India’s Top 10 States with Highest Per Capita Income

Summary

As per a recent Lok Sabha report by Finance Minister Pankaj Chaudhary, India’s per capita net national income for FY 2024–25 stands at ₹1,14,710—a sharp rise from ₹72,805 in 2014–15 . The top 10 states and UTs with the highest per capita income this year are:

Karnataka – ₹2,04,605
Tamil Nadu – ₹1,96,309
Haryana – ₹1,94,285
Telangana – ₹1,87,912
Maharashtra – ₹1,76,678
Himachal Pradesh – ₹1,63,465
Uttarakhand – ₹1,58,819
Puducherry – ₹1,55,533
Andhra Pradesh – ₹1,41,609
Punjab – ₹1,35,356

1. Introduction: Why Per Capita Income Matters

Ever wondered what your neighbour’s income works out to per person? That’s essentially what per capita income measures—total income divided by the population. It’s a handy snapshot of economic wellbeing, standard of living, and overall prosperity of a region. Think of it like measuring the average water level in a reservoir—higher means more resources are available per person. In this context, India’s average per capita income for FY 2024–25 is ₹1,14,710, up by ₹41,905 from ₹72,805 in FY 2014–15

But averages can hide extremes. Some states, like Karnataka, Tamil Nadu, and Haryana, significantly outperform the national average—indicating stronger economies and better living standards. In contrast, others lag behind, underlining the regional imbalance and policy challenges. Let’s deep dive into the top 10 states and UTs that are leading the economic charts this year.

2. Methodology: How the Rankings Are Made

Per capita income here is based on Net State Domestic Product (NSDP) at constant prices, offering a standardized view across states and UTs. The Ministry of Statistics & Programme Implementation (MoSPI) tracks this data, adjusting for inflation so that the yearly comparisons remain fair. The figures published in Parliament, including the ₹2 Lakh+ numbers for top states, are based on FY 2024–25 estimates

3. Karnataka – Topping the Charts with ₹2,04,605

Karnataka leads the pack with a per capita NSDP of ₹2,04,605. What fuels this?

3.1 Bengaluru Effect

Home to India’s Silicon Valley, Bengaluru attracts high-paying jobs in IT, tech, biotech, and aerospace. Startups with unicorn valuations also pay competitive salaries.

3.2 Diversified Growth

Manufacturing hubs in Mysuru and Mangaluru
Agricultural strength with coffee, silk, sugarcane
Service economy boom in education, healthcare, tourism

Added up, these factors have catapulted Karnataka to the top spot.

4. Tamil Nadu – A Close Second at ₹1,96,309

With a rich industrial base, Tamil Nadu clocks a per capita income of ₹1,96,309.

4.1 The Manufacturing Powerhouse

Home to Chennai, Coimbatore, and Tiruppur, the state houses automobile giants, electronics parks, and textiles.

4.2 IT and Services

Chennai is a key IT city, alongside growing BPO and healthcare sectors.

4.3 Extensive Infrastructure

Ports, transport networks, and reliable power have nurtured both urban and rural economies.

5. Haryana – ₹1,94,285 Fueled by Industrial Boom

Right next to Delhi, Haryana benefits from spillover growth.

5.1 Delhi NCR Ripple Effect

Industries, warehouses, and IT campuses in Gurugram, Faridabad, and Panchkula generate high incomes.

5.2 Farming with a Twist

High-value crops, along with cold storage and dairy, boost farmer earnings.

5.3 Industrial Clusters

Automotive, plastics, and FMCG factories add value and employment to the economy.

6. Telangana – Tech-Led Progress at ₹1,87,912

India’s youngest state, Telangana, registers ₹1,87,912 per capita.

6.1 Hyderabad’s Tech Magnetism

With IT giants, pharma majors, and R&D centers, Hyderabad is a financial engine.

6.2 Emerging Industries

Biotech, aerospace, and startups are growing fast in and around the city.

6.3 Urban-Rural Synergy

Urban prosperity feeds rural prosperity through remittances and agricultural linkages.

7. Maharashtra – ₹1,76,678 Despite Large Population

Even with its big population, Maharashtra performs well at ₹1,76,678.

7.1 Mumbai: The Financial Heart

From Bollywood to finance to fintech, Mumbai fuels high-income jobs.

7.2 Industrial Diversity

Pune leads in automotive and academia; Nashik and Aurangabad fuel manufacturing and tourism; Nagpur drives logistics.

7.3 Challenges

The state’s wealth distribution remains skewed, with urban–rural income gaps and slum clusters.

8. Himachal Pradesh – Mountain Economy at ₹1,63,465

The hill state of Himachal scores ₹1,63,465 per capita.

8.1 Horticulture to Holidays

Apple orchards, hydropower, and tourism anchor its economy.

8.2 Small Population, Big Impact

Fewer residents mean higher per-person income when tourism and agriculture flourish together.

9. Uttarakhand – ₹1,58,819 Riding on Tourism

Uttarakhand’s per capita income is ₹1,58,819.

9.1 Pilgrimage and Peaks

Char Dham yatra, hill stations, and adventure tourism drive economic activity.

9.2 Hydropower Revenue

Several large dams send electricity to national grids, boosting state revenue.

10. Puducherry – ₹1,55,533 from Mixed Economy

This Union Territory, at ₹1,55,533 per capita, punches above its weight.

10.1 Tourism and Heritage

French colonial heritage draws international tourists.

10.2 Manufacturing Footprint

Textiles, confectionery, and fishing complement services to raise incomes.

11. Andhra Pradesh – ₹1,41,609 Laying Foundations

AP lands ₹1,41,609 per individual.

11.1 Agro and Aquatic Output

Rice, shrimp, and industrial clusters on the eastern coast expand income.

11.2 Urban Growth

Capital region Amaravati and IT hubs in Visakhapatnam add value and opportunities.

12. Punjab – ₹1,35,356 from Farming Prosperity

Punjab rounds out the top 10 with ₹1,35,356 per capita.

12.1 Green Revolution Legacy

High-yield crops, micro-irrigation, and processing units sustain income.

12.2 Overseas Remittances

Dairy and diaspora inflows also keep earnings elevated.

Conclusion: The Road Ahead

India’s per capita income has grown impressively in the past decade—now averaging ₹1,14,710. Yet, the chasm between rich and poor states remains. Karnataka, Tamil Nadu, and Haryana showcase India’s growth potential, while states like Bihar, Jharkhand, and UP highlight unfinished work. With targeted policies, infrastructure, education, and inclusive growth, the country can ensure that prosperity permeates every district, every household. This isn’t just economics—it’s the future of millions of dreams.

FAQs

What defines per capita income and why is it important?
Per capita income is the average income per person in a region—total net income divided by population. It shows residents’ economic wellbeing and helps compare regional prosperity.
Why do southern states outperform northern states?
Southern states like Karnataka and Tamil Nadu lead thanks to strong urban economies, industrial bases, better infrastructure, and higher human development indices.
How much did India’s average per capita income increase in a decade?
From ₹72,805 in FY 2014–15 to ₹1,14,710 in FY 2024–25—an increase of ₹41,905 or around 57.5% .
Which state tops India in per capita income?
Karnataka leads with ₹2,04,605 for FY 2024–25.
What policy steps can reduce state income disparities?
Improving infrastructure, education, skill training, and offering incentives for industries in lagging regions can help balance economic growth.