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India's most competitive states

Last updated on: May 6, 2011 10:36 IST

India's most competitive states

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India's per capita income just crossed $1,000, and that has catapulted us into a league of countries that drive growth and consumption engine of the world.

As per the Institute for Competitiveness, India's regions are not growing uniformly.

States such as Goa and Delhi has per capita income of more than $1,500, equivalent to those of countries such as Bolivia and the Philippines.

While states such as Bihar and Uttar Pradesh have per capital income lower than $400.

Institute for Competitiveness used more than 400 indicators to arrive at the final index for competitiveness.

To find out the rankings of the 29 states in India, click on NEXT...


Image: Folk dancers participate in the rehearsals for the Navratri festival in Ahmedabad.
Photographs: Amit Dave/Reuters
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There are five high-income states (per capital income more than $900).

1. Goa
Competitiveness Score: 72.55

Goa is India's richest state with GDP per capita of Rs 70,329. It has a population of 1,734,000.

Tourism is Goa's primary industry: it handles 12% of all foreign tourist arrivals in India.

The land away from the coast is rich in minerals and ores and mining forms the second largest industry. Mining in Goa focuses on ores of iron, bauxite, manganese, clays, limestone and silica.

The Marmagao Port is afmous for handling iron ore exports.

Agriculture, while of shrinking importance to the economy over the past four decades, offers part-time employment to a sizable portion of the populace. Rice is the main agricultural crop, followed by areca, cashew and coconut.

The fishing industry is another big employment generator.

Medium scale industries include the manufacturing of pesticides, fertilisers, tyres, tubes, footwear, chemicals, pharmaceuticals, wheat products, steel rolling, fruits and fish canning, cashew nuts, textiles, brewery products.

Goa is also notable for its low beer, wine and spirits prices due to its very low excise duty on alcohol.

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Image: Panaji, Goa.

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2. Delhi
Competitiveness Score: 67.35

Delhi, the largest commercial centre in northern India, has a per capita income of Rs 70,024 the second highest in India. Its population is 18,104,000.

Key service industries include information technology, telecommunications, hotels, banking, media and tourism.

Delhi's manufacturing industry has also grown considerably.

Delhi's large consumer market, coupled with the easy availability of skilled labour, has attracted foreign investment.

Construction, power, telecommunications, health and community services, and real estate form integral parts of Delhi's economy.

It also has India's largest and one of the fastest growing retail industries.

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Image: Children admire an African (L) and Indian elephant at New Delhi's zoo.
Photographs: Reuters
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3. Maharashtra
Competitiveness Score: 62.77

Favourable economic policies in the 1970s led to Maharashtra becoming India's leading industrial state in the last quarter of 20th century.

Over 41% of the S&P CNX 500 conglomerates have corporate offices in Maharashtra.

Mumbai, Pune, Nasik, Aurangabad and western Maharashtra are the most developed.

Maharashtra's gross state domestic product is Rs 43,475. Its population is 111,645,000.

Maharashtra is India's leading industrial state contributing 15% of national industrial output and over 40% of India's national revenue.

Major industries in Maharashtra include chemical and allied products, electrical and non-electrical machinery, textiles, petroleum and allied products.

Other important industries include metal products, wine, jewellery, pharmaceuticals, engineering goods, machine tools, steel and iron castings and plastic wares.

Food crops include mangoes, grapes, bananas, oranges, wheat, rice, jowar, bajra, and pulses. Cash crops include groundnut, cotton, sugarcane, turmeric, and tobacco.

Maharashtra is one of India's largest exporters of software.

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Image: Matheran, a hill station in Maharashtra.

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4. Himachal Pradesh
Competitiveness Score: 59.88

Agriculture contributes over 45% to the net state domestic product. It is the main source of income and employment in Himachal.

Himachal has a rich heritage of handicrafts. These include woolen and pashmina shawls, carpets, silver and metal ware, embroidered chappals, grass shoes, Kangra and Gompa style paintings, wood work, horse-hair bangles, wooden and metal utensils and various other house hold items.

