Figure 6. Income Index across various states (2007-08)

These states have incomes below the national average, with Bihar having the lowest income per capita. This is also reflected in the lowest monthly per capita consumption expenditure (MPCE) adjusted for inflation and inequality for the state. Yet, what is worth highlighting is that these poorer states, despite low absolute incomes, have witnessed high Net State Domestic Product (NSDP) growth rates (especially Bihar, Chhattisgarh, Orissa, and Uttarakhand which had growth rates above 10 per cent per annum).

The change in the Income Index between 1999–2000 and 2007–8 is almost the same as the change in the HDI over the same period for India (that is, 21 per cent).