Southern states lead post-1991 growth, says EAC-PM report

Southern states have emerged as leading economic performers since economic liberalisation in 1991, according to an analysis released by the Economic Advisory Council to the Prime Minister (EAC-PM). The paper, authored by Sanjeev Sanyal and Aakanksha Arora, shows per capita incomes in southern states surged sharply after reforms, while Uttar Pradesh and Bihar regressed further after bifurcation.

Among western states, Maharashtra and Gujarat performed consistently, with Gujarat growing rapidly from the early 2000s. Delhi and Haryana did well in the north, though The Hindu reports Haryana's economic strength is mostly from Gurugram and adjoining areas. Punjab, boosted by the Green Revolution in the 1960s and 70s, has seen its performance decline steadily since, raising questions about whether an excessive focus on agriculture hindered industrialisation. Eastern states remain a concern: West Bengal, which had the third best per capita income in the 1960s, fell to 14th among major states.

Rajasthan and Odisha, which declined until liberalisation, improved thereafter but only modestly. Chhattisgarh and Madhya Pradesh have kept consistently low per capita incomes. The EAC-PM paper considered major states, excluding Goa, Himachal Pradesh, most northeastern states, and Union Territories except Delhi.