India is witnessing faster convergence in welfare indicators than in income levels across states, Reserve Bank of India (RBI) deputy governor Poonam Gupta said in a speech shared on LinkedIn, arguing that living standards across the country are becoming more equal even as richer states continue to grow faster economically.

In her speech titled Prosperous States for a Prosperous India, delivered at the Columbia Indian Economy Summit 2026 at Columbia University on April 11, Gupta said the pace of income divergence among states has weakened over time, while convergence in welfare and development indicators has become more pronounced.

Welfare convergence gaining pace

“Convergence has been faster and more decisive across a wide set of welfare and development indicators: per capita consumption expenditure, literacy, nutrition, access to basic services, financial inclusion, and a range of health and gender outcomes,” Gupta said.

She added that “lagging states are catching up, and the distribution of wellbeing across India is becoming more equal.”

The RBI deputy governor highlighted improvements in indicators such as women’s literacy, infant survival rates, access to sanitation, electricity, drinking water and banking services.

According to the speech, the proportion of women with bank or savings accounts rose to around 80% during 2019-21 from 14% in 2005-06, while the percentage of children who are not underweight also improved steadily over the years.

Gupta said sustained policy interventions, improving incomes in poorer states and saturation levels in richer states had contributed to the narrowing gap in welfare outcomes.

Income divergence still persists

At the same time, Gupta acknowledged that richer states have continued to outperform poorer states in terms of income growth.

“The fact that richer states have experienced greater prosperity than the poorer states in the past, and that this trend has not reversed, implies that income levels across states have not been converging,” she said.

However, she noted that the extent of divergence has moderated over successive decades, aided by stronger performances from lower-income states such as Odisha, Assam and Uttar Pradesh.

The speech noted that states above median income levels recorded average annual real GSDP growth of 7.7% between 2003-04 and 2024-25, compared with 6.8% for below-median states.

India’s 2047 outlook

Gupta said India’s long-term growth trajectory remained strong and broad-based, adding that many states could approach high-income thresholds by 2047 if current trends continue.

“The central question is no longer whether India will prosper, but how quickly, how broadly, and how equitably that prosperity would be shared across its states and its people,” she said.