GDP per Capita of Indian States (2025): State-Wise Ranking, Highest & Lowest States

When we think about India’s economy, most of us imagine big numbers — trillion-dollar figures, massive IT exports, and a rapidly growing middle class. But when you break the economy down state by state, the story looks very different. Some states enjoy prosperity levels similar to middle-income countries, while others still struggle to raise incomes.

The best way to understand this difference is by looking at GDP per capita of Indian states in 2025. This figure divides the state’s economic output by its population, showing us how much income is generated per person. In this blog, we’ll look at the state-wise GDP per capita rankings, identify the richest and poorest states, and discuss why these differences matter.

Understanding GDP Per Capita in Simple Words

Before diving into the numbers, let’s break it down.

• GDP (Gross Domestic Product) is the total value of goods and services produced in a region.

• GDP per capita = GDP ÷ Population.

So, a higher GDP per capita usually means that people living in that state have more income opportunities, better infrastructure, and often a higher quality of life. A lower GDP per capita signals either a large population or weaker economic output.

In India, economists often calculate this at the state level using Net State Domestic Product (NSDP) per capita. It’s basically the same concept but adjusted for state-wise calculations.

India’s Average GDP Per Capita in 2025

At the national level, India’s GDP per capita in 2025 is projected to be around ₹2.15 lakh (approx. $2,600). That’s an impressive jump compared to a decade ago, but India is still catching up with countries like China or Brazil.

The national average hides the fact that some states are far ahead of the curve. For instance, smaller regions like Sikkim, Goa, and Delhi have GDP per capita levels three to four times higher than the Indian average. On the flip side, states like Bihar and Uttar Pradesh continue to lag, despite contributing massively in terms of population and workforce.

State-Wise GDP Per Capita Rankings (2025)

Here’s a simplified look at the GDP per capita of Indian states and UTs in 2025. The numbers are rounded estimates compiled from MOSPI, RBI, and state economic survey data.

(Note: Estimates are rounded; actual figures vary by source.)

Top 5 States by GDP Per Capita in 2025

1. Sikkim

Sikkim is the surprise champion of India’s GDP per capita rankings. Its population is small, but its economy is powered by hydropower exports and a booming eco-tourism sector. Add to this its pioneering role in organic farming, and you have a model that shows how even small states can thrive.

2. Goa

With its scenic beaches and strong tourism industry, Goa has long been associated with prosperity. Mining and services also contribute heavily, giving it one of the highest per capita incomes in India.

3. Delhi (Union Territory)

Delhi isn’t just the political capital of India — it’s also an economic powerhouse. Trade, IT services, education, and administration make Delhi one of the richest regions in terms of GDP per capita.

4. Chandigarh (UT)

Known as one of India’s most planned cities, Chandigarh combines government services with education and IT industries. Its smaller population helps keep per capita figures high.

5. Telangana

The youngest state in India has quickly become an IT and pharmaceutical hub. Hyderabad alone contributes significantly, with its world-class infrastructure attracting global businesses.

Bottom 5 States by GDP Per Capita in 2025

While India has made progress, some states remain far behind:

• Bihar → Lowest GDP per capita due to its high population and underdeveloped industrial sector.

• Uttar Pradesh → Despite having one of the largest state economies, its huge population pulls the per capita figure down.

• Jharkhand → Rich in minerals but still struggling with infrastructure and poverty.

• Odisha → Mining brings revenue, but rural development is limited.

• Chhattisgarh → Industrial output is strong, yet per capita figures stay modest because of rural poverty.

Key Insights from GDP Per Capita Rankings

• Smaller states shine → States and UTs with low populations (Goa, Sikkim, Chandigarh) naturally score better.

• Southern states are leading → Karnataka, Telangana, Tamil Nadu, and Kerala consistently beat the national average.

• Industrialization is critical → Manufacturing hubs and IT corridors push states ahead.

• Agriculture alone cannot sustain growth → States relying primarily on farming see lower per capita income.

• Remittances matter → States like Kerala and Punjab benefit enormously from money sent by overseas workers.

GDP Per Capita vs Human Development

It’s worth noting that GDP per capita is not the only measure of well-being. For example:

• Kerala has a moderate GDP per capita but excels in literacy, healthcare, and social indicators.

• On the other hand, states like Haryana and Telangana are wealthy on paper but face challenges like inequality and unemployment.

So, while GDP per capita helps measure economic prosperity, it should always be considered alongside Human Development Index (HDI), education, healthcare, and quality of life.

Why GDP Per Capita Rankings Are Important

• Policy Makers → Governments use this data to design welfare schemes and target weaker states.

• Investors & Businesses → Companies assess market potential based on income levels.

• Citizens → It helps people understand how their state compares economically with others.

In conclusion, India’s economic map is a mosaic of contrasts. On one hand, you have states like Sikkim, Goa, and Delhi leading the way with GDP per capita levels similar to small European countries. On the other, states like Bihar and Uttar Pradesh still face hurdles that hold back their progress.

The GDP per capita of Indian states in 2025 shows us both the strengths and challenges of India’s growth story. If India wants to achieve inclusive development, bridging this gap between richer and poorer states is essential.

As India pushes toward its goal of becoming a $5 trillion economy, the real success will not just be about reaching the number — it will be about ensuring that every citizen, no matter which state they belong to, enjoys the benefits of prosperity.