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Per capita income rises at highest pace in mineral rich states of Jharkhand andOrissa, says AEP

Jharkhand and Orissa are growing at the fastest pace in terms of their per capitaincome, thanks to pick up in industrial activity in the two mineral rich states while

Karnataka, Gujarat and Tamil Nadu have maintained leads among other states, anAssocham Eco Study has revealed.

Jharkhand, with per capita income of Rs.14,990, has registered 16.6 per cent growth.With huge mineral and other natural resources, the state has been receivinginvestment proposals in steel, cement and power sectors, giving the necessary push toits economy providing employment opportunities.

With influx of huge capex by the large industrial houses in the core infrastructuresector, Orissa is witnessing rapid rise of 11.5 per cent in income distribution (Rs.14,795).

Per capita income reflects on the purchasing power and standard of living of the people of each state. For inclusive growth, it is necessary for the states to put inefforts to raise the income attributable to each person, said Mr. Venugopal N Dhoot,President, Assocham.

Buoyed by huge investment flow, rising employment opportunities, the increasingfoothold of service-based sectors, the southern states of Karnataka and Tamil Naduand industrialized Gujarat rank among the top states with per capita income more thanthe all India average of Rs. 20,734 (in FY06).

Karnataka tops the chart of the well-to-do states with fastest growing income per person by 9.28 per cent at Rs. 21829 for the financial year 2006. Gujarats averageincome per person rose to Rs. 26,543 with growth of 8.92 per cent. Per capita incomein Tamil Nadu was recorded at Rs. 24,308 with rise of 8.46 per cent. Noticeably, these

best performing states are among the ten most populous Indian states with more than54 million population each.

However, Delhi and Goa, relatively smaller states, have highest per capita income atRs. 49172 and Rs. 47507 but the rate of growth is relatively lower at 6.9 per cent and6 per cent.

The state of Chhattisgarh struggling at political, social and economic front, witnessed8.8 per cent growth, though average income base remains very low at Rs.16,365.

The development plans in the states of Madhya Pradesh, Uttar Pradesh and Bihar areyet to take off as they remain at the bottom of the pyramid with lowest per capitaincomes of Rs. 12566, Rs. 10637 and Rs. 6610 growing at the slowest rates of 2.9 per cent, 3.1 per cent and 3.7 per cent respectively.

The concern was expressed in the Study at the fact that the per capita income inseventeen states was growing below the national average of 8.4 per cent. The per

capita income for the Indian economy grew to Rs. 22,483 in FY07 from Rs. 20,734 inFY06.

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Maharashtra, with largest state domestic product and major recipient of foreign aswell as domestic investment, has witnessed a healthy growth rate of 7.3 per cent in its

per capita income (29,085). Another state to record above 7 per cent growth wasUttaranchal, though the income base was low at Rs.20, 328 per person in fiscal 06.

Haryana, with prosperous farm sector and booming IT, real estates, engineering andconstruction activities, has the third largest per capita income of Rs. 29,887 , growingat 6.5 per cent.

West Bengal, despite fourth largest population, has managed to raise its per capitaincome at the rate of 6 per cent, owing to massive investment plans in sectors likesteel, real estate, power, retail and IT. The average income per person was recorded atRs. 20,485 in the fiscal 2005-2006.

There were states where the effect of overall economic boom was not reflected intheir per capita income. While the state domestic product of Kerela and AndhraPradesh grew by 8.8 per cent and 7 per cent respectively, the average incomeavailable to each person grew by 5.9 per cent each.

The per capita income in scarcely populated Himachal Pradesh rose at the moderategrowth rate of 5.34 per cent. As the state remains pre-dominantly dependent ontourism sector, the level of industrial investment remains low. The per capita incomewas recorded at Rs.27,162 in fiscal 06. Growth in the prosperous state of Punjab seems to have stalled as rise in per capitawas estimated to be mere 2.9 per cent, even though it has fifth largest per capitaincome of Rs.28,605.