The Indian economy has demonstrated resilience in the wake of the COVID-19 pandemic, with the average real GDP growth surging to 8.1 per cent, a substantial increase from the 5.7 per cent growth witnessed in the pre-pandemic period.
According to the latest findings from the State Bank of India (SBI) Research, out of the 235 basis point (bp) growth, Maharashtra and Uttar Pradesh emerged as frontrunners, contributing 56 and 40 bps respectively, while the remaining 90 bps stemmed from other states.
On the Gross State Domestic Product (GSDP) front, Gujarat has notably doubled its economic output, marking a 2.2 times increase over the last decade.
Following closely behind are states such as Karnataka, Assam, Andhra Pradesh, Odisha, Telangana, Sikkim, and Madhya Pradesh, showcasing significant economic momentum and development.
The report also underscores the rise in per capita income across several states, with Gujarat exhibiting the most substantial growth, increasing by 1.9 times.
Karnataka, Andhra Pradesh, Telangana, and Assam trail closely, reflecting commendable economic advancements. Moreover, Gujarat, Karnataka, and Telangana have outperformed other states in terms of per capita income, further cementing their positions as economic powerhouses.
While some states such as Uttar Pradesh, Chhattisgarh, Bihar, and Madhya Pradesh have maintained stable per capita income growth trajectories, others like Jharkhand, Rajasthan, West Bengal, Maharashtra, Punjab, Delhi, and Goa have experienced deceleration in this aspect.
Furthermore, the report highlights a significant reduction in state-wide inequality in terms of per capita net state domestic product (NSDP) following the COVID-19 pandemic.
From FY19 to FY22, per capita NSDP inequality decreased from 0.523 to 0.480, indicating a positive trend towards greater economic inclusivity and equality across states.
Commenting on the findings, the SBI Research team emphasised the importance of continued policy support and targeted interventions to sustain and enhance economic growth momentum across all states.
They also stressed the need for collaborative efforts between the central and state governments to address regional disparities and foster inclusive growth strategies.
The SBI Research report serves as a resource for policymakers, economists, and stakeholders, providing insights into the evolving dynamics of the Indian economy and guiding future development initiatives.
