Five Indian states now have per capita incomes above the World Bank’s upper-middle-income threshold. Notably, Delhi leads the list with a per capita income of $6,217. Moreover, Maharashtra, Haryana and Kerala narrowly missed the mark. Clearly, the data shows wide gaps among India’s states.
World Bank Income Groups
The World Bank classifies countries by per capita income:
- Low income: Below $1,175
- Lower-middle income: $1,175 to $4,635
- Upper-middle income: $4,636 to $14,375
- High income: Above $14,375
States Above the Upper-Middle-Income Line
- Delhi: $6,217
- Karnataka: $5,579
- Telangana: $5,407
- Tamil Nadu: $5,329
- Gujarat: $4,734
States That Narrowly Missed
- Maharashtra: $4,628, just $8 short
- Haryana: $4,627, short by $9
- Kerala: $4,610, about $26 below
The Other End of the Scale
However, some states remain far behind. For example, Bihar’s per capita income is only about $984. So, it would fall in the low-income group, far from the upper-middle-income line. Similarly, Uttar Pradesh and Jharkhand stay in the lower-middle group. Meanwhile, India as a whole remains a lower-middle-income economy.
How the Analysis Was Done
Analysts took each state’s per capita Net State Domestic Product (NSDP). Then, they converted it into US dollars using the World Bank’s Atlas method. Thus, states could be compared with World Bank income groups.
Why Regional Gaps Matter
Large income gaps affect jobs, migration and public services. For instance, workers move from poorer states to richer ones. Also, the Finance Commission uses income data to share taxes among states. Therefore, reducing regional gaps is key to Viksit Bharat 2047.
Why This Matters for UPSC and UKPSC
Notably, income data and World Bank classifications are useful for economy questions. So, remember the thresholds and the five states. Also, prepare points on regional inequality. For official data, also visit the World Bank. Next, for a related story, read about India’s national accounts base year revision.
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