Guwahati : Four decades ago, Sikkim’s per capita income was below the national average. Today, it has soared to the highest in the country.
A report titled “Relative Economic Performance of Indian States: 1960-61 to 2023-24,” released by the Economic Advisory Council to the Prime Minister (EAC-PM), reveals that Sikkim’s per capita income, which was 85.8% of the national average in 1980-81, has surged to 320% in 2023-24, the highest in India.
Authored by Sanjeev Sanyal and Aakanksha Arora, the working paper focuses on the relative performance of states, using two key indicators—share in India’s GDP and relative per capita income. It examines the economic performance of Indian states over the past six and a half decades, providing insights into how the average income of individuals in each state compares to the national average.
“In 1980-81, Sikkim’s per capita income was below the national average. However, the state has experienced remarkable growth, particularly in the last two decades, with its per capita income surging from around 100% of the national average in 2000-01 to 320% in 2023-24,” the report states.
Meanwhile, Assam’s per capita income, which was slightly above the national average at 103% in 1960-61, fell to 61.2% in 2010-11. Since then, it has recovered, reaching 73.7% in 2023-24.
Among small states, both Sikkim and Goa have demonstrated significant improvements. Sikkim’s per capita income rose from 93% of the national average in 1990-91 to 319% by 2023-24. Similarly, Goa’s per capita income nearly doubled from 144% in 1970-71 to 290% in 2023-24, making them India’s richest states in terms of per capita income.
Sikkim has successfully leveraged its natural resources, particularly its rivers, to become a leader in India’s green energy sector. The state’s focus on maintaining a pristine environment also made it India’s first fully organic state, boosting agricultural exports and eco-tourism.
Despite this, Sikkim’s share of India’s national GDP remains small, at just 0.2%, reflecting the small size of its economy. Assam’s share of the national GDP has declined from 2.6% in 1960-61 to 1.9% today.
In other Northeastern states, Arunachal Pradesh has a relative per capita income of 118% of the national average, Manipur’s is 66%, Meghalaya’s 73%, Nagaland’s 129%, and Tripura’s 96.5%.
The report highlights that western and southern regions of India have consistently outperformed other parts of the country. Maharashtra and Gujarat, in particular, have shown strong economic performance, while southern states have significantly outpaced others post-economic liberalization, accounting for about 30% of India’s GDP.
In northern India, Delhi and Haryana also stand out, with Delhi maintaining one of the highest per capita incomes. Haryana has surpassed Punjab in both GDP share and per capita income after the 2000s, while Punjab has experienced a decline.
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The eastern part of the country remains a concern, with West Bengal experiencing a steady decline in its relative economic performance over several decades. Bihar’s position has stabilized over the last two decades but continues to lag significantly behind other states. Odisha, traditionally an economic laggard, has shown notable improvement in recent years.
“Overall, maritime states have outperformed others, with the exception of West Bengal,” the report concludes.
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