Himachal is extremely rich in hydro electric resources.

HP's GDP per capita stands at Rs 40,515. It has a population of 6,751,000.

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Image: Himachal Pradesh.

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5. Haryana
Competitiveness Score: 59.52

The economy of Haryana relies on manufacturing, business process outsourcing, agriculture and retail.

Haryana is also considered one of the most industrilised states in India with many SEZs.

The state has a developed banking system with over 4,500 bank branches. The two financial hubs of Haryana, Gurgaon and Faridabad lie on the south west of the state.

Haryana's GDP per capita stands at Rs 48,456. It has a population of 25,163,000.

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India has fourteen middle-income states (per capita income $500-$900).

1. Gujarat
Competitiveness Score: 61.14

Gujarat has some of the largest businesses in India. Major agricultural produce of the state include cotton, groundnuts (peanuts), dates, sugar cane, milk and milk products.

Industrial products include cement and petrol. Reliance Industries Limited founded by Dhirubhai Ambani, operates the oil refinery at Jamnagar, which is the world's largest grass-roots refineries.

The world's largest shipbreaking yard is in Gujarat near Bhavnagar at Alang.

Over 20% of the S&P CNX 500 conglomerates have corporate offices in Gujarat.

Gujarat's GDP per capita stands at Rs 40,004. It has a population of 58,500,000.

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2. Tamil Nadu
Competitiveness Score: 59.77

Services contributes to 45% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 21%.

Government is the major investor in the state with 51% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%.

Tamil Nadu has a network of about 113 industrial parks. It is one of the highly industrialised states in India.

Over 11.2% of the S&P CNX 500 conglomerates have corporate offices in Tamil Nadu.

Many heavy engineering and manufacturing companies are located in and around the suburbs of Chennai and Tiruchirappalli.

Tamil Nadu has seen major investments in the automobile industry.

Tamil Nadu's GDP per capita stands at Rs 34,417. Its population is 67,161,000.

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Image: A man dressed as a Hindu god Ganesh, the deity of prosperity, rides a motorcycle.
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3. Punjab
Competitiveness Score: 59.75

Punjab has one of the best infrastructure in all of India. Punjab is called the 'Granary of India' or 'India's bread-basket'.

The Firozpur district is the largest producer of wheat and rice in the state.

In worldwide terms, Punjab produces 2% of the world's cotton, 2% of its wheat and 1% of the world's rice.

Besides agriculture other major industries include manufacture of scientific instruments, electrical goods, machine tools, textiles, tourism, sewing machines, sports goods, starch, fertilisers, bicycles, and the processing of pine oil and sugar.

Punjab's GDP per capita stands at Rs 38,859. Its population is 27,475,000.

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Image: Youths perform the Bhangra, a traditional Punjabi dance.
Photographs: Munish Sharma/Reuters
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4. Karnataka
Competitiveness Score: 59.25

Nearly 56% of the workforce in Karnataka is engaged in agriculture and related activities.

Karnataka is the manufacturing hub for some of the largest public sector industries in India, including Hindustan Aeronautics Limited, National Aerospace Laboratories, Bharat Heavy Electricals Limited, Indian Telephone Industries, Bharat Earth Movers Limited and Hindustan Machine Tools, which are based in Bangalore.

Many of India's premier science and technology research centers, such as Indian Space Research Organization, Central Power Research Institute, Bharat Electronics Limited and the Central Food Technological Research Institute, are also headquartered in Karnataka.

Karnataka also leads the nation in biotechnology. It is home to India's largest biocluster, with 158 of the country's 320 biotechnology firms being based here.

Seven of India's leading banks, Canara Bank, Syndicate Bank, Corporation Bank, Vijaya Bank, Karnataka Bank, Vysya Bank and the State Bank of Mysore originated in this state.

A majority of the Rs 3,500 crore silk industry in India is headquartered in Karnataka.

