Top 10 Richest and Poorest States in India by GDP, Income, and Poverty
India is a land of contrasts, and nowhere is this more evident than in its economic map. The topic of India’s richest and poorest states highlights the stark differences in prosperity across regions. Here, we'll explore the latest rankings, key statistics, and why some states lead or lag in economic growth. Understanding these differences is vital for exams and general knowledge.
Richest States in India by Per Capita Income
The richest states in India are determined by their per capita income, reflecting the average earning of an individual in a state. States like Telangana, Goa, and Delhi regularly top the charts, showcasing robust economic growth. These regions benefit from strong infrastructure, diversified industries, and better governance. Let’s look at the latest list of the top 10 richest state in India based on recent data.
Top 10 Richest States in India (2023-24)
| Rank | State / Union Territory | Per Capita Income (₹) |
|---|---|---|
| 1 | Goa | 3,57,611 |
| 2 | Sikkim | 2,92,339 |
| 3 | Delhi | 2,71,490 |
| 4 | Chandigarh | 2,56,912 |
| 5 | Puducherry | 1,45,921 |
| 6 | Karnataka | 1,91,000* |
| 7 | Tamil Nadu | 1,79,000* |
| 8 | Telangana | 1,77,000* |
| 9 | Maharashtra | 1,50,700* |
| 10 | Haryana | 1,48,000* |
(*Approximate values for 2023-24; see exact figures in government sources.) These states not only contribute greatly to India's total GDP but also offer better employment and quality of life. To know more about per capita income details, see our page Per Capita Income of Indian States.
Poorest States in India by Per Capita Income
India’s poorest states are mainly situated in the eastern and central regions. Factors like high population, lack of industries, and limited access to quality education and healthcare have contributed to their slower economic progress. The top 10 poorest state in India are highlighted below, along with their per capita income, which is significantly below the national average.
Top 10 Poorest States in India (2023-24)
| Rank | State | Per Capita Income (₹) |
|---|---|---|
| 1 | Bihar | 32,227 |
| 2 | Uttar Pradesh | 50,341 |
| 3 | Jharkhand | 65,062 |
| 4 | Madhya Pradesh | 72,036* |
| 5 | Chhattisgarh | 77,237* |
| 6 | Assam | 80,000* |
| 7 | Meghalaya | 82,500* |
| 8 | Manipur | 83,000* |
| 9 | Rajasthan | 88,000* |
| 10 | West Bengal | 96,000* |
(*Approximate figures). Bihar is consistently identified as the poorest state, followed by Uttar Pradesh and Jharkhand. For a deeper comparison with global rankings, visit Top 10 Poorest Countries of the World.
Why Do Economic Disparities Exist?
The gap between India’s richest and poorest states is influenced by several key factors. Differences in economic development, educational levels, industrialization, and administrative efficiency all play roles. Southern and western states benefit from industrial clusters, IT hubs, and better public services, while poorer eastern and central states struggle with high dependence on agriculture and slower infrastructure development.
Rich states have diverse industries and stronger job markets.
Poorest states in India have lower literacy rates and higher population growth.
Regional policy priorities and public investment vary widely.
Explore literacy rates across Indian states
Contribution of Top States to India’s GDP
While per capita income gives a snapshot of prosperity, states’ total contribution to India’s GDP also matters. Maharashtra remains the largest contributor, but southern states like Karnataka, Tamil Nadu, Telangana, Kerala, and Andhra Pradesh now account for around 30% of India’s GDP, reflecting the trend of "India’s richest and poorest states South leads GDP race".
Maharashtra: ~13% of India’s GDP
Southern states together: ~30%
Uttar Pradesh and Bihar contribute less despite large populations
Read about India vs Pakistan's economic comparison
Interesting Facts: India’s Richest and Poorest States Revealed
* According to recent data, Goa and Sikkim often lead among the richest, while Bihar stays at the bottom.
* Urbanization and IT have boosted prosperity in southern states.
* Forbes and Wikipedia lists differ slightly, but patterns are clear across all sources.
* Targeted policies are critical to bridge these regional gaps (Sabka Saath, Sabka Vikas principle).
Learn how states have evolved since 1947
How Can States Reduce Economic Disparities?
Efforts are ongoing to address the differences between the richest and poorest states of India. Steps include investing in quality education, health infrastructure, promoting small industries, improving road and rail connectivity, and adopting technology in governance. Reducing these disparities is essential for balanced national progress and prosperity.
