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Is South India really richer than the North? Three charts that show the truth

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The southern states do well in terms of Net State Domestic Product. But what happens when one studies per capita income and inequalities?

New Delhi: The Kerala floods have once again ignited the debate on how well-off south Indian states are vis-a-vis their north Indian counterparts and how the south is perhaps better equipped financially to cope with an emergency.

There has been talk comparing the economy of a ‘united South India’ to that of Hong Kong. But are these states collectively really that rich?

The last time such a comparison was possible was in 2014-15, when the government had released comprehensive data for all states and union territories.


Also read: Per capita income, human development rankings puncture holes in India’s GDP rise story


Net State Domestic Product

In terms of Net State Domestic Product (NSDP) — the monetary value of all goods and services produced in the state during a financial year — all five southern states featured in the top 10. Tamil Nadu was second, Karnataka was fourth, while Kerala, Telangana and Andhra Pradesh bagged the eighth, ninth and tenth positions respectively.

Per capita income

In terms of production of goods and services, the southern states do really well. But once per capita income is included in the study, the picture changes.

In terms of state-wise per capita income, only two southern states appeared in the top 10, and none in the top five. Kerala came in eighth, Karnataka 10th, Tamil Nadu 11th, Telangana 12th, and Andhra Pradesh 18th.

Income inequalities

The World Bank’s estimates of Gini coefficients paint a poor picture for the southern states. Gini coefficient measures income inequalities as a ratio, with a higher figure representing greater inequality.

Based on 2011-12 series data, Kerala topped the list with a Gini coefficient of 0.38. Karnataka came in second with 0.36, while Tamil Nadu was fourth with 0.33. All three were worse off than the national average of 0.32.


Also read: For rich South India, the rest of the country is a tax burden


This means that income distribution is very skewed in these high NSDP states. Maharashtra, which topped the NSDP list, showed a similar trend, with the third-highest Gini coefficient, while low production and low per capita income states such as Bihar and Assam showed the lowest coefficients.

Andhra Pradesh’s coefficient was not calculated by the World Bank due to data limitations.

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26 COMMENTS

  1. When did Puducherry and Goa become a part North.. Even Maharashtra isn’t a part North.. Author is a butt hurt chapathi eater

  2. Yes we all love to be one India , but lets gave it India with her massive population is a administrative nightmare. Yes I think we eventually can make it right , but that will take years and that means more years of struggle and poverty for millions of Indians .
    Either states should have more administrative rights or country has to divide. Theres no Ill intent but that leads to better growth . There should be proper trade policies in place and one bank like they euro zone .
    Too large a country can and will lead to administrative chaos. We are all Indians .
    Either we take hundred years to get to some decent quality of living or come up with better solutions now.
    Currently I see a country fighting religion caste based rules , poverty , poor college education, less life expectancy. We sometimes pride ourselves a lot but fail to see our brothers and sisters suffer . If you can read this article and comment then you are well off .probably you are irate at the thought of this separation , that’s not the logical you speaking . If not tell a better solution

  3. South Indians don’t migrate to North in search of jobs, just like Americans don’t migrate to India for jobs. Kerala, Tamilnadu, andra, telangana, puducherry, karnataka, goa and maharashtra together is far richer than north. We all see an influx of North Indians into our state and we have been suffering with their ethical standards in terms of business and culture. Author educate yourself before writing an article.

  4. Well done Nikhil. Its clear the people of south are like the blacks of america which complain about stats being biased and racist. Its also really ironic and funny how people are saying uttar pradesh and maharashtra and rajasthan are bigger so they will always have bigger aggregates and they are complaining cause kf the size but when the rest of the states are compared to small states and UTS like delhi then they are triggered because small states will ObViOuSlY have a higher GDP??? So ironic as for the size, the only reason delhi and smaller states didn’t come in National income is smaller incomes and the bigger states being absent from the GDP because they have higher population so high GDP. Everything has a reason, don’t just blame everything to be biased you retards. And no j am not from the north before you retards judge.

  5. Well done Nikhil. Its clear the people of south are like the blacks of america which complain about stats being biased and racist. Its also really ironic and funny how people are saying uttar pradesh and maharashtra and rajasthan are bigger so they will always have bigger aggregates and they are complaining cause kf the size but when the rest of the states are compared to small states and UTS like delhi then they are triggered because small states will ObViOuSlY have a higher GDP??? So ironic as for the size, the only reason delhi and smaller states didn’t come in National income is smaller incomes and the bigger states being absent from the GDP because they have higher population so high GDP. Everything has a reason, don’t just blame everything to be biased you retards. And no j am not from the north before you retards judge.

    • Delhi, Chandigarh and Pudhucherry aren’t states and they have more access to central government funds especially Delhi, which is where all the taxes get accumulated hence it tops the list. The author don’t even know the difference between states and UTs. Also the article is poorly researched as he/she din’t include the HDI , tax collection share, electrification rate, number of paved roads etc.

  6. Pondicherry is in South, Goa is in West and Sikkim is a north East state. Delhi is capital of India and is therefore a Union territory and so is Chandigarh. I dont see Bihar and UP in the list. Lol. One of the most partial articles I have read. South Indian states are far rivher and more developed than north Indian states. It will take the north 50 years to catch up

  7. This could possibly be the worst ever researched article I have ever read in ThePrint news magazine. Keeping smaller territories like Delhi, Goa and Pondicherry, Chandigarh and Sikkim would obviously skew the results in favour of states with a smaller population. Hence the comparison is based either on authors incognizance or of outright sympathy to North India.

  8. Andhra’s low per capita income problem is related to centralized development around former capital Hyderabad and irrational, unscientific bifurcation against majority public opinion done by Central govt without properly assessing the consequences.

  9. Is Puducherry part of North India??? Also, the states occupying top 10 are either small states, UT or West but not North.

  10. Dumb Author needs a lesson in Geography before Economics. First let him figure out states of south India. Typical dumb hindi chavunist!!

    • That is a bit harsh. I am not sure where Nikhil is from. But we do know that the folks on the other side of Vindhyas do have limited information about the South of India – forget the biases that they carry. It has been there for a while and it seems to be getting only worse in the Feku world of today – we also call the post-truth world, where lies are spread on purpose by people in position of power and the position of influence. Nikhil is probably himself the victim of circumstances that he did not cross check his facts – even the basic ones.

  11. Nikhil. it is good to see a data based article. A comparison with Hong Kong is of course silly. I have not seen that comparison, but it like our pretentious politician who dress up fancily for videos in the public funding large house and teach us about what yoga poses to do. Coming back your article specifically, the first chart is comparing the incomparable, as the size of the states varies substantially – UP will always show up high on aggregates even when we know that it one of the poorest states. It is the same thing as comparing India with France, only a foolish politician will do. A per capita comparison is the most important comparison, along with the distribution of income – assuming we are looking at just the economic factors. At the same time, it is more appropriate to do a purchasing power based comparison with similar size states. Chandigarh or Goa are not comparable to Telangana or Kerala – Haryana probably is. Also, Puducherry is indeed in South. It should therefore be marked accordingly.

  12. When you make a chart about big states.. You don’t have to include Delhi,goa and pondicherry which are tiny and would obviously have high per capita .. among the larger states .. The southern states are in top 10 of almost all indexes

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