Karnataka's GDP per capita stands at Rs 32,411. Its population is 59,013,000.

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Image: Mysore Palace.

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5. Andhra Pradesh
Competitiveness Score: 58.34

Agriculture has been the chief source of income for the state's economy.

The service sector of the state accounts for 43% of the gross state domestic product (GSDP) and employs 20% of the work force.

Andhra Pradesh ranks second in India in terms of mineral wealth.

The state is famous as hub for both information technology and biotechnology.

Andhra's GDP per capita stands at Rs 31,697. Its population is 84,227,000.

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Image: Charminar, Hyderabad.

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6. Uttarakhand
Competitiveness Score: 57.81

Uttaranchal with an abundant natural resource base, large forest cover and huge power potential has the potential to develop as one of the most prosperous states in India.

Uttarakhand registered the 3rd highest growth rate among all Indian states in the 2009-10 fiscal.

The state carved out of Uttar Pradesh, has a per capita GDP of Rs 28,671. Its population is 9,849,000.

Agriculture continues to be the major source of income for more than three-fourths of the state's population.

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7. Chhattisgarh
Competitiveness Score: 57.57

The naxal-affected Chhatisgarh sprung a surprise with highest economic growth in 2010-11.

Backed by a roubst growth in agriculture and industrial production, the state, which was formed in November 2000, posted a growth rate of 11.49 per cent in 2009-10.

The GDP per capita stands at Rs 24,522. Its population is 24,040,000.

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Image: Villagers travel by train on the outskirts of Raipur.
Photographs: Kamal Kishore/Reuters
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8. Kerala
Competitiveness Score: 54.85

God's own country has a huge fiscal deficit but its social indicators are on par with the developed world. It has the highest human development index in India.

Economy is dependent on remittances. Agriculture, marine products and the service industry dominate the Kerala economy. Tourism is another revenue earner for the state.

Kerala's GDP per capita stands at Rs 39,815. Its population is 34,403,000.

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Image: Traditional house boat in Kerala.
Photographs: Courtesy: KTDC
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9. Tripura
Competitiveness Score: 54.53

Tripura's economy is mainly dependent on agriculture.

Though Tripura has a huge potential, the industry sector is underdeveloped.

High poverty and low per capita income have been the biggest drawbacks of Tripura.

Lack of irrigation facilities and infrastructure has aggravated the state's economic woes.

Tripura's GDP per capita stands at Rs 24,034. Its population is 3,588,000.

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Image: An elephant during a fair in Tripura.

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10. West Bengal
Competitiveness Score: 54.37

West Bengal is among the leading industrialised states of India.

It has scored well in terms of per capita income and human development indicators.

West Bengal's growth was faster than India as a whole in per capita terms until 2004-05, after which its expansion has fallen. The per capita income of West Bengal is now lower than the national average.

Agriculture and service sector contribute to the state's economic growth. West Bengal has had the largest number of and the most rapid growth in small-scale and cottage industries.

Rice is considered to be the principal food crop of West Bengal. Agriculture is the main source of income for about 70 per cent of the population. Jute and rice are the principal crops grown in the state, along with tea, maize, tobacco and sugarcane.

West Bengal's GDP per capita stands at Rs 27,062. Its population is 88,948,000.

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Image: Victoria Memorial, Kolkata.
Photographs: Courtesy: West Bengal tourism.
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11. Meghalaya
Competitiveness Score: 53.48

Meghalaya has an agrarian economy. It's service sector is dominated by real estate and insurance companies.

The important crops of the state are potato, rice, maize, pineapple and banana.

Meghalaya has a rich base of natural resources. These include minerals such as coal, limestone, sillimanite, Kaolin and granite among others. Meghalaya also has a large forest cover, rich biodiversity and numerous water bodies.

During the last few years, Meghalaya has developed into a growing destination for both domestic and international tourists.

