Five Indian states and Union Territories have crossed the World Bank's upper-middle-income benchmark based on per capita income, even as India as a whole remains classified as a lower-middle-income economy.
The contrast highlights the sharply different economic realities within the country. India's Atlas-method per capita income stands at $2,760, well below the $4,636 threshold for entering the upper-middle-income category.
Delhi Leads, Karnataka And Telangana Follow
Delhi tops the rankings with per capita income of $6,217, followed by Karnataka at $5,579, Telangana at $5,407 and Tamil Nadu at $5,329. Gujarat, with per capita income of $4,734, also clears the World Bank benchmark.
Their income levels are now comparable with several upper-middle-income economies. Delhi's per capita income, for instance, is close to South Africa, Fiji and Mongolia, while Karnataka and Telangana are above countries such as Indonesia and Vietnam.
Three major states are within touching distance of the cutoff. Maharashtra, at $4,628, misses the mark by just $8. Haryana is $9 short at $4,627, while Kerala needs only another $26 to cross the threshold.
At the other end of the spectrum, Bihar has the lowest per capita income among major states at $984. Uttar Pradesh follows at $1,403 and Jharkhand at $1,470.
The gap has widened despite economic progress across the country. The Gini coefficient measuring inequality between states rose from 0.230 in 1994-95 to 0.261 in 2025-26. The income gap between states at the 90th and 10th percentiles also widened from 2.38 times to 3.73 times.
There have also been major shifts in the rankings. Odisha and Uttar Pradesh had similar income levels three decades ago; Odisha now earns 75% more per capita. Assam's income is now 48% higher than Jharkhand's despite the two starting from similar levels.
Punjab, once the highest-earning large state in 1994-95, now has per capita income comparable to Rajasthan and trails seven other states.
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