Highest GDP State in India 2024: India's Thriving Largest Economy

India, celebrated for its rich cultural diversity and varied landscapes, also presents a complex economic structure across its states. As of 2024, Maharashtra stands out as the highest GDP state in India, making it India’s largest economy. Other significant contributors to the nation’s GDP include Tamil Nadu and Uttar Pradesh, reflecting their economic strength and importance in driving India’s growth. On the other hand, states like Bihar and Jharkhand have lower GDP estimates, highlighting the economic disparities within the country.

In recent years, India’s economic growth has gained momentum, and 2023 marked a significant period for this development. India’s GDP grew by 6.1 percent in the last quarter of the 2022-2023 fiscal year, contributing to an overall annual growth rate of 7.2 percent. This rapid expansion highlights India’s emergence as a rising economic superpower.

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GDP of India

1. Economic Growth: According to the first advance estimates by the National Statistical Office (NSO), the Indian economy is projected to grow by 7% in the fiscal year 2023-24. This growth rate is slightly lower than the 7.2% recorded in the previous year. The positive performance is attributed to strong showings in sectors such as mining, quarrying, manufacturing, and specific segments of services.
2. Real GDP: The Real GDP (measured at constant 2011-12 prices) for the year 2023-24 is estimated to reach Rs 171.04 lakh crore, compared to the provisional GDP estimate of Rs 160.06 lakh crore for 2022-23. These figures indicate a steady increase in economic output.
3. Nominal GDP: The Nominal GDP (measured at current prices) in 2023-24 is projected to be Rs 301.75 lakh crore, surpassing the provisional estimate of Rs 272.41 lakh crore for 2022-23.
4. Gross Value Added (GVA): The growth in Gross Value Added (GVA) at basic prices is expected to be 6.5% during this fiscal year, slightly lower than the 7% recorded in 2022-23.

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Maharashtra: Highest GDP State in India

The Highest GDP State in India is Maharashtra. Mumbai, the capital of Maharashtra and the financial and commercial hub of India, is the main contributor. The state serves as a significant hub for several industries, including information technology, manufacturing, Bollywood (the Indian film industry), and finance.

It is also India’s financial hub and is a prominent hub for trade, business, and industry. Maharashtra is a major agricultural state that yields large quantities of food grains, fruits, and vegetables. It contributes significantly to India’s economy.

Maharashtra also provides a substantial amount of revenue to the central government. In 2022–2023, the state’s tax revenue made up 12.3% of the total amount of taxes collected by the federal government. Maharashtra has a diversified economy, a high GDP, and a favorable business environment. The state is the federal government’s primary source of income and a major contributor to the Indian economy.

Bihar: Lowest GDP State in India

Bihar is among the states with the lowest GDP contribution in India, accounting for approximately 3.1% of the nation’s total GDP. The state faces challenges such as poverty, unemployment, and underdeveloped infrastructure, which have impeded its economic progress. A significant portion of Bihar’s population relies on agriculture, heavily dependent on the monsoon for irrigation.

To foster economic growth, the Bihar state government has initiated various measures, including efforts to attract investments, enhance infrastructure, and stimulate entrepreneurship. Despite these hurdles, Bihar has demonstrated some improvements in recent years, particularly with increased investment in sectors such as manufacturing, tourism, and renewable energy.

Highest GDP State in India: What Is Per Capita Income?

The Per Capita Income of Indian states assesses how much each resident makes in a particular state. It represents the typical income of a person in a nation, a state, or a particular region. This aids in our assessment of the living conditions and overall standard of living of the residents. 

While GDP measures a nation’s overall economy and offers valuable insights into living standards across different countries, Per Capita Income holds greater significance when comparing nations in this context. GDP only accounts for the total value added produced within a country. Per Capita Income of India includes the population and its capacity to share wealth, making it a good indicator of economic development.

Highest GDP State in India: The Richest State in India

With a Gross State Domestic Product (GSDP) surpassing $400 billion, Maharashtra stands as India’s wealthiest state. Its economic strength is rooted in dynamic agricultural and industrial sectors.

