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Top 10 Poorest States In India: India is a multicultural nation with states that differ greatly in terms of poverty, economic growth, and level of development. Due to things like a lack of industrialisation, unemployment and inadequate infrastructure, certain states have high rates of poverty, while others rank among the richest. A huge portion of the population in several states, particularly in eastern and central India, lives below the poverty line.

According to the Multidimensional Poverty Index or MPI (2019-21), Bihar is the poorest state in India, with the highest poverty rate due to low industrial growth and heavy dependence on agriculture. Poverty is a major problem in other states as well, including Madhya Pradesh, Uttar Pradesh, Chhattisgarh and Jharkhand. Their difficulties are exacerbated by limited access to education, healthcare, and work prospects.

List Of Top 10 Poorest States In India By Poverty Rate

Despite government initiatives and welfare programs, poverty persists in some states. However, these states have reduced their poverty a bit in a few years. These are India's top 10 poorest states by poverty rate, along with the causes of their financial difficulties.

 Rank  States  Headcount Ratio (2019-2021) Headcount Ratio (2015-19)  Per Capita GDP (2022-2023) 
  1.  Bihar   33.76%  51.89%  ₹59 Thousand
  2.  Jharkhand   28.81%  42.10%  ₹1 Lakh
  3.  Meghalaya   27.79%  32.54%  ₹1.36 Lakh
  4.  Uttar Pradesh   22.93%  37.76%  ₹96 thousand
  5.  Madhya Pradesh   20.63%  36.57%  ₹1.40 Lakh
  6.  Assam   19.35%  32.65%  ₹1.12 Lakh
  7.  Chhattisgarh   16.37%  29.90%  ₹1.33 Lakh
  8.  Odisha   15.68%  29.34%  ₹1.50 Lakh
  9. Nagaland    15.43%  25.16%  ₹1.45 Lakh
  10.  Rajasthan   15.31%  28.66%   ₹1.56 Lakh

Source: Multidimensional Poverty Index (MPI) by government official release

Top 10 poorest states in India by poverty rate and reasons behind their struggles

1. Bihar 

Bihar is the poorest state in India due to low industrialization, high population density, and a heavy reliance on agriculture. Frequent floods, poor infrastructure, and limited job opportunities contribute to its high poverty rate.  

2. Jharkhand 

Despite being rich in minerals, Jharkhand faces poverty due to poor governance, lack of industries, and underdeveloped infrastructure. Many tribal communities lack access to education and healthcare, worsening the situation.  

3. Meghalaya

This northeastern state struggles due to its hilly terrain, limited industrialization, and dependency on agriculture. Poor connectivity and lack of large-scale industries contribute to its economic challenges.  

4. Uttar Pradesh 

As India’s most populous state, UP faces poverty due to unemployment, slow industrial growth, and inadequate healthcare and education facilities. Rural areas, in particular, suffer from poor infrastructure.  

5. Madhya Pradesh 

MP’s economy is primarily based on agriculture, but frequent droughts and inadequate irrigation facilities make farmers vulnerable. Lack of industrial growth also limits job opportunities.  

6. Assam 

Despite its natural resources, Assam struggles with floods, poor infrastructure and a lack of industrialization. Many rural areas suffer from underdevelopment, leading to high poverty rates.  

7. Chhattisgarh 

Chhattisgarh is rich in minerals, but many of its tribal communities live in poverty due to underdeveloped industries and conflicts in naxal-affected regions, limiting economic progress.  

8. Odisha

Though Odisha has industries and natural resources, its rural areas remain underdeveloped. Frequent cyclones, unemployment and lack of proper healthcare contribute to poverty.  

9. Nagaland 

This northeastern state faces poverty due to its remote location, lack of industrial development and limited employment opportunities outside agriculture. Poor connectivity further affects growth.  

10. Rajasthan 

Rajasthan has a large desert region, making agriculture difficult. Water scarcity, slow industrialization, and inadequate education and healthcare facilities contribute to its economic struggles.  

 

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