TNPSC Thervupettagam

Indian states growth after 1991 Part – 02

October 1 , 2024 14 days 194 0

Indian states growth after 1991 Part – 02

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

Economic Performance of Southern States

Karnataka

  • Initial Share: Karnataka’s share in India’s GDP was 5.4% in 1960-61, remaining stable until 1990-91.
  • Post-Liberalization Growth: Following the liberalization, Karnataka experienced rapid growth:
  • 2000-01: GDP share increased to 6.2%.
  • 2023-24: Rose further to 8.2%, positioning Karnataka as the third-largest contributor to India’s GDP.

Undivided Andhra Pradesh

  • Current Share: As of 2023-24, undivided Andhra Pradesh (including Telangana) accounts for 9.7% of India’s GDP.
  • Growth since 1990-91:
  • This represents an increase of 2.1 percentage points since 1990-91.
  • This growth is largely attributed to the economic performance of Telangana.
  • Post-Bifurcation Stability:
  • Since the bifurcation, the share of Andhra Pradesh has remained broadly flat.

Tamil Nadu

  • Recovery from Decline: Tamil Nadu reversed its pre-1991 decline by increasing its GDP share.
  • 1990 - 91: 7.1%
  • 2023 - 24: 8.9%, reflecting successful industrial and economic policies.

Kerala

  • Initial Growth and Recent Decline: Kerala’s share increased from 3.4% in 1960-61 to a peak of 4.1% in 2000-01.
  • Current Share: By 2023-24, it has drifted down to 3.8%, making it the only southern state experiencing a decline in its GDP share.

Economic Growth and Relative Per Capita Income in India

Economic Growth of Gujarat and Delhi

Gujarat

  • Historical Share: Gujarat's share in India’s GDP was 5.8% in 1960-61, increasing to 6.7% by 1970-71.
  • Stagnation and Growth: After remaining relatively flat until 2000-01, Gujarat's economic share began to rise rapidly, reaching 8.1% by 2022-23.
  • Context: Notably, Gujarat and Maharashtra were part of the same Bombay state until 1960.
  • While Maharashtra has maintained its economic share, Gujarat experienced stagnation before its significant growth in the last two decades.

Delhi

  • Impressive Growth: Despite its smaller size, Delhi has seen a remarkable increase in its economic share, rising from 1.4% of India’s GDP in 1960-61 to 3.6% in 2023.
  • This makes its economic output comparable to larger states like Haryana and Kerala, highlighting its rapid urban and economic development.

Relative Per Capita Income

  • Relative per capita income is a crucial indicator for assessing the economic well-being of individuals within a state compared to the national average.

Per Capita Income in 1960-61

  • Delhi: The wealthiest among large states, with a per capita income more than double the national average.
  • Maharashtra: Ranked second, with a relative per capita income of 133.7% of the national average.
  • West Bengal:
  • West Bengal held the third-highest relative per capita income at 127.5%.
  • This is higher than states like Gujarat, Karnataka, Tamil Nadu, and Kerala.
  • Punjab: Fourth, with a relative per capita income of 119.6%.
  • Gujarat: Fifth, with a relative per capita income of 118.3%.

Lowest Relative Per Capita Incomes

  • Bihar and Odisha: Both states had the lowest relative per capita incomes, approximately 70-71% of the national average, reflecting significant economic challenges.

Comparative Analysis of Per Capita Income: Maharashtra and Gujarat

  • Maharashtra and Gujarat have exhibited strong economic performance over the decades, maintaining per capita incomes above the national average since the 1960s.
  • However, their trajectories have diverged significantly, particularly in recent years.

Historical Per Capita Income Performance

1960-61

  • Maharashtra: Held a relative per capita income of 133.7% of the national average, positioning it as one of the wealthiest states.
  • Gujarat: Lagged behind with a relative per capita income of 118.3%, indicating a substantial economic gap between the two states.

1970s to 2000-01

  • Gujarat's Decline: During the 1970s, Gujarat’s relative per capita income declined and remained relatively flat until 2000-01, hovering just above the national average at around 100%. This stagnation highlighted challenges in economic growth during this period.

