India’s top 10 states with highest per capita income
India’s economic growth over the last decade has been impressive, with rising GDP, digital innovation, and infrastructure development contributing to better living standards. However, economic prosperity is not uniform across the country. While some states have successfully built high-value industries, strong service sectors, and robust infrastructure, others are still struggling with agricultural dependence and slower industrial growth. One of the best indicators of a state’s economic health is per capita income (PCI), which measures the average income earned per person in a specific region during a financial year.
In the financial year 2023–24, several Indian states and union territories recorded impressive growth in per capita income, surpassing the national average of approximately ₹1.91 lakh. Here is a detailed look at India’s top 10 states and union territories with the highest per capita income, along with the factors contributing to their economic success.
1. Sikkim – A Small State with Big Numbers
Sikkim leads the per capita income rankings with a staggering ₹5.87 lakh per person. This small northeastern state, with its limited population, has benefited from hydropower projects, tourism, and a growing pharmaceutical industry. Sikkim’s focus on organic farming and sustainable tourism has not only strengthened its economy but also attracted domestic and international investments.
The state’s economic strategy highlights how smaller states can achieve high per capita incomes by leveraging natural resources, maintaining ecological balance, and promoting niche industries.
2. Goa – Tourism and IT Drive Growth
Goa continues to hold its position as one of India’s wealthiest states with a per capita income of ₹4.92 lakh. Renowned for its tourism industry, Goa also benefits from high remittances, a vibrant hospitality sector, and a growing presence of IT companies. Its infrastructure and higher literacy rate have helped create a strong workforce that supports tourism, manufacturing, and emerging tech industries.
3. Delhi – A Hub for Commerce and Services
The National Capital Territory of Delhi ranks third with ₹4.61 lakh per capita income. Delhi’s economy thrives on trade, real estate, financial services, and IT-enabled services. Being the political and commercial center of India, Delhi has access to advanced infrastructure, multinational companies, and global investors, all of which contribute to its high income levels.
4. Chandigarh – Planned Growth and Urban Economy
Chandigarh, known for its planned urban development, ranks fourth with a per capita income of ₹3.99 lakh. The city has benefited from its well-organized urban infrastructure, thriving IT services, and proximity to industrial hubs in Punjab and Haryana. The city’s administrative significance and focus on clean, green development have also played a role in its economic growth.
5. Telangana – IT and Agriculture Balance
Telangana, a relatively new state, has emerged as a top performer with ₹3.56 lakh per person. Hyderabad, the state capital, is a global IT hub, hosting tech giants like Microsoft, Google, and Amazon. Besides IT, Telangana’s investments in infrastructure, irrigation projects, and agriculture have helped boost both rural and urban economies.
6. Karnataka – The Silicon Valley of India
Karnataka stands at ₹3.32 lakh per capita, thanks to its thriving technology and startup ecosystem. Bengaluru, often called the “Silicon Valley of India,” is home to countless IT companies and research institutions. Additionally, Karnataka has strong industrial sectors, including aerospace, biotechnology, and manufacturing, contributing significantly to its high income levels.
7. Haryana – Industrial Powerhouse
Haryana ranks seventh with ₹3.25 lakh per capita income. The state’s proximity to Delhi NCR has spurred rapid industrialization, particularly in the automotive, manufacturing, and IT sectors. Gurugram, a major corporate hub, continues to attract multinational companies and startups, driving economic growth.
8. Tamil Nadu – Manufacturing and Services Hub
Tamil Nadu, with ₹3.15 lakh per person, is one of the most industrially diverse states in India. From automobile manufacturing in Chennai to textile production in Coimbatore and IT services in cities like Chennai and Madurai, Tamil Nadu’s economy is well-balanced. The state’s strong infrastructure, ports, and skilled workforce have made it a top choice for investors.
9. Gujarat – Entrepreneurial Spirit and Industry
Gujarat, with a per capita income of ₹2.72 lakh, remains a top industrial state. Known for its entrepreneurial spirit, Gujarat’s economy thrives on petrochemicals, textiles, diamond processing, and renewable energy. The state’s business-friendly policies and strategic ports have also made it a manufacturing and trade powerhouse.
10. Kerala – Service-Driven Economy
Kerala rounds off the list with ₹2.81 lakh per person. The state is renowned for its service-based economy, including healthcare, education, and tourism. High remittances from the Gulf region and a strong emphasis on social development have helped Kerala maintain a high quality of life and steady economic growth.
Key Takeaways
- Smaller states and union territories dominate the per capita income rankings due to better population-to-resource ratios and strong niche industries.
- IT and services sectors play a crucial role in states like Telangana, Karnataka, and Tamil Nadu.
- Tourism and remittances significantly boost the economies of states like Goa and Kerala.
The Road Ahead
While these states showcase impressive per capita incomes, India as a whole must focus on reducing economic disparities between regions. States with lower PCI, often reliant on agriculture, need better infrastructure, industrialization, and skill development to bridge the income gap.
With the government’s focus on digital India, infrastructure development, and Make-in-India initiatives, more states have the potential to improve their rankings in the coming years.