Explore major railways zones that support state development
Page Summary: India’s Richest and Poorest States
India’s richest and poorest states reflect diverse regional growth patterns. Goa, Sikkim, and Delhi show high per capita incomes, while Bihar and Uttar Pradesh continue to face challenges. Southern states now significantly drive India’s GDP. Understanding these differences is crucial not only for general knowledge but also to appreciate policy efforts for inclusive and sustainable development. Vedantu helps learners stay updated with such key facts and rankings.
FAQs on India's Richest and Poorest States: Statewise GDP & Income
1. Which is the richest state in India?
Maharashtra is the richest state in India by total Gross State Domestic Product (GSDP).
Key points:
- Maharashtra leads in GDP with over ₹35 lakh crore.
- Main industries: Finance, Manufacturing, Services, Films.
- This state is also India’s commercial capital, with Mumbai as the financial hub.
2. Which state has the highest per capita income in India?
Goa has the highest per capita income in India according to government reports for 2023–24.
Details:
- Per capita income (Goa): Over ₹5,10,000
- High income due to tourism, mining, and industrialization
- Low population increases average income per person
3. Which states are included in the top 10 richest states of India?
The top 10 richest states of India by GSDP include:
- Maharashtra
- Tamil Nadu
- Uttar Pradesh
- Gujarat
- Karnataka
- West Bengal
- Rajasthan
- Andhra Pradesh
- Madhya Pradesh
- Telangana
- These states lead in sectoral diversity and industrialization.
4. Which state is poorest in India?
Bihar is currently considered the poorest state in India by per capita income and poverty rate.
Key facts:
- Per capita income in Bihar is the lowest (₹43,000 in 2023–24).
- Highest multidimensional poverty index (over 33% population below poverty line).
- Factors: High population, less industrialization, and agrarian dependency.
5. Why is Bihar considered the poorest state in India?
Bihar is considered the poorest state mainly due to its low per capita income and high poverty rate.
Main reasons:
- Lack of industrial growth and fewer employment opportunities
- High population density reduces average income per person
- Poor infrastructure and historic underinvestment
- Heavy dependence on agriculture with low productivity
6. What is the difference between richest state by GDP and by per capita income?
The richest state by GDP has the largest overall economic output, while by per capita income, it has the highest average income per person.
Summary:
- GDP (GSDP): Total economic production; Maharashtra leads.
- Per capita income: Divides state GDP by population; Goa leads.
- Smaller states with fewer people can have high per capita even if total GDP is smaller.
7. Which states have the highest poverty rates in India?
The states with the highest poverty rates based on NITI Aayog’s Multidimensional Poverty Index are:
- Bihar: 33.8%
- Jharkhand: 28.9%
- Uttar Pradesh: 22.9%
- Madhya Pradesh: 20.6%
- Assam: 18.3%
- Key reason: Underdevelopment, poor access to education and health, and fewer jobs.
8. What are the key factors causing economic disparity among Indian states?
Economic disparity among Indian states arises due to several interconnected factors.
Major factors:
- Geography: Coastal access, natural resources
- History: Colonial legacy, early industrialization
- Government policies: Investment in education, infrastructure
- Demographics: Population growth and poverty cycle
- Sectoral focus: Industry/service sector vs. agriculture dependency
9. How is poverty measured in Indian states?
Poverty in Indian states is measured using indicators like the Poverty Rate, BPL (Below Poverty Line) percentage, and the Multidimensional Poverty Index (MPI).
Criteria include:
- Percent of population below the predefined poverty line
- Access to health, education, and living standards (MPI method)
- Official data from NITI Aayog, Economic Survey, NCERT, and other government sources
10. How are these rankings important for competitive exams?
State rankings by GDP, per capita income, and poverty are frequently asked in competitive exams like UPSC, CBSE, SSC, and State PSCs.
Relevance includes:
- Direct GK questions: "Name the richest state," "List states by poverty"
- Essay/analysis about economic disparity in India
- Understanding regional growth and development policies
11. Which state has the lowest per capita income in India?
Bihar has the lowest per capita income among all Indian states.
Key figures:
- Per capita income is only ₹43,000 (2023-24)
- Consistently lower than the national average due to high population and low industries
12. What is meant by Gross State Domestic Product (GSDP)?
Gross State Domestic Product (GSDP) is the total value of goods and services produced within a state during a financial year.
Main points:
- Measures the economic output of a state
- Used for ranking the richest states
- Published by government agencies like MoSPI and RBI
