Explore the latest report on Southern Indian States’ economic performance, unemployment, labour force participation, and sectoral trends. Know how Tamil Nadu, Karnataka, Telangana, Kerala, and Andhra Pradesh are performing in 2023-24 compared to India.
📊 Introduction: Southern States’ Growth Below National Average
As per the 2023-24 Economic Surveys of Southern States of India, economic growth in Tamil Nadu, Karnataka, Kerala, Telangana, and Andhra Pradesh has lagged behind India’s overall GDP growth of 9.2%. While these States have relatively high per capita income, the benefits remain unevenly distributed, and unemployment continues to be a major concern.
📌 Key Insight:
Despite having higher income levels, only a few districts in each southern State have incomes above the State average, reflecting regional inequality.
📈 GSDP Growth Rate 2023-24: Southern States vs India
| State | GSDP Growth Rate (%) |
|---|---|
| India | 9.2% |
| Tamil Nadu | 8.2% |
| Telangana | 7.4% |
| Karnataka | 6.6% |
| Kerala | 6.3% |
| Andhra Pradesh | 6.2% |
👉 Read: India GDP Growth Report 2023-24
💰 Per Capita Income: High But Unequal
According to 2022-23 data:
Telangana has the highest average per capita income at ₹3.11 lakh.
However, only 3 of 33 districts in Telangana earn more than the State average.
Kerala stands out for relatively equal distribution, with 7 out of 14 districts having incomes above the State average.
| State | Avg. Per Capita Income (₹) | Districts Above State Avg. |
|---|---|---|
| Telangana | ₹3,11,646 | 3 out of 33 |
| Karnataka | ₹3,04,448 | 4 out of 31 |
| Kerala | ₹2,96,665 | 7 out of 14 |
| Tamil Nadu | ₹2,77,802 | 8 out of 38 |
| A.P. | ₹2,20,671 | 2 out of 26 |
🚧 Unemployment Still a Major Challenge
Although unemployment rates have improved since 2017-18, most southern States still exceed India’s average unemployment rate (as per 2023-24 data).
| State | Unemployment Rate (%) 2023-24 |
|---|---|
| A.P. | 7.5% |
| Telangana | 6.2% |
| Tamil Nadu | 4.5% |
| Kerala | 3.2% |
| Karnataka | 2.7% |
| India Avg | 4.1% |
🔎 Key Observation:
Karnataka is the only State performing better than the national average in unemployment reduction.
👷 Labour Force Participation Rate (LFPR): Still Below India’s Average
India's LFPR in 2023-24 stood at 60.1%, whereas:
Andhra Pradesh: 63.3%
Telangana: 61.2%
Kerala: 56.2%
Tamil Nadu: 58.8%
Karnataka: 56.8%
⚠️ States like Kerala and Karnataka lag behind significantly in workforce participation despite high literacy and income levels.
🔄 Employment Trends: Self-Employment on the Rise
Between 2017-18 and 2023-24:
Casual labour share has declined.
Self-employment has risen, mainly due to increased family-run enterprises.
Salaried job share remained largely stagnant.
For example:
In Tamil Nadu, self-employed rose from 32.8% to 34.2%, while casual labour dropped from 33.5% to 31%.
In Telangana, self-employed increased sharply by 8%, reaching 55.9%.
🔍 Sectoral Contribution: Services Lead, Agriculture Rises in Andhra
| State | Services Sector Share (%) FY24 | Agriculture Share (%) FY24 |
|---|---|---|
| Telangana | 65.9% | 13.3% |
| Kerala | 66.1% | 11.5% |
| Karnataka | 66.7% | 14.2% |
| Tamil Nadu | 62.7% | 12.4% |
| A.P. | 50.3% | 34.2% |
🔎 Notable Trend:
Andhra Pradesh’s agriculture sector contribution rose from 30% in FY15 to over 34% in FY24, while its services sector declined.
👉 Explore: Sector-wise GDP Trends in Indian States
📌 Conclusion: What This Means for Policy Makers & Students
Southern States need targeted employment generation strategies.
Economic development remains uneven across districts.
Growth is increasingly service-sector driven, but manufacturing still lags.
Labour policies, industrial decentralization, and skilling programs will play a critical role in future growth.
📚 For UPSC, MPPSC and other competitive exam students:
This report is important for Economy, Geography, Current Affairs, and Governance sections.
By Team Atharva Examwise #atharvaexamwise
