Sharp state-wise wage gaps persist, underscoring uneven regional labour market outcomes despite steady growth.
The Reserve Bank of India (RBI) on Wednesday released the 10th edition of the “Handbook of Statistics on Indian States, 2024-25”, a comprehensive statistical compendium presenting long-term sub-national economic data. The publication consolidates state-wise indicators across wages, output, prices, infrastructure, banking, fiscal position and socio-demographic variables, enabling systematic comparison of regional economic performance. One of the key labour market indicators—average daily wages of rural male construction workers—shows sustained nominal growth at the national level, alongside pronounced and persistent inter-state disparities, underscoring uneven development outcomes across India’s federal structure.
Facts Table 1: Scope of RBI Handbook 2024-25
| Coverage Area | Indicators Included |
|---|---|
| Labour | Wages, employment proxies |
| Economy | GSDP, sectoral output |
| Social | Demography, health |
| Prices | CPI, wage-linked prices |
| Finance | Banking, credit, state finances |
| Infrastructure | Power, roads, transport |
Table 2: State-wise Average Daily Rural Wage (₹) – Construction Workers (Men)
| State | 2014-15 | 2024-25 | Growth (%) |
|---|---|---|---|
| Andhra Pradesh | 237.5 | 553.9 | ~133 |
| Assam | 248.8 | 420.7 | ~69 |
| Bihar | 226.7 | 388.6 | ~71 |
| Gujarat | 230.9 | 355.3 | ~54 |
| Haryana | 357.1 | 534.9 | ~50 |
| Himachal Pradesh | 317.3 | 557.9 | ~76 |
| Jammu & Kashmir | 413.6 | 584.5 | ~41 |
| Karnataka | 286.2 | 484.8 | ~69 |
| Kerala | 787.9 | 922.6 | ~17 |
| Madhya Pradesh | 173.4 | 307.8 | ~77 |
| Maharashtra | 267.7 | 407.9 | ~52 |
| Manipur | 310.5 | 350.4 | ~13 |
| Meghalaya | 231.0 | 407.0 | ~76 |
| Odisha | 198.8 | 393.0 | ~98 |
| Punjab | 296.2 | 437.8 | ~48 |
| Rajasthan | 303.3 | 469.7 | ~55 |
| Tamil Nadu | 363.8 | 583.2 | ~60 |
| Tripura | 200.0 | 378.5 | ~89 |
| Uttar Pradesh | 216.1 | 389.9 | ~80 |
| West Bengal | 229.7 | 373.6 | ~63 |
| All-India | 275.0 | 441.1 | ~60 |
Source: RBI, Handbook of Statistics on Indian States, 2024-25
Key factual takeaways
- Highest wage (2024-25): Kerala (₹922.6/day)
- Lowest wage (2024-25): Madhya Pradesh (₹307.8/day)
- Fastest growth: Andhra Pradesh (~133%)
- All-India growth: ~60% over 10 years
- Wage gap (top vs bottom): ~3:1
All-India rural wage trend shows steady upward movement
RBI data shows that average daily wages for male construction workers in rural India increased from ₹275 in 2014-15 to ₹441.1 in 2024-25, registering a cumulative growth of about 60 per cent over ten years. The rise appears gradual and largely uninterrupted, reflecting sustained demand for construction labour driven by public infrastructure spending, rural housing programmes and urban spillover effects. While nominal wages have risen consistently, the data does not adjust for inflation, indicating that real wage gains may be lower when measured against rising rural living costs. Nonetheless, the trend points to structural strengthening of rural labour earnings over the decade.
