GSDP: Total monetary value of all final goods and services produced within a State’s geographical boundary in a year, before deducting depreciation.
Rajasthan 2025-26 (AE):
- Current Prices: ₹18.75 lakh crore (growth 10.24%)
- Constant Prices: ₹9.82 lakh crore (growth 8.66%)
- Share in All-India GDP: 5.25%
NSDP (Net State Domestic Product) : NSDP is the net monetary value of all goods and services produced within a state during a given financial year, after deducting depreciation (consumption of fixed capital) from the Gross State Domestic Product (GSDP). It measures the economy’s ‘net’ productive output.
NSDP = GSDP – Consumption of Fixed Capital (CFC)
Where CFC = replacement value of capital stock used up (wear & tear of machinery, buildings) during production.
Rajasthan 2025-26 (AE):
- Current Prices: ₹16.85 lakh crore (growth 10.48%)
- Constant Prices: ₹8.59 lakh crore (growth 8.90%)
Why NSDP is a Better Measure
- True Wealth Addition – Captures genuine new wealth; GSDP overstates by ignoring capital wear-out.
- Sustainability Check – Reveals if productive base is shrinking when depreciation > new investment.
- Basis for Per Capita Income – PCI = NSDP ÷ mid-year population. Rajasthan’s PCI = ₹2,02,349 (current), ₹1,03,189 (constant) in 2025-26.
- Welfare Indicator – Better reflects “standard of living and well-being of people.”
“Per Capita Income (PCI) at current prices reflects the standard of living and well-being of the population of a state. A comparison of Rajasthan’s PCI growth with the all-India average over the last five years reveals that in the initial post-pandemic years, Rajasthan lagged behind the national average; however, in the last three years, it has consistently outpaced the national growth rate.”
PCI Growth – Rajasthan vs All India (At Current Prices)
| Year | Rajasthan PCI (₹) | Growth % | All-India PCI (₹) | Growth % | Gap (pp) |
| 2023-24 | 1,67,027 | 12.05 | 1,88,892 | 11.7 | +0.35 |
| 2024-25 | 1,85,095 | 10.82 | 2,05,324 | 8.7 | +2.12 |
| 2025-26 (AE) | 2,02,349 | 9.32 | 2,19,575 | 6.9 | +2.42 |
Key Observations
- PCI at Constant Prices (2025-26): Rajasthan grew by 7.76% to ₹1,03,189, again above the All-India real growth trend.
- Long-Term Trajectory: From ₹57,192 (2011-12) to ₹2,02,349 (2025-26) — a 3.54× rise in 14 years.
Drivers of Faster Growth
- Robust GSDP growth (10.24% nominal, 8.66% real in 2025-26) — exceeding India’s GDP growth of 8.0% and 7.4% respectively.
- Surge in renewable energy, MSMEs, mining (HRRL refinery), tourism revival.
- Rising Rajasthan Investment Summit 2024 – MoUs worth ₹35 lakh crore.
- Strong services sector (47.71% of GSVA) and improved bank credit-deposit ratio (89.61% vs national 80.43%).
Despite faster growth, Rajasthan’s absolute PCI (₹2,02,349) is still ₹17,226 lower than the All-India PCI (₹2,19,575) in 2025-26 – indicating convergence is underway but not complete.
Per Capita Income (PCI), derived by dividing NSDP by mid-year population, is a widely used welfare indicator, but in a heterogeneous State like Rajasthan it conceals critical dimensions of inclusivity and inequality.
Limitations of PCI as a Welfare Measure
- Masks Inter-District Disparities: State PCI of ₹1,85,095 (2024-25) hides a nearly 2.5× gap between top districts like Alwar (₹2,68,321) and Jaipur (₹2,60,991) and bottom districts like Dungarpur (₹1,06,779) and Banswara (₹1,20,686).
- Ignores Income Inequality: Being a simple average, PCI cannot show whether growth is broad-based or concentrated among a wealthy few, treating mining-rich Barmer and desert-poor Jaisalmer with the same yardstick.
- Overlooks Non-Monetary Welfare: PCI does not capture health, education, and sanitation outcomes — Rajasthan’s IMR (29) exceeds India’s (25), and literacy (66.1%) trails the national average (73.0%).
- Hides Gender and Rural-Urban Gaps: Sex ratio (928 vs India’s 943), female literacy (52.1% vs 64.6%), and rural literacy (61.4% vs urban 79.7%) reveal deep gaps invisible in PCI averages.