The Planning Commission has fixed Meghalaya's annual plan for 2011-12 at Rs 2,727 crore (Rs 27.22 billon), an increase of 22 per cent over the previous year's fund allocation of Rs 2,230 crore (Rs 22.3 billion).

Meghalays's GDP per capita stands at Rs 25,349. Its population is 2,601,000.

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Image: Meghalaya.

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12. Mizoram
Competitiveness Score: 53.35

Mizoram lags behind economically due to the lack of markets and raw materials.

The state has good potential for economic growth in the areas of agriculture, horticulture, tourism and handicraft. Around 70 per cent of the population is engaged in agriculture.

The lack of adequate transport infrastructure has hindered the economic growth and development.

Mizoram registered a Gross State Domestic Product (GSDP) growth of 13.95 per cent in 2009-10.

Cottage industry and other small-scale industries play an important role in the economy.

Mizoram's GDP per capita stands at Rs 24,337. Its population is 997,000.

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Image: Mizoram.

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13. Arunachal Pradesh
Competitiveness Score:50.75

Arunachal Pradesh clocked the highest economic growth rate in the country of 22.43 per cent in 2009-10.

Agriculture drives the economy. Rice, maize, millet, wheat, pulses, sugarcane, ginger, and oilseeds are the main crops grown in the state.

Arunachal is also ideal for horticulture and fruit orchards. Its major industries are rice mills, fruit preservation units, handloom and handicrafts.

Arunachal Pradesh accounts for a large percentage of India's untapped hydroelectric power production potential.

The tourism sector is yet to meet its full potential. The restricted/protected area permit restricts the number of foreign tourists.

Arunachal Pradesh's GDP per capita stands at Rs 25,110. Its population is 1,231,000.

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Image: A snow leopard in Arunachal Pradesh.
Photographs: Courtesy: Arunachal Pradesh tourism
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14. Sikkim
Competitiveness Score: 48.64

Sikkim is the least populous state in India and the second-smallest state after Goa.

Sikkim has a booming economy dependent on agriculture and tourism, and has the only open border between India and China for trade.

The state is rich in natural resources and has a huge potential for hydel power.

It is an ideal destination for industries to invest in. The state plans to expand agro-based industries, horticulture and floriculture, forest based industries, animal husbandry and dairy products, tourism and information technology sectors.

Sikkim is also a popular tourist destination.

Sikkim's GDP per capita stands at Rs 29,506. Its population is 608,000.

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Image: A tourist rides on a yak after a heavy snowfall near the India-China trade route, north of Gangtok.
Photographs: Rupak De Chowdhuri/Reuters
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There are 10 states in the low-income group (per capita income uo to $500).

1. Rajasthan
Competitiveness Score: 57.47

Rajasthan's economy is primarily agricultural and pastoral. Tourism too contributes a major chunk to the economy.

The main industries are mineral based, agriculture based, and textiles. Known as a shopper's paradise, Rajasthan is famous for textiles, semi-precious stones and handicrafts.

Rajasthan's GDP per capita stands at Rs 22,350. Its population is 67,121,000.

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Image: Rajasthan.

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2. Madhya Pradesh
Competitiveness Score: 55.16

About 70% of the total work force of the state depends directly or indirectly on agriculture.

Mines and industries play important roles in economic development of the state.

There are many flourishing textile mills in the state and artificial silk manufacturing plants located at Ujjain, Nagda, Indore and Gwalior.

The Nepa Mills produces newsprint for the country. Diesel engines are manufactured at Indore and attractive pottery and carpets are produced at Gwalior.

A sizeable population in the villages makes traditional crafts such as chanderi sarees, leather and clay toys.

Madhya Pradesh's GDP per capita stands at Rs 16,963. Its population is 71,439,000.


Image: Sanchi Stupa, Madhya Pradesh.
Photographs: Courtesy: Madhya Pradesh Tourism
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3. Orissa
Competitiveness Score: 54.98

Orissa is one of the poorest states in India.

