Fortunes of Indian states have varied widely since Independence. In our recent paper ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’, we analysed their trajectories based on two key economic indicators: (i) state’s share in India’s GDP and (ii) state per capita income as a percentage of national average.
Several interesting trends emerged. In the 1960s, undivided UP, Maharashtra, West Bengal, Tamil Nadu and undivided Bihar were the top five states in terms of share in India’s GDP. The three colonial-era presidency towns – Bombay, Calcutta, and Madras – were home to the largest industrial clusters. UP and Bihar were agricultural powerhouses. Their economic trajectories have since diverged.

Share of undivided UP in national GDP declined from 14.4% in 1960-61 to 9.3% in 2020-21, before increasing marginally to 9.5% (8.4% excluding Uttarakhand). Maharashtra’s economic performance has remained steady. Its share rose marginally from 12.5% in 1960-61 to 13.3% in 2023-24. In contrast, West Bengal has continuously declined from 10.5% in 1960-61 to 5.6% today. This marks the largest decline in share of any state.

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