states has had a significant impact on their economic trajectories. For instance, Telangana's relative per capita income is now 1.94 times the national average, while the ratio for the older state of Andhra Pradesh stands at 1.32 times. Similarly, the newly formed state of Uttarakhand has a per capita income 1.41 times the all-India level, compared to 0.51 times for the larger state of Uttar Pradesh.
Despite these regional disparities, the overall picture for India reveals a more prosperous West and South, with some states in the North, such as Punjab, Haryana, Uttarakhand, and Himachal Pradesh, also performing relatively well. The robust performance of industrial, services, and information technology sectors has been a key driver of growth in the southern and western states, while the agriculture sector has helped states like Punjab and Haryana maintain their economic dominance.
