Ranchi: Jharkhand’s economy reached a historic peak as per capita income crossed the ₹1 lakh mark for the first time. According to the Economic Survey 2025-26 tabled in the Assembly on Saturday, the state is now outperforming national growth averages.
Finance Minister Radha Krishna Kishore presented the report, noting that sustained growth over the last decade has significantly reduced poverty across the state.
Massive Jump in Individual Income
The survey highlights a dramatic rise in the wealth of average citizens. Per capita income at current prices surged from ₹60,000 in 2016-17 to ₹1,16,663 in 2024-25.
The government projects even higher figures for the future:
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2025-26 Projection: ₹1,25,677
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2026-27 Projection: ₹1,35,195
Real per capita income—which measures actual purchasing power—has also climbed to ₹68,357, a 65.7% increase over 2011-12 levels.
A Growth Rate Above the National Average
Jharkhand’s economy continues to expand rapidly. In 2024-25, the state recorded a 7.02% real economic growth rate, surpassing India’s national average of 6.5%.
This marks the fourth consecutive year that Jharkhand has maintained a growth rate above 7%. Even during the pandemic, the state showed resilience, recovering with a robust annual growth rate of 8.4% over the last four years.
Structural Changes: The Rise of Services
The state’s economic structure is shifting toward modernization. The Services Sector has emerged as the largest contributor, now making up over 45% of the economy.
While the Industrial and Construction sectors are growing, the share of Agriculture has declined to about 6%, even though total food production continues to rise.
Success in Poverty Reduction
One of the survey’s most significant achievements is the sharp decline in poverty. Jharkhand’s poverty rate dropped from 42.10% to 28.81% in just five years. This 13.29% reduction outpaces the progress made by many other states in India.
Cooling Inflation
The survey offers good news for consumers as well. Inflation is expected to moderate to 4% in 2024-25, down from 6% the previous year. Additionally, the price gap between rural and urban areas has nearly closed.
