Relative Economic Performance of Indian States

Most papers regarding economic performance of states deal with the real and nominal growth rates
of states over time. In this paper, we have focused exclusively on the relative performance of states,
measured using two indicators- (1) Share in India’s GDP and (2) Relative per capita income.The state’s share in India’s GDP is calculated by dividing the Gross State Domestic Product
(GSDP) of the state by the sum of GSDP of all states. Relative per capita income is calculated
as the ratio of the per capita Net State Domestic Product (NSDP) of the state as a percentage
of the all-India per capita Net National Product (or Net National Income in some years). An
important point to remember here is that per capita NSDP means that it does not include
remittances which may be important for states like Kerala, Bihar and Uttar Pradesh. We have
made adjustments where possible for state bifurcations and other factors to ensure comparability.
All data used are in current prices. The analysis spans a long period, from 1960-61 to 2023
24, providing insights into how individual states have performed in response to changes in national
and state-specific policies.