India’s economy is growing rapidly, and understanding the GDP of Indian States gives us a clear picture of where the country’s wealth is concentrated. So, which states lead the charge in economic output? In 2024, Maharashtra, Tamil Nadu, and Karnataka top the list with significant contributions to India’s national GDP. But why are these states thriving? It’s all about the industries that drive their economies. In this blog, we’ll explore the top 10 states by GDP, shedding light on the key sectors that fuel their success and examining what makes these states economic powerhouses.
Here are the top 10 GDP of Indian states
| Rank | State | Projected GSDP (in INR, lakh crore; FY 2024-25) | State share of national GDP (%) |
| 1 | Maharashtra | 42.67 | 13.30% |
| 2 | Tamil Nadu | 31.55 | 8.90% |
| 3 | Karnataka | 28.09 | 8.20% |
| 4 | Gujarat | 27.9 | 8.10% |
| 5 | Uttar Pradesh | 24.99 | 8.40% |
| 6 | West Bengal | 18.8 | 5.60% |
| 7 | Rajasthan | 17.8 | 5% |
| 8 | Telangana | 16.5 | 4.90% |
| 9 | Andhra Pradesh | 15.89 | 4.70% |
| 10 | Madhya Pradesh | 15.22 | 4.50% |
1. Maharashtra
- Key Industries: IT, Manufacturing and Creative Industries
Maharashtra leads the GDP of Indian States with rapid industrial growth. About 46% of its Gross State Domestic Product (GSDP) comes from industries like IT and manufacturing.
By 2024-25, Maharashtra’s GSDP is projected to hit ₹42.67 trillion (US$510 billion) with a growth rate of 10%. This surge is driven by the Maharashtra Industrial Development Corporation (MIDC), which builds industrial clusters and economic zones.
The state’s top educational institutes also produce a skilled workforce, helping sustain IT and manufacturing growth. With better infrastructure and constant investments, Maharashtra’s industrial sector is set to boom.
2. Tamil Nadu
- Key Industries: Automobile and Auto Components, Textiles and Pharmaceuticals
Tamil Nadu’s growth in the GDP of Indian States is driven by manufacturing. The state’s manufacturing sector aims for 15% annual growth by 2025.
With a projected GSDP of ₹10 lakh crore (US$137.8 billion) in investments, Tamil Nadu plans to create 20 lakh jobs. The Tamil Nadu Urban Flagship Investment Programme supports infrastructure development, making it a preferred destination for global investors.
The state’s pharmaceutical industry is also growing fast, thanks to dedicated industrial parks and pro-business policies. This creates more opportunities for jobs and economic growth.
3. Karnataka
- Key Industries: IT, Aerospace and Defense, and Biotech
Karnataka’s economy is booming, making it a leader in the GDP of Indian States. The GSDP for 2024-25 is expected to reach ₹28.09 lakh crore (US$340 billion), with a 17.7% growth rate.
The IT sector is a major contributor, with consistent Foreign Direct Investment (FDI) inflows of US$44.46 billion from 2019 to 2023. Karnataka’s business-friendly environment attracts top global firms.
With plans to create over 2 million jobs in the service and manufacturing sectors by 2025, Karnataka’s growth story is only getting stronger.
4. Gujarat
- Key Industries: Chemicals and Petrochemicals, Textiles and Pharmaceuticals
Gujarat’s industrial power ranks it high in the GDP of Indian States. The GSDP for 2024-25 is expected to reach ₹27.9 lakh crore (US$334 billion).
About 30% of India’s chemical manufacturing takes place in Gujarat. Strong infrastructure and favorable policies bring in large investments, estimated at ₹10 lakh crore by 2025.
The petrochemical sector also plays a key role. With 30% of India’s total petrochemical production, Gujarat’s industrial influence continues to expand.
5. Uttar Pradesh
- Key Industries: Agriculture, Textiles and IT
Uttar Pradesh is rapidly growing, securing a key spot in the GDP of Indian States. The GSDP is projected at ₹32 lakh crore (US$395 billion) by March 2025.
