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- Delhi Per Capita Income ₹5.20 Lakh; India States In Upper Middle Income
New Delhi23 minutes ago
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According to the per capita income standards of the World Bank, 5 states of India have now joined the upper-middle-income category. However, the country still remains a lower-middle income economy.
This has come to light in an analysis by Moneycontrol on the basis of World Bank classification and income data of states. This week, the World Bank has promoted Sri Lanka, Vietnam and the Philippines to the higher-income category after continuous improvement.
India’s situation and World Bank’s standards
India is currently included among the lower-middle income countries with a per capita income of $2,760 i.e. about ₹2.63 lakh under the Atlas-method. This is slightly higher than the lower-middle income average of $2,488 (about ₹2.37 lakh) and well below the upper-middle income threshold of $4,636 (about ₹4.42 lakh).
The World Bank’s classification rules are as follows…
- Low-income countries: Per capita income less than $1,175 i.e. about ₹1.12 lakh.
- Lower-middle income: Per capita income between $1,175 (₹1.12 lakh) to $4,635 (₹4.42 lakh).
- Higher-Income: Per capita income of more than $14,375 i.e. Rs 13.71 lakh.
Delhi on top, these 5 states crossed the benchmark
Delhi leads the country with a per capita income of $6,217 (about ₹ 5.93 lakh). This is followed by Karnataka (₹5.32 lakh), Telangana (₹5.15 lakh), Tamil Nadu (₹5.08 lakh) and Gujarat (₹4.51 lakh). These five states have easily crossed the World Bank’s upper-middle income cutoff.
On the other hand, three major states missed the list by a very narrow margin. The per capita income of Maharashtra is ₹4,41 lakh, which is just $8 i.e. Rs 763 less than the cutoff. Haryana with ₹4,40 lakh missed the mark by $9 or Rs 858, while Kerala with ₹4,39 lakh missed the benchmark by just $26 or Rs 2,480.
Bihar is the poorest state, earning less than Nepal
In contrast, Bihar remains the country’s poorest large state with a per capita income of $984 (about ₹93,895). This is followed by Uttar Pradesh (₹1.33 lakh) and Jharkhand (₹1.40 lakh). The average income of people of Bihar, Uttar Pradesh and Jharkhand is less than that of Nepal and Sub-Saharan African countries.
Big changes have come in the last three decades
In the year 1994, no major state of India was in a position to become a middle-income economy under the current standards of the World Bank. Today the income of many states has become equal to countries like South Africa (₹ 5.98 lakh), Fiji (₹ 5.94 lakh) and Mongolia (₹ 5.92 lakh). Karnataka and Telangana have even overtaken countries like Indonesia (₹4.88 lakh) and Vietnam (₹4.74 lakh).
Economic inequality increased between states
Despite economic progress, inequality among states has increased. The gap between states has increased from 0.230 in 1994-95 to 0.261 in 2025-26. At the same time, the difference between the 90th and 10th percentile states has increased from 2.38 times to 3.73 times, which shows increasing economic distance.
According to the data, middle-income states have recorded the fastest growth in this period and have grown 36.7 times over 1994-95. In comparison, the group of richest states has increased by 28.3 times and the group of poorest states has increased by 26.6 times. Karnataka, Kerala, Andhra Pradesh and Tamil Nadu remained ahead in this growth, while Bihar, UP and Jharkhand continued to lag behind.
Some benefit and some are left behind
Three decades ago, the income level of Uttar Pradesh and Odisha was almost the same, but today the per capita income of Odisha is 75% more than that of UP. Similarly, Jharkhand and Assam were once on an equal footing, but in the year 2025-26, the per capita income of Assam was recorded 48% more than that of Jharkhand.
There has been a big upheaval for Punjab. Punjab, which was the highest earner among all the big states in the year 1994-95, has now come at par with Rajasthan and has left behind seven other states of the country.
What is Atlas Method?
The World Bank uses the Atlas method to measure the per capita income of countries. In this, an average of three years’ exchange rate is calculated, so that the effect of inflation and currency fluctuations is minimized and correct comparison can be made.
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