The top five states contribute about 46 per cent to the economy. South India accounts for a third. Growth, and most of incremental growth is concentrated in the south, Maharashtra, and Gujarat. Sample this. As much as 80 per cent of air traffic and 60 per cent of port capacity is concentrated in 21 high growth-high affluence clusters. Altogether 49 clusters contribute towards 70 per cent of the GDP. Most are in the growth corridors.
It is not geography, but the political process, public ethos, and governance that has influenced the north-south growth trajectories. The southern states present a unique but time-tested inclusive and people - centric model of development. They have identified, and adopted the growth drivers, developed an innovative but robust toolkit that holistically addresses the complex character of the development ethos.
Growth & Per Capita Income of North and South not Likely to Converge
India's per capita income (factoring in purchasing power) is at an inflection point. The GDP is at a decisive stage to enable India to emerge as an economic power. Only five per cent of the Indian population is affluent and wealthy, a fifth is rich and the next 20 per cent are well off. However, the devil is in the details. Over 75 per cent of the above reside in the south, Mumbai, and the National Capital Region (NCR).
The average per capita income of the southern states is about three times that of Uttar Pradesh (UP) and Jharkhand and five times that of Bihar. But the gaps go beyond the per capita income.
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