It has abundant natural resources and a large coastline. It contains a fifth of India's coal, a quarter of its iron ore, a third of its bauxite reserves and most of the chromite.

Recently the number of companies who have signed Memorandum of Understanding (MoUs) to set up steel plants in the state has gone up to 50, including Posco of South Korea which has agreed to construct a mammoth $12 billion steel plant near Paradip port.

The Central government has agreed to accord SEZ (Special Economic Zone) status to eight sites in Orissa.

Orissa's GDP per capita stands at Rs 22,287. Its population is 40,512,000.

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4. Bihar
Competitiveness Score: 54.60

The economy of Bihar is largely service oriented, but it also has a significant agricultural base. The state also has a small industrial sector.

Bihar has significant levels of production of mango, guava, litchi, pineapple, brinjal, cauliflower, bhindi, and cabbage.

Bihar's GDP per capita stands at Rs 11,416. Its population is 96,847,000.

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Image: Ashoka Pillar.
Photographs: Courtesy: Bihar Tourism
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5. Uttar Pradesh
Competitiveness Score: 54.50

The major economic activity in the state is agriculture.

Kanpur is the largest shoe-manufacturing centre in the country with strong leather , engineering, chemical and other booming sector industries.

The economy also benefits from the state's thriving tourism industry.

Uttar Pradesh's GDP per capita stands at Rs 15,055. Its population is 198,455,000.

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Image: Varanasi, Uttar Pradesh.
Photographs: Courtesy: UP Tourism
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6. Jharkhand
Competitiveness Score: 54.22

The major chunk of the population is involved in agriculture with major cultivation crops like paddy, wheat, maize and pulses.

Copper, iron, coal, manganese, mica, chromites and bauxite are found in abundance here.

Bokaro Steel Plant and Tata Steel are located here.

Jharkhand's GDP per capita stands at Rs 17,956. Its population is 31,184,000.

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Image: Ranchi Railway station, Jharkhand.

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7. Assam
Competitiveness Score: 53.96

Apart from tea and petroleum refineries, Assam has few industries of significance.

Assam is a major producer of crude oil and it accounts for about 15% of India's crude output. Although having a poor overall industrial performance, several other industries have nevertheless been started.

Moreover, there are other industries such as jute mill, textile and yarn mills, silk mill, etc.

Assam's GDP per capita stands at Rs 18,877. Its population is 30,317,000.

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Image: A train in Assam.
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8. Nagaland
Competitiveness Score: 53.92

Agriculture is the most important economic activity in Nagaland, with more than 90% of the population employed in the fields.

Crops include rice, corn, millets, pulses, tobacco, oilseeds, sugarcane, potatoes, and threads. Forestry is also an important source of income.

Cottage industries such as weaving, woodwork, and pottery are also an important source of revenue.

Tourism is important, but largely limited due to insurgency since the last five decades.

Nagaland's GDP per capita stands at Rs 18,490. Its population is 2,232,000.

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Image: Dimapur, Nagaland.

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9. Jammu & Kashmir
Competitiveness Score: 52.29

Jammu and Kashmir's economy is predominantly dependent on agriculture and allied activities.

Horticulture plays a vital role in the economic development of the state. Before insurgency intensified in 1989, tourism formed an important part of the Kashmiri economy.

Gulmarg, one of the most popular ski resort destinations in India, is also home to the world's highest green golf course.

Jammu & Kashmir's GDP per capita stands at Rs 20,604. Its population is 11,620,000.

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Image: Dal Lake.

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10. Manipur
Competitiveness Score: 52.16

Manipur economy is based on agriculture, forest products, industries, mining, and tourism sectors.

The agrarian economy has various kinds of crops like rice, maize, pulses, and wheat.

The Manipur economy gets its revenue from forest products and mining sector. With a large forest cover, these products are manufactured are even exported to foreign countries.

Manipur's GDP per capita stands at Rs 18,347. Its population is 2,430,000.


Image: Manipuri dance.

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