- Ignores Environmental Costs and Climatic Vulnerability: PCI does not account for groundwater depletion, desertification, or the structural handicaps of drought-prone western districts, even as the State draws around ₹4,408.38 crore under SDRF for disaster management.
- Misses Multidimensional Poverty: PCI overlooks deprivations in nutrition, housing, and cooking fuel — the very dimensions emphasised by NITI Aayog’s MPI and the SDG framework.
Thus, in a diverse State like Rajasthan, PCI must be read alongside HDI, MPI, SDG India Index (score improved from 60 in 2020-21 to 67 in 2023-24 – ‘Front-Runner’), and district-level data to obtain a truthful welfare picture aligned with the Viksit Rajasthan@2047 vision.
Rajasthan’s GSDP has grown robustly — from ₹11.96 lakh crore (2021-22) to ₹18.75 lakh crore (2025-26) at current prices, with growth rates of 17.46%, 12.80%, 12.85%, 11.77% and 10.24% over these five years.
GSDP Growth Trend – Rajasthan (Recent Years)
Rajasthan 2025-26 (AE):
- Current Prices: ₹18.75 lakh crore (growth 10.24%)
- Constant Prices: ₹9.82 lakh crore (growth 8.66%)
- Share in All-India GDP: 5.25% (7th Rank)
GFCF stands at 29.53% of GSDP, above the 25% benchmark, showing robust investment momentum. However, high aggregate growth has not been matched by proportionate improvement in inclusiveness across regions, genders, and social groups, as the following data shows.
Evidence Supporting the Statement
- Persistent PCI Gap: Despite ranking 7th in aggregate GSDP, PCI ₹2,02,349 is ~8% below national ₹2,19,575; PCI rank stuck in 20th–23rd range for three decades.
- Sharp Inter-District Disparities: GDDP gap ~12× — Jaipur ₹2,12,335 crore vs Jaisalmer ₹17,903 crore; top 5 districts alone = ~37% of GSDP.
- Agriculture-Employment Mismatch: Agriculture = ~25% of GSVA but employs 55%+ of workforce, trapping labour in low-productivity work.
- Rising Rural Inequality: Rural Gini rose 0.248 (2011-12) → 0.283 (2022-23) — against national decline 0.283 → 0.266.
- Nutrition Regression: Child wasting 19.8%, underweight 33.3% (NFHS-6); immunisation fell to 75% (national 87%); IMR 30/1000 vs national 24.
- Gender Paradox: Female LFPR rose 50.5% → 54.1%, but female unemployment worsened 3.2% → 4.5%; women’s governance representation limited.
- Renewable Energy Concentration: 85%+ solar/wind projects in just 4 districts (Barmer, Bikaner, Jaisalmer, Jodhpur).
Counter-Evidence: Where Growth Has Been Inclusive
- Poverty Reduction: MPI poverty 28.86% → 15.31% (2015-16 to 2019-21); 1.08 crore escaped poverty.
- Women’s Financial Inclusion: 88% women with bank accounts (NFHS-6), near national 89%.
- Institutional Deliveries: 94.1% (NFHS-6) vs national 90.6%.
- DBT Inclusion: ₹3.91 lakh crore transferred till Dec 2025 via Jan Aadhaar-linked DBT.
Critical Analysis
Rajasthan’s growth is partially inclusive but structurally uneven. High GSDP has coexisted with widening rural inequality, regional concentration, worsening female unemployment, and declining child nutrition, while structural transformation (labour shift, HDI, regional convergence) has not kept pace.
Way Forward
Target lagging districts via Aspirational Districts Programme; break agri-employment trap through RUDA, MSMEs, PM-MITRA; expand female employment via PMVBRY-type incentives; strengthen SHG-market linkages; diversify RE investments; and anchor measures in the Ten Sankalp for Inclusive Growth under Viksit Rajasthan@2047, prioritising GARIB, YUVA, ANNADATA, and NARI SHAKTI.
Conclusion
The statement is substantially valid — GSDP growth has not translated proportionately into inclusive outcomes. Overcoming regional imbalance, low-quality employment, gender gaps, and rural inequality requires a more equity-focused growth model to realise Sabka Saath, Sabka Vikas under Viksit Rajasthan@2047.
