India’s Per Capita Income

2 Aug 2025

India’s Per Capita Income

India’s per capita net national income (NNI) rose to ₹1,14,710 in 2024-25, up from ₹72,805 in 2014-15, marking a ₹41,905 gain in a decade as per Ministry of Statistics and Programme Implementation (MoSPI)

What is Per Capita Net National Income (NNI) ?

  • Per Capita NNI  is the average income of a country’s residents, calculated by dividing the Net National Income (NNI) by the total population.
    • It shows how much income each person would receive if the country’s total net income were distributed equally.
  • Net National Income (NNI): It is the Gross National Income (GNI) after deducting depreciation (consumption of fixed capital).

National Trend in Per Capita Income Steady Growth

  • The decade  (FY 14 to FY 24 ) reflects 57% growth in real terms, driven by expansion in services, manufacturing, and public investment.
  • Divergent State Performances: Differences stem from sectoral composition, infrastructure, governance efficiency, and urbanisation levels.

Key Highlights of State-Level Per Capita NSDP

  • Southern Dominance: Karnataka, Tamil Nadu, and Telangana lead due to IT services, manufacturing hubs, and export-driven sectors.
  • Western Contribution: Maharashtra benefits from industrial corridors and financial services.
  • Emerging Performers: Odisha and Andhra Pradesh show high decade growth due to industrial projects and agricultural reforms.
  • Structural Challenges in Laggards: States like Bihar, Uttar Pradesh, and Assam lag due to low industrialisation, high population pressures, and weak infrastructure.

What is Per Capita NSDP?

  • Per capita NSDP at constant prices refers to the Net State Domestic Product (NSDP) per person, adjusted for inflation to reflect real economic growth.
  • It provides a measure of the average economic output per person within a state, removing the impact of price changes over time. 
  • NSDP represents the total value of goods and services produced within a state’s borders during a specific period, after accounting for depreciation
    • The current base year for calculating per capita income as per NSDP in India is 2011-12.

Top 5 States/UTs by Per Capita NSDP (2023-24) at Constant Price

Rank State/UT Per Capita NSDP (₹) % Change (2013-14 to 2023-24)
1 Goa 3,57,611 +89.9%
2 Sikkim 2,92,339 +73.1%
3 Delhi 2,71,490 +35.3%
4 Chandigarh 2,56,912 +42.2%
5 Karnataka 1,91,970 +88.5%

Bottom 5 States/UTs by Per Capita NSDP (2023-24) at Constant Price

Rank State/UT Per Capita NSDP (₹) % Change (2013-14 to 2023-24)
1 Bihar 32,227 +41.5%
2 Uttar Pradesh 50,341 +47.9%
3 Jharkhand 65,062 +48.6%
4 Manipur 65,471 +58.0%
5 Assam 75,938 +76.6%

Conclusion

India’s rising per capita income masks stark regional disparities—growth is concentrated in urban-industrial corridors, while low-income states need structural transformation for inclusive prosperity.

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UDAAN PRELIMS WALLAH
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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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