For states in India, rapid economic growth is often hailed as one of the most critical markers of developmental progress. But does a rising gross state domestic product (GSDP) translate into equitable access to essential services like healthcare, education and justice? This has been asked without presenting suitable alternatives to the state-wise measurement of economic and developmental progress.

The Access (In)Equality Index Report (AEI) 2025 created by the Centre for New Economics Studies at O.P. Jindal University seeks to answer this by assessing inequality through the lens of access rather than just economic outcomes.

We discuss some critical insights with respect to a few states and observed divergences between achieved growth and distributive equity experienced by these identified states across pillars.

An observed divide between economic growth and social outcomes

One of the AEI’s stark revelations over the years has been that economic performance for states (if measured solely in terms of GSDP) does not always translate into better social outcomes. While some high-income states have successfully invested in public services, others lag, highlighting a disconnect between wealth creation and equitable service provision.

The index ranks states based on their ability to convert economic growth into social progress, uncovering significant disparities across India.

Front-runners: bridging state growth with development

Sikkim (0.62), Andhra Pradesh (0.62) and Kerala (0.58) emerge as top performers, demonstrating how targeted policies can bridge economic growth and social welfare. Sikkim, despite its small economy, excels in education and healthcare, emphasising that state capacity is more critical than GDP size.

Andhra Pradesh’s top ranking is attributed to strong governance in education and public welfare. Kerala, long known for its human development model, maintains its standing due to a robust public healthcare system and high literacy rates.

Some economic powerhouses fall short. Maharashtra (0.52) and Karnataka (0.52) highlight the urban-rural divide in service access.

Maharashtra, despite a GDP exceeding $400 billion, struggles with high out-of-pocket healthcare costs and disparities in education. Karnataka, home to India's IT sector, shows stark gaps between urban hubs and its rural heartland, reinforcing the reality that economic expansion alone does not ensure inclusive development.

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