Infrastructure projects like expressways and logistics hubs enhance connectivity, driving industrial growth. The government’s “One District One Product” policy boosts local crafts and exports.
With IT growing at a CAGR of 30%, Uttar Pradesh’s employment landscape is set to expand, creating more jobs for the youth.
6. West Bengal
- Key Industries: Agriculture, Manufacturing, and IT
West Bengal’s economic growth is noteworthy in the GDP of Indian States. The projected GSDP for 2024-25 is ₹18.8 lakh crore (US$230 billion).
The state’s service sector contributes 54% of its total Gross Value Added (GVA). The IT sector is growing fast, with over 1,000 software firms employing 2.6 lakh people.
The Bengal Global Business Summit (BGBS) in early 2025 aims to attract more investment in IT and manufacturing, fueling further economic growth.
7. Rajasthan
- Key Industries: Cement, Mining and Tourism
Rajasthan’s economic ambitions place it high in the GDP of Indian States. The state aims for a GSDP of ₹350 billion by 2025, with over 12% annual growth.
Major investments worth ₹5 lakh crore are coming from investment summits. The Rajasthan Investment Portal makes it easier for businesses to set up operations.
Rajasthan’s mineral wealth and focus on solar and renewable energy position it as a future-ready economy with a strong potential for growth.
8. Telangana
- Key Industries: IT, Pharmaceuticals and Biotechnology and Aerospace and Defense
Telangana’s rapid development secures its place in the GDP of Indian States. The GSDP is expected to reach ₹14 lakh crore (US$169.59 billion) by 2023-24, with an 11.10% CAGR.
The IT sector’s exports hit ₹145,522 crore (US$20.05 billion) in 2021-2022, and growth is expected to continue. Telangana’s initiatives for manufacturing parks and emerging tech industries like AI and semiconductors pave the way for future growth.
The state’s pro-business policies and support for innovation make it an attractive destination for global investors.
9. Andhra Pradesh
- Key Industries: Agriculture, IT and Pharmaceuticals
Andhra Pradesh’s progress makes it a strong contender in the GDP of Indian States. The GSDP is projected to reach ₹15.40 lakh crore (US$185 billion) in 2023-24, with a 16.22% growth rate.
At the Global Investors Summit, investments worth ₹13.11 lakh crore were secured, aimed at creating 6 lakh jobs. The government’s focus on port development strengthens Andhra Pradesh’s trade capabilities.
New ports and improved logistics will increase exports, opening more opportunities for industrial growth in the state.
10. Madhya Pradesh
- Key Industries: Textiles, Automobiles and Food Processing
Madhya Pradesh’s strong push for growth puts it high in the GDP of Indian States. The GSDP is expected to hit ₹13.87 lakh crore (US$166 billion) in 2023-24.
With “2025: The Year of Industry” as a key initiative, Madhya Pradesh plans to engage stakeholders to boost investments. Infrastructure development is a top priority, leading to the establishment of new industrial units.
These efforts aim to generate more jobs and stimulate the local economy, making Madhya Pradesh a rising star in India’s economic landscape.
Conclusion
In conclusion, the GDP of Indian States highlights the economic strength of key regions driving India’s growth. Maharashtra, Tamil Nadu, and Karnataka lead the pack, showcasing the power of diverse industries such as IT, manufacturing, and agriculture. As these states continue to thrive, their economic development sets the stage for India’s future prosperity. Understanding these economic dynamics helps us recognize the vital role these states play in shaping the nation’s overall progress and growth trajectory.
FAQs
- Which is the poorest state in India?
Bihar is often considered the poorest state in India due to its low economic growth and development.
- Which is the richest city in India?
Mumbai is the richest city in India. It’s home to many large businesses, industries, and the country’s financial hub.
- Which is the No. 1 developed state in India?
Maharashtra is the most developed state in India. It has the highest Gross State Domestic Product (GSDP) at ₹42.67 lakh crore.
- Which is the costliest city in India?
In 2024, Mumbai is the costliest city in India. It has the highest living expenses, including housing, transport, and daily costs.
Also Read: Top 10 Most Educated States in India: Unveiling Their Success Stories
