India’s widening economic gap between rich and poor states alarming, says NITI Aayog Vice Chairperson

India’s economic growth story is being increasingly shadowed by a troubling divergence between high-income and low-income states, warned NITI Aayog Vice Chairperson Suman Bery during a policy roundtable in New Delhi on September 30, 2025. Bery called the growing disparity “worrisome” and urged policymakers to address structural imbalances that threaten the country’s long-term inclusive development goals.

“While India’s GDP is growing, the benefits are not evenly distributed. The divergence between richer states like Maharashtra, Gujarat, and Karnataka and poorer states such as Bihar, Uttar Pradesh, and Odisha is becoming more pronounced,” Bery said. He emphasized that this trend could undermine national cohesion and economic resilience if left unaddressed.

The remarks come amid fresh data from NITI Aayog’s State Development Index 2025, which shows that the top five states contribute nearly 45% of India’s GDP, while the bottom ten states account for less than 15%. The gap in per capita income, infrastructure access, and human development indicators has widened over the past decade, despite targeted central schemes.

India’s State-Level Economic Divergence – Key Indicators

Bery highlighted that while some divergence is natural in a federal economy, the current trajectory risks creating “two Indias”—one that is globally competitive and another that struggles with basic development metrics. He called for a renewed focus on fiscal federalism, targeted investments, and capacity building in lagging states.

Suman Bery’s Recommendations – Bridging the Economic Divide

The Vice Chairperson also stressed the importance of cooperative federalism, urging state governments to take ownership of reforms and collaborate with the Centre on outcome-based programs. “We need a new compact between the Centre and states—one that respects autonomy but demands accountability,” Bery said.

His comments have sparked renewed debate among economists, policy experts, and political leaders. While some praised the candour and urgency of the message, others called for deeper structural reforms, including land and labour market liberalization in lagging states.

Social media platforms lit up with reactions to Bery’s statement, with hashtags like #EconomicDivergence, #NITIAayogAlert, and #TwoIndias trending across policy circles.

Public Sentiment – Social Media Buzz on NITI Aayog VC’s Statement

Experts believe that addressing the divergence will require a multi-pronged approach, combining fiscal incentives, institutional reforms, and community engagement. “We must move beyond GDP and look at multidimensional poverty, resilience, and opportunity,” said Dr. Radhika Menon, senior economist at the Centre for Policy Futures.

The NITI Aayog is expected to release a detailed policy paper in November 2025 outlining a roadmap for balanced regional development. The document will include state-specific diagnostics, reform scorecards, and investment priorities for the next five years.

India’s Regional Development Outlook – Projected Trends (2025–2030)

As India aims to become a $5 trillion economy, bridging the gap between its high and low-income states will be critical to sustaining growth and ensuring social cohesion. Bery’s warning serves as a timely reminder that inclusive development is not just a moral imperative—it’s a strategic necessity.

Disclaimer: This article is based on publicly available policy statements, verified economic data, and expert commentary. It does not constitute investment advice or political endorsement. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.