UP’s Per Capita Income Projected To Rise By Rs 43,000; Here’s Where It Ranks Nationally

Last Updated:June 09, 2025, 16:16 IST

The Finance Commission projects Uttar Pradesh’s per capita income to reach Rs 1,27,695 this year, up Rs 43,000 from Rs 84,000 last year, showing strong growth

Uttar Pradesh, India’s most populous state with nearly 240 million residents, has shown steady economic strength. According to recent data from the Finance Commission, the state’s per capita income offers key insights into its fiscal performance despite the pressure of a large population.

Arvind Panagariya, head of the Sixteenth Finance Commission, affirmed that Uttar Pradesh, even with the second lowest per capita income nationwide, is among India’s best-managed states financially.

What The Finance Commission Said

According to the Commission, Uttar Pradesh’s per capita income is projected to reach Rs 1,27,695 this financial year, a substantial increase from around Rs 84,000 the previous year, marking an annual increase of Rs 43,000 per person. The state’s GDP has now reached approximately Rs 22 lakh crore.

Panagariya highlighted Uttar Pradesh’s exemplary tax collection, which is the highest in the country in proportion to its Gross State Domestic Product (GSDP). The Finance Commission hopes other states can emulate Uttar Pradesh’s success in tax collection to resolve their revenue issues. Additionally, Uttar Pradesh has been successful in maintaining its expenditure within budgetary limits and managing a healthy loan profile.

The Finance Commission chairman noted that the Uttar Pradesh government has managed its expenditure efficiently, keeping it well within budget limits. As a result, the state’s fiscal deficit remains fully under control relative to its GDP.

Uttar Pradesh is reaping a double benefit on the financial front: strong internal tax collection and preferential treatment in horizontal transfers, as the Finance Commission traditionally allocates more funds to states with lower per capita income.

Which State Has The Lowest Per Capita Income

Among states with the lowest per capita income in the country, Bihar tops the list with an estimated figure of Rs 66,828—the lowest nationwide—followed by Uttar Pradesh. However, the Finance Commission has praised Uttar Pradesh for its prudent financial management.

It noted that while poor governance can derail even strong finances, this is not the case with UP. The state has maintained fiscal discipline, with a debt-to-GDP ratio that remains within manageable limits. This, the Commission added, eases the financial burden, as lower debt means a smaller share of expenditure is required for interest payments.

Which State Has The Highest Per Capita Income

Sikkim tops the list of Indian states in per capita income, with each resident earning approximately ₹5.88 lakh annually. Delhi ranks second, followed by Goa, where the per capita income is nearly three times the national average. In contrast, Uttar Pradesh stands at 32nd position, just above Bihar, which ranks last at 33rd. When it comes to overall GDP, Maharashtra leads the country with an economic output of around ₹44 lakh crore—roughly double that of Uttar Pradesh.

Location :

Uttar Pradesh, India, India

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