Post-2000-01 Surge

  • Gujarat's Resurgence: Starting from 2000-01, Gujarat experienced a remarkable surge in its relative per capita income, driven by robust economic policies and growth strategies.
  • Current Standings as per the latest data:
  • Gujarat: Relative per capita income stands at 160.7% of the national average.
  • Maharashtra: Relative per capita income at 150.7% of the national average.

Economic Performance and Per Capita Income: Delhi, West Bengal, and Odisha

  • The economic trajectories of Delhi, West Bengal, and Odisha highlight significant contrasts in per capita income and overall economic health, particularly in recent decades.

Per Capita Income Trends

Delhi

  • Historical Context: Delhi had the highest per capita income among Indian states in the 1960s.
  • Recent Growth: Despite some fluctuations, Delhi's per capita income has steadily increased over the years.
  • Current Status: As of 2023-24, Delhi's relative per capita income stands at 250.8% of the national average, meaning the average income in Delhi is 2.5 times that of the average Indian.
  • However, it has now been surpassed by Sikkim and Goa.

West Bengal

  • Initial Success: West Bengal once ranked third in per capita income in 1960-61, with income 27% above the national average.
  • Decline: By 1980-81, the state’s per capita income fell below the national average, indicating significant economic challenges.
  • 1990-91 Data: West Bengal’s per capita income was at 82.4% of the national average, showing a further decline after a brief recovery in the following decade.
  • Current Standing: As of 2023-24, West Bengal’s relative per capita income is 83.7% of the national average, even lower than in 1960-61, reflecting the ongoing economic struggles of the state.

Odisha

  • Historical Context: Traditionally viewed as a laggard state, Odisha has made remarkable progress since the 2000s.
  • Significant Improvement: Odisha’s relative per capita income increased from 55.8% in 2000-01 to 88.5% in 2023-24.
  • Although still below the national average, this growth represents substantial improvement over two decades.
  • Comparison with West Bengal: West Bengal’s per capita income is now lower than that of Odisha.

Economic Performance and Per Capita Income: Assam, Punjab, and Haryana

  • The economic trajectories of Assam, Punjab, and Haryana reflect varying outcomes influenced by historical policies and regional developments, particularly in terms of per capita income.

Per Capita Income Trends

Assam

  • 1960-61 Context: In 1960-61, Assam's per capita income was slightly above the national average, at 103%.
  • Decline: Over the following decades, Assam's relative per capita income steadily declined, reaching a low of 61.2% by 2010-11.
  • Recent Recovery: Since then, Assam has experienced a resurgence, with its relative per capita income rising to 73.7% in 2023-24, indicating a positive turnaround in economic performance.

Punjab

  • Initial Growth: Following the Green Revolution in the 1960s, Punjab saw a rapid increase in per capita income, rising from 119.6% of the national average in 1960-61 to 169% in 1970-71.
  • Divergence from Haryana: However, Punjab's economic trajectory began to diverge significantly from Haryana’s after this period.
  • By 1980-81, Punjab's relative per capita income had declined to 146.1% and remained relatively stable until 2000-01.
  • Recent Decline: Post-2001, Punjab’s per capita income began to decrease again, reaching only 106.7% of the national average in 2023-24, lower than its level in 1960-61.
  • This stagnation reflects a lack of significant economic push or growth in GSDP beyond the initial gains from the Green Revolution.

Haryana

  • Strong Performance: Like Punjab, Haryana also benefited from the Green Revolution, with a relative per capita income of 106.9% in 1960-61, rising to 138.5% by 1970-71.
  • Post-Liberalization Growth: After 1990-91, Haryana's relative per capita income began to rise rapidly, reflecting successful economic policies and development strategies.
  • Current Standing: By 2023-24, Haryana's relative per capita income reached 176.8%, positioning it as the fourth-highest among major states, following Delhi, Telangana, and Karnataka.

Key Economic Developments and Trends in Southern India

  • Southern states have shown varied economic performances.
  • Karnataka has risen from 5.4% of India's GDP in 1960-61 to 8.2% in 2023-24, thriving post-liberalization.
  • Undivided Andhra Pradesh stands at 9.7%, benefiting from Telangana's growth.
  • Tamil Nadu recovered to 8.9%, while Kerala declined to 3.8%.
  • These dynamics reflect distinct regional strengths and challenges in the South's economic landscape.

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