Economic Development: Condition Of Tripura According To The Per capita Income::By:Kiran Bhowmik

To follow Gerald M. Meier, economic development is a process whereby real per capita income of a country increases over a long period of time subject to the stipulations that the number below an absolute poverty line does not increase and that the distribution of income does not become more unequal. Thus, the definition of economic development focuses on the increase in income as the objective of development.

Economic development is a process whereby real per capita income rises over a long period. So, real per capita income may be used as an index of development. Per capita income as an index of economic development is very much popular for various reasons. Rising per capita income index represents the fact that a country as a whole is getting better off. Admittedly, per capita income is an average. But a rising average indicates that in per capita terms there is an increase in the availability of goods and services. This index is specially suitable for the less developed countries. In this index, population growth is also taken in to consideration. For the less developed countries, development can have no meaning unless population growth is brought in to picture. This index is also helpful for comparing the living standards among countries and their performance.

According to the Economic Review Of Tripura 2011-12 the economy of Tripura is characterized by high rate of poverty , low Per- capita income , low capital formation ,in-adequate infrastructure facilities, geographical isolation and mineral resources, low progress in industrial field and high un-employment problem.

The economy of Tripura is agrarian. More than fifty percent of its population depends on agriculture for livelihood and contribution of agriculture and allied activities to the Gross State Domestic Product (GSDP) is twenty three percent. The land available for cultivation is relatively restricted. Terrain and forest cover are such that only twenty percent of geographical area is cultivable.

The ongoing surge in prices of the food items in the state as well as in the country has significant implications for the agriculture sector as well as overall macroeconomic and financial stability. Agriculture growth has remained much lower than the growth rates witnessed in the industrial and services sectors in the State.

The average annual growth rate in real terms of Gross State Domestic Product (GSDP) at 2004-05 prices or in real terms for 2011-12(Advance) was 8.6 percent. There is no denying the fact that the State has put efforts for ensuring sustainable economic growth after having serious law and order set-backs by augmenting better fiscal consolidation and economic development, which has also been appreciated by the Planning Commission of India in-particular and other Central Ministries.

The Gross State Domestic Product (GSDP) at current prices increased from Rs.8, 903.53 crore in 2004-05 and to Rs.11, 797.07 crore in 2007-08 and to Rs. 19,909.58 crore in 2011-12(Advance) and to Rs.22, 138.82 crore in 2012-13(Quick).

The per capita income of the State also rose steadily from Rs.24,394 in 2004-05 to Rs.31,111 in 2007-08 and to Rs.45,087 in 2010 -11(Provisional) and to Rs.55,004 in2012-13(Quick).

The liberalization and reforms of the Indian economy started in 1990s with the proclaimed objective to accelerate industrial growth in the country has not given the much – needed boost for any industrial growth in this backward State .In fact, the State Government is the main facilitator for any investments in the State. The high growth rate of the National economy through economic reforms has limited impact and effect on industrialization for overcoming the backwardness as well as increasing the gainful employment in Tripura and, North Eastern Region as a whole.

Although the economy of Tripura is characterized by high rate of poverty , low Per- capita income , low capital formation ,in-adequate infrastructure facilities, geographical isolation and mineral resources, low progress in industrial field and high un-employment problem but according to the Economic Review Of Tripura 2011-12 per capita income is gradually increase. So, we can say that the economic development of Tripura is increasing at increasing rate.

About The Author:Kiran Bhowmik is a student of Economics. He is pursuing his Master Degree in Economics in Tripura University. He stays at Udaipur. He writes on economics, current affair and politics. He has many published papers to his credit in prestigious journals. Writing is his hobby. You can contact him over the mobile number 8794219011 or you can mail him  He is the Executive News Editor of the prestigious and popular website of state

Disclaimer:The opinions expressed within this article are the personal opinions of the author. 



Date: 16/10/2015 06:42:13pm E-mail:

Name: Sanjib Debroy

Very informative article.It is a fact taht per capita income of Tripura is increasing with the passage of time. It is a healthy sign.It is good for the state.

Date: 05/10/2015 03:14:56pm E-mail:

Name: S Banik

An eye opener. Very good article.

Date: 03/10/2015 01:49:53pm E-mail:

Name: Manti Das

Very good article on the economics of Tripura. More such article should be published.



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