In a significant economic milestone, Karnataka has emerged as the state with the highest per capita income in India for the financial year 2024–25. Data presented in the Lok Sabha by the Ministry of Finance revealed that the state’s Net State Domestic Product (NSDP) at constant prices surged to ₹2,04,605, a sharp rise from ₹1,05,697 in 2014–15—reflecting a 93.6% growth over the decade.

This makes Karnataka the only state to cross the ₹2 lakh thresholdunderscoring its rapid economic transformation and growth.

National Picture: Progress with Gaps

While India’s national per capita Net National Income (NNI) for 2024–25 stood at ₹1,14,710marking a 57.6% increase from ₹72,805 a decade ago, state-wise disparities remain prominent. Karnataka led the chartfollowed by Tamil Nadu with ₹1,96,309.

Other high performers include Odishawhich recorded the highest decade-long growth of 96.7%, and Mizoramwhich posted a staggering 125.4% growth for 2023–24 alone.

States Lagging Behind

Not all states shared in the prosperity. Punjab, Uttarakhandand Puducherry lagged with only 41.3%, 33.5%, and 32.8% growth, respectively, over the last decade—Puducherry being the lowest among all reporting regions.

Meanwhile, data for several states and union territories like Delhi, Goa, Gujarat, Kerala, and others were not availableindicating an incomplete national picture for 2024–25.

Factors Behind the Disparity

The Ministry attributed varying income levels to economic development levels, sectoral diversity, structural barriersand governance efficiency. However, the government reaffirmed its commitment to inclusive developmentciting initiatives such as ‘Sabka Saath, Sabka Vikas’aimed at reducing inequality and boosting social equity.

Final Thoughts

Karnataka’s performance signals a robust economic model driven by urbanization, digital innovation, and infrastructure growth. While the national trend shows upward mobility, ensuring balanced regional development remains a crucial challenge for India’s policymakers.