The five states of the union significantly influence the speed of the South Indian economy. These states also have higher per capita income than the national average, and they remain India’s economic development engine.
Personal income per unit
Tell us also the figures of per capita income, state debt, tax income, interest payment ratio, and fiscal deficit of the states having the best economy in India. On the per capita income front, Telangana ranked first in FY22 with a per capita income of Rs 275,443. Telangana registered the highest with Rs 2,65,623; Karnataka comes second. Tamil Nadu follows in third place with a per capita income of Rs 2,41,131, Kerala in fourth place with Rs 2,30,601, and Andhra Pradesh in fifth place with Rs 2,07,777. Every one of these states has a per capita income above the national average of Rs 150,007.
lowest debt state
Among the five main South Indian states, Telangana has the lowest debt to GSDP ratio—25.3 per cent—based on state debt to GSDP ratio data. In the ranking, it comes next to Karnataka (37.2%), Tamil Nadu (27.7%), Andhra Pradesh (32.8%), and Kerala (37.2%).
On the front of tax income, who leads?
On the tax income front among the states, Tamil Nadu ranks highest in FY22. With the largest tax income of Rs 1,26,644 crore, Tamil Nadu boasts the top Budget Estimate (BE) position. Karnataka (Rs 1,11,494 crore) follows it. Telangana’s tax collection comes at Rs 92,910 crore; Andhra Pradesh’s comes at Rs 85,265 crore; Kerala’s comes at Rs 71,533 crore. More tax collections mean the state can devote more to bettering infrastructure, health, and education.
Gross Deficit in Fiscal Policies
Since the government has to borrow less money to cover state spending, a low fiscal deficit ratio shows the state’s economic strength. In this sense, Karnataka leads. With a fiscal deficit of 2.8%, it is the lowest. Andhra Pradesh (3.2 percent), Tamil Nadu (3.8 percent), and Telangana (3.9 percent) come next. With a budget deficit of 4.2%, Kerala comes last.
Interest paid in line with income sources
The ratio of interest payments to revenue receipts helps determine the loan repayment required amount. A large interest payment reduces the state’s available funds for development projects.
In this scenario, Telangana (11.3 per cent) has the lowest interest payment ratio among the states of South India. In fifth place, it comes to Karnataka (14.3%), Andhra Pradesh (14.3%), Kerala (18.8%), and Tamil Nadu (21%). These five South Indian states compete with one another. On most economic criteria, Telangana and Karnataka excel, nevertheless. The other three states follow very closely as well. All these states are the engines of national economic development.
