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The two indicators used in this paper to capture relative economic performance are calculated as:

We will cover first indicator today:

In the 1960s, Uttar Pradesh (then undivided) was the largest economic powerhouse in the country, contributing 14.4 percent of India’s total GDP.

At the time of independence, the three presidency towns—Bombay, Calcutta, and Madras—were home to the largest industrial clusters in the country. (emerged as the leading economic powerhouses in the 1960s).

However, their economic trajectories have diverged significantly since that period.

 

The other two states that were among the top five economic powerhouses in the 1960s were Uttar Pradesh and Bihar. Their shares in India's GDP have declined over most of the period.

Following the Green Revolution, Haryana and Punjab states experienced a boom in agriculture, leading to increases in their shares. Punjab’s share rose to 4.4 percent and Haryana’s to 2.7 percent by 1970-71.

However, Punjab's share plateaued around 4.3-4.4 percent over the next two decades. In contrast, Haryana’s share continued to rise, although it has remained relatively stable since 2010-11. Haryana’s share in India’s GDP was 3.6 percent in 2023- 24.

If we see overall:

1. Maharashtra has maintained the highest share of India’s GDP for almost all of the period.
2. Overall, the southern states together account for 30.6 percent of India’s GDP in 2023-24.
3. Overall, the western and southern regions of the country are outperforming others, with notable success also observed in parts of the north.
4. An interesting overall observation is that the maritime states have clearly outperformed the other states, with the exception of West Bengal.
5. Even the coastal state of Odisha which was traditionally a laggard state has seen improved performance in the last two decades.
6. The eastern part of the country continues to be a concern.

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