Economic Analysis of State-wise GSDP and Income Trends

This document is a research report by the Economic Research Department of the State Bank of India, focusing on the state-wise Gross State Domestic Product (GSDP) and per capita income trends in India, particularly in the context of the COVID-19 pandemic. It outlines the impact of the pandemic on global income inequality and contrasts it with the situation in India, where many states have embraced competitive federalism, fostering entrepreneurship and innovation. The report analyzes data over the last decade, categorizing states based on their per capita income growth relative to the national average. It presents findings on the average real GDP growth post-pandemic, highlighting contributions from states like Maharashtra and Uttar Pradesh. The report also discusses the narrowing gap in economic performance between better-off and laggard states, indicating a trend towards balanced regional growth. The findings are supported by statistical analysis, including Spearman’s Rank Correlation Coefficient, which demonstrates strong agreement in the rankings of states based on income growth.