Facts Table 3: All-India Rural Wage Growth
| Indicator | Value |
|---|---|
| Base Year Wage (2014-15) | ₹275 |
| Latest Wage (2024-25) | ₹441.1 |
| Absolute Increase | ₹166.1 |
| Decadal Growth | ~60% |
| Nature of Growth | Gradual, linear |
Table 4: All-India Average Daily Rural Wage Trend (₹)
| Year | Wage (₹) |
|---|---|
| 2014-15 | 275.0 |
| 2016-17 | 303.9 |
| 2018-19 | 328.7 |
| 2020-21 | 362.2 |
| 2022-23 | 393.3 |
| 2024-25 | 441.1 |
Growth chart: All-India rural construction wages (2014-15 to 2024-25)
₹
950 |
850 |
750 |
650 |
550 | █
450 | █ █
350 | █ █ █
250 | █ █ █ █
2015 2019 2025
Source: RBI Handbook of Statistics on Indian States, 2024-25
Southern and hill states dominate wage levels
The data shows that southern and hill states consistently report higher rural construction wages than the national average. Kerala remained the top-paying state, with wages reaching ₹922.6 per day in 2024-25, more than twice the all-India level. Tamil Nadu, Jammu & Kashmir and Himachal Pradesh also recorded wages exceeding ₹550 per day. These states benefit from higher labour productivity, stronger institutional wage enforcement, higher cost-of-living benchmarks and relatively lower labour supply pressure due to migration patterns.
Table 5: Highest Rural Construction Wages, 2024-25 (₹)
| State | Wage |
|---|---|
| Kerala | 922.6 |
| Jammu & Kashmir | 584.5 |
| Tamil Nadu | 583.2 |
| Himachal Pradesh | 557.9 |
| Haryana | 534.9 |
Lower-wage states record faster percentage growth
States with lower initial wage bases recorded relatively faster growth rates over the decade, indicating partial convergence. Andhra Pradesh posted the highest growth, with wages rising by over 130 per cent between 2014-15 and 2024-25. Uttar Pradesh, Bihar and Madhya Pradesh also saw growth ranging between 70 and 80 per cent. However, despite higher growth rates, absolute wage levels in these states remain below the national average, highlighting the difference between relative growth momentum and actual income outcomes.
Table 6: Wage Growth in Select Low-Base States
| State | 2014-15 (₹) | 2024-25 (₹) | Growth (%) |
|---|---|---|---|
| Andhra Pradesh | 237.5 | 553.9 | ~133 |
| Uttar Pradesh | 216.1 | 389.9 | ~80 |
| Bihar | 226.7 | 388.6 | ~71 |
| Madhya Pradesh | 173.4 | 307.8 | ~77 |
Wage dispersion remains structurally high
The RBI data highlights persistent wage dispersion across states. In 2024-25, the gap between the highest-paying state (Kerala at ₹922.6) and the lowest-paying state (Madhya Pradesh at ₹307.8) resulted in a wage ratio of nearly 3:1. This dispersion reflects long-standing differences in productivity, sectoral composition, infrastructure density, labour bargaining power and institutional capacity across states. The data suggests that national wage growth has not translated into uniform regional outcomes.
Facts Table 6: Wage Dispersion Snapshot (2024-25)
| Indicator | Value |
|---|---|
| Highest Wage State | Kerala (₹922.6) |
| Lowest Wage State | Madhya Pradesh (₹307.8) |
| Absolute Gap | ₹614.8 |
| Wage Ratio | ~3:1 |
Pandemic impact visible but temporary
The handbook notes that 2020-21 wage estimates are based on partial-year data due to the unavailability of wage observations during lockdown months. All-India data excludes April 2020, while state-level data excludes April and May 2020. This led to a temporary flattening of growth during the pandemic year. However, wages rebounded strongly in subsequent years, indicating recovery in construction activity, restoration of labour mobility and renewed investment momentum.
| Parameter | Impact |
|---|---|
| April 2020 Data | Not available (All-India) |
| April–May 2020 | Missing (State level) |
| Effect | Partial-year averages |
| Post-COVID Trend | Upward recovery |
Broader statistical coverage
Beyond labour wages, the RBI publication provides long-term state-wise data on state domestic product, agriculture, health indicators, prices, industry, infrastructure, banking penetration, fiscal balances and exports. RBI said the handbook supports evidence-based policymaking and regional economic analysis, enabling stakeholders to track structural changes and assess development gaps across Indian states.
Facts Table 8: Policy Utility of Handbook
| User Group | Application |
|---|---|
| Policymakers | Regional planning |
| Economists | Trend & disparity analysis |
| Researchers | Long-term datasets |
| Media | Data-driven reporting |
©ambedkarchamber.com
