Understanding India's Richest and Poorest States: Southern Leadership in GDP Growth vs West Bengal's Decline

Tuesday, 17 September 2024, 22:51

India's richest and poorest states showcase stark contrasts in economic performance. The southern states lead the GDP race, while West Bengal experiences a sharp decline. Recent data from the EAC-PM reveals significant disparities across regions, urging a closer look at the economic dynamics. This article delves into the trends and implications of these developments.
Indiatoday
Understanding India's Richest and Poorest States: Southern Leadership in GDP Growth vs West Bengal's Decline

The recent report by the Economic Advisory Council to the Prime Minister (EAC-PM) highlights the distinct economic performance of India's richest and poorest states. The southern states, including Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu, now contribute a significant portion—30%—to India's GDP. This growth traces back to the liberalisation of India's economy in the 1990s, which transformed these states into economic powerhouses.

In contrast, West Bengal, formerly a thriving economic center, has seen its GDP contribution plummet from 10.5% in 1960-61 to just 5.6%. This troubling trend raises questions about its industrial policies and political climate. Despite a strategic geographical advantage, the state has failed to maintain its economic momentum, leading to a dramatic drop in per capita income.

Other states, like Punjab, have portrayed a different story with flattening growth rates, while Haryana's economy has surged. Though Maharashtra remains the top GDP contributor, its share is also declining. The report calls for a comprehensive investigation into the varying economic trajectories of these states as disparities continue to widen.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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