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Per Capita Net State Domestic Product (Per Capita NSDP) measures the average economic output generated per person within a specific state or region after accounting for the depreciation of capital assets. It is calculated by dividing the Net State Domestic Product (NSDP), which represents the total value of goods and services produced within a state, by its population.
Unlike Gross State Domestic Product (GSDP), which reflects the overall production without considering depreciation, NSDP provides a more accurate representation of the state’s sustainable economic output. The “per capita” element offers insight into the average living standards and productivity of individuals within the state, making it a valuable indicator for comparing economic performance across regions and assessing the financial well-being of residents.
Higher Per Capita NSDP typically indicates better economic conditions and higher living standards, though it doesn’t account for income inequality or distribution within the population.
Goa, Delhi, and Sikkim have consistently maintained their positions as the top performer among all Indian states/UTs in terms of per capita income. Goa’s PCNSDP (at constant prices) was ₹259,444 in 2011-12 and reached ₹310,201 in 2021-22 with some fluctuations over the years. As a significant economic hub, Delhi maintained strong figures throughout, growing from ₹185,001 in 2011-12 to ₹271,019 in 2022-23, reflecting its robust service sector and urban economy. Bihar, Uttar Pradesh, and Madhya Pradesh continuously ranked among the states with the lowest per capita incomes, while Maharashtra, Haryana, and Gujarat maintained comparatively high levels of PCNSDP. Even though Bihar’s PCNSDP at constant prices increased from ₹21,750 in 2011–12 to ₹31,280 in 2022–23, it was still much lower than the national average, underscoring the state’s development difficulties. The southern states have demonstrated strong economic performance. Karnataka showed impressive growth, with its per capita income rising from ₹90,263 in 2011-12 to ₹176,383 in 2022-23, driven by its thriving IT sector and diverse economy. Tamil Nadu and Telangana also maintained robust growth trajectories, with their PCNSDP reaching ₹166,727 and ₹169,006, respectively, by 2022-23. The impact of COVID-19 is clearly evident from the 2020-21 figures, as most of the states experienced a significant decline in their per capita income during this period. Even economically advanced states like Maharashtra saw their figures drop from ₹142,211 in 2019-20 to ₹127,970 in 2020-21. However, most states showed strong recovery after 2021-22, demonstrating economic resilience. The northeastern states present an interesting pattern. Sikkim stood out with remarkably high per capita income (₹259,938 by 2022-23), while other northeastern states like Assam, Manipur, and Nagaland showed lower figures. This region’s disparity reflects these states’ varied economic development levels and financial structures. The difference between current and constant prices reveals a significant impact of inflation across different states. For instance, Delhi’s PCNSDP in current prices reached ₹444,768 in 2022-23 compared to ₹271,019 in constant prices, indicating substantial price level increases over the period. The widening gap between the more affluent and poorer states is a concerning trend. While states like Gujarat, Maharashtra, and Karnataka have shown consistent growth in per capita income, states like Bihar and Uttar Pradesh, despite showing growth, have yet to be able to close the income gap with their more affluent counterparts significantly. This persistent disparity challenges balanced regional development and economic equality in India.
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