Mumbai, the state capital and India’s largest metropolis, serves as a hub for trade and finance, hosting major stock exchanges and financial institutions. Maharashtra excels in industries like automobiles, textiles, and engineering. Additionally, its agricultural output—focused on crops like cotton, soybeans, and sugarcane—contributes significantly to the nation’s economy. Overall, Maharashtra’s diverse economic landscape solidifies its position as a key driver of India’s growth and development.

Highest GDP State in India: Indian States Ranked by GDP Per Capita

The GDP per capita income for Indian states is calculated yearly, and the results are made available to the public. This measurement of Indian states by GDP per capita income determines the standard of living. The higher the per capita income value, the higher the living standards in the state will be.

The higher the per capita pay esteem, the higher the expectations for everyday comforts in the state will be.

State/Union Territory	GSDP (₹ millions)	GSDP (US$ billions)
Maharashtra	38,79,000	417.2
Tamil Nadu	28,30,000	278.0
Gujarat	25,62,000	265.4
Karnataka	25,00,000	263.5
Uttar Pradesh	24,39,000	265.1
West Bengal	17,19,000	183.1
Rajasthan	15,70,000	163.5
Andhra Pradesh	14,49,000	152.2
Telangana	14,00,000	151.5
Madhya Pradesh	13,87,000	152.5
Kerala	11,30,000	125.2
Haryana	11,20,000	116.9
Delhi	10,40,000	121.4
Odisha	8,65,000	90.1
Bihar	8,59,000	87.3
Punjab	6,98,000	82.4
Assam	5,67,000	55.4
Chhattisgarh	5,07,000	54.6
Jharkhand	4,23,000	48.1
Uttarakhand	3,33,000	36.5
Jammu & Kashmir (UT)	2,30,000	26.8
Himachal Pradesh	2,14,000	23.7
Goa	1,00,000	11.1
Andaman & Nicobar Islands	89,000	2.29
Chandigarh	49,000	3.33
Meghalaya	46,000	0.98
Manipur	45,000	0.91
Sikkim	42,000	5.19
Puducherry	39,000	2.22

Highest GDP State in India: Indicators of Richest State in India

1. Gross State Domestic Product (GSDP): GSDP measures the total value of goods and services produced within a state during a specific period. It serves as an essential indicator to assess the overall economic output and growth of a state.
2. Per Capita Income: Per Capita Income represents the average income earned per person in a state. It provides insights into the standard of living and economic prosperity of the population. Higher per capita income generally indicates greater wealth and economic development.
3. Human Development Index (HDI): HDI combines indicators such as life expectancy, education, and per capita income to measure the overall well-being and development of a state. It offers a comprehensive picture of the state’s wealth and quality of life.
4. Poverty and Inequality Measures: Indicators like the poverty rate, poverty headcount ratio, and Gini coefficient help assess the level of poverty and income inequality within a state. Lower poverty rates and reduced income disparities indicate a more equitable distribution of wealth.
5. Infrastructure Development: The quality and availability of infrastructure, including transportation networks, power supply, healthcare facilities, and educational institutions, reflect the level of development and wealth in a state.
6. Employment and Unemployment Rates: These rates indicate the level of economic activity and job opportunities within a state. Lower unemployment rates generally correlate with higher wealth and economic stability.
7. Financial Inclusion: The extent of financial inclusion, including access to banking services, credit facilities, and insurance, can reflect the economic well-being of individuals and businesses in a state.
8. Industrial and Agricultural Output: The contribution of industries and agriculture to the state’s economy provides insights into its wealth. States with a diverse industrial base and a robust agricultural sector tend to have higher wealth.

Top 10 Highest GDP State in India

Maharashtra

Maharashtra tops the list as India’s richest state with a Gross State Domestic Product (GSDP) exceeding $400 billion. It is renowned for Mumbai, the financial capital of India, and housing institutions like the Bombay Stock Exchange. Maharashtra’s economy thrives on robust agricultural sectors producing cotton, soybeans, and sugarcane, alongside flourishing industries in automobiles, textiles, and engineering. The state’s port in Mumbai handles a significant portion of India’s international trade, further enhancing its economic stature. Maharashtra’s industrial prowess spans sectors such as chemicals, pharmaceuticals, and textiles, contributing significantly to its GDP. Its agricultural sector, specializing in sugarcane, cotton, and soybeans, plays a pivotal role in sustaining economic growth.

Tamil Nadu

Tamil Nadu, with a Gross State Domestic Product (GSDP) surpassing $300 billion, is India’s second-richest state. The state is renowned for its capital, Chennai, which is a major center for automobile manufacturing and IT industries. Tamil Nadu has a diverse economy, leading in textiles, particularly silk and cotton, and agriculture, with significant production of rice and sugarcane. The state’s focus on IT and software development has strengthened its economic position, making it a crucial contributor to India’s economic growth. With its varied industrial base and ongoing development, Tamil Nadu plays a vital role in the country’s overall economic success.

Gujarat

Gujarat emerges as one of India’s wealthiest states with a GSDP surpassing $150 billion. Its robust industrial base includes textiles, chemicals, and petrochemicals, supported by well-developed infrastructure including ports like Kandla and Mundra. Gujarat’s agricultural sector benefits from fertile soil, producing cotton, groundnuts, and sugarcane. The state’s proactive policies for entrepreneurship and industrial growth further strengthen its economic position.

Karnataka

With a Gross State Domestic Product (GSDP) exceeding $150 billion, Karnataka ranks among India’s wealthiest states. The state has a diversified economy, excelling in IT, biotechnology, and aerospace industries. Its capital, Bangalore, is a key IT hub, home to many IT and software development companies. Karnataka also has a strong agricultural sector, particularly in sugarcane and various crops, which complements its industrial strengths. The state’s robust infrastructure, including well-developed ports and airports, supports its economic activities and growth. Karnataka’s combination of advanced industries and solid infrastructure contributes significantly to its position as a leading economic player in India.

Uttar Pradesh

Uttar Pradesh’s diverse economy and strategic location make it one of India’s wealthiest states. The state is well-known for its strong agricultural sector, producing a variety of food grains and sugarcane, and excelling in dairy and horticulture. Its manufacturing and service industries are growing, thanks to supportive infrastructure and policy initiatives designed to promote industrial development. Additionally, tourism plays a significant role in boosting the state’s economy, with famous attractions like the Taj Mahal drawing visitors from around the world. Uttar Pradesh’s combination of agricultural success, expanding industries, and tourism makes it a major economic player in India.

Andhra Pradesh

Andhra Pradesh is one of India’s wealthiest states, with a Gross State Domestic Product (GSDP) exceeding $150 billion. The state has a robust industrial base, including textiles, pharmaceuticals, and agriculture-based sectors such as aquaculture and horticulture. Its IT sector, bolstered by IT parks and Special Economic Zones (SEZs), plays a significant role in economic growth. Major ports like Visakhapatnam and Kakinada boost trade and enhance the state’s attractiveness for business and investment. Andhra Pradesh’s diverse industries, strong IT sector, and strategic ports contribute to its status as a leading economic hub in India.

Telangana

Telangana has recently emerged as one of India’s wealthiest states due to its strong economic growth. The state boasts a diverse economy with significant contributions from agriculture, as well as industries like pharmaceuticals and textiles. Hyderabad, the capital, is a major IT hub, driving economic activity with its vibrant IT and software industry. Telangana’s growing services sector also adds to its economic strength. Additionally, the state’s rich cultural heritage and tourism industry play a key role in its prosperity. Overall, Telangana’s mix of agriculture, industry, IT, and tourism helps maintain its position as a leading economic force in India.

West Bengal

West Bengal’s strong economic growth has earned it a place among India’s wealthiest states. The state is well-known for its agriculture, particularly in the cultivation of potatoes and jute. West Bengal also excels in industries such as engineering, chemicals, and textiles. The services sector, including banking and healthcare, is growing quickly. Additionally, cultural tourism plays a significant role in the state’s economy, with attractions like the Victoria Memorial drawing many visitors. This combination of agricultural success, industrial strength, expanding services, and tourism helps West Bengal maintain its position as a key economic player in India.

Rajasthan

Rajasthan has a diverse economy supported by agriculture, tourism, and services. The state is known for its agricultural products, such as wheat and mustard, and has a flourishing mineral industry. Rajasthan’s rich cultural heritage draws tourists to famous sites like the Ajmer Sharif Dargah and Jantar Mantar, which boosts the local economy. Additionally, the state’s strategic location and well-developed infrastructure facilitate trade and commerce, contributing to further economic growth. This combination of strong agricultural output, thriving tourism, and effective trade support helps Rajasthan maintain its position as a significant economic player in India.

Madhya Pradesh

Madhya Pradesh is one of India’s wealthiest states, thanks to its abundant natural resources. The state’s economy is fueled by agriculture, a rich supply of minerals, and a growing industrial sector that includes chemicals and cement. Its cultural heritage also plays a significant role, with UNESCO-listed sites like the Khajuraho Temples drawing tourists and boosting the local economy. Additionally, the state benefits from strategic transport networks and ongoing infrastructure development, which support economic growth. This blend of natural resources, industrial progress, tourism, and infrastructure improvements helps Madhya Pradesh maintain its strong economic position in India.

These states not only contribute significantly to India’s GDP but also exemplify diverse economic strengths across agriculture, industry, and services, driving overall economic growth and development in the country.

Highest GDP State in India: India’s GDP in Billion Dollars

After having 2 years of unstable monetary development in 2021 and 2022, the condition of the Indian economy has kept areas of strength for showing development during the main portion of 2023. With extended local interest, the economy should fill quickly in 2023 and 2024. 

From USD 3.5 trillion in 2022 to USD 7.3 trillion in 2030, India’s GDP in billion bucks is expected to increase. In light of its quick monetary turn of events, India should ascend as the second-greatest economy in the Asia-Pacific area by 2030, outflanking Germany and Japan’s Total national output. In 2022, India’s billion-dollar Gross domestic product had proactively outperformed the UK’s.

Highest GDP State in India: Top 10 Developed States in India

Unlike the highest GDP state in India, determining which state is the most developed in India involves assessing various factors such as economic growth, Human Development Index (HDI), infrastructure, healthcare, education, and overall quality of life. Development is multidimensional, and different states excel in different aspects. However, based on a combination of these criteria, certain states consistently rank high in development indices:

• Kerala: Often highlighted for its elevated Human Development Index (HDI), Kerala excels in healthcare, education, and quality of life indicators. It boasts the highest literacy rate and life expectancy in India.
• Maharashtra: Serving as India’s economic powerhouse with Mumbai as its capital, Maharashtra significantly contributes to the national GDP. It possesses a robust industrial base and is a major financial center.
• Tamil Nadu: Known for its diverse economy, Tamil Nadu leads in sectors like automobile manufacturing and IT services. The state is also noted for its well-developed infrastructure and educational institutions.
• Karnataka: Home to Bangalore, the IT hub of India, Karnataka thrives in the technology sector with a strong focus on innovation and research & development.
• Gujarat: Acknowledged for its conducive business environment, Gujarat features a vibrant industrial sector contributing notably to manufacturing, agriculture, and trade.
• Delhi: Despite being a union territory, Delhi stands out due to its high GDP per capita, modern infrastructure, and robust facilities in healthcare and education, serving as the national capital.

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Highest GDP State in India: Top 10 Powerful States in India

Determining the “influence” of Indian states is subjective and hinges on the criteria employed for assessment. Factors like economic prowess, population demographics, political sway, cultural importance, and developmental benchmarks collectively shape the perceived influence of a state.

Based on these factors, here are ten states often recognized for their influence in India, though the list is not exhaustive and can vary depending on the criteria:

1. Maharashtra: Renowned for its economic strength, Maharashtra houses Mumbai, India’s financial capital, making a substantial contribution to the national GDP.
2. Uttar Pradesh: With India’s largest population, Uttar Pradesh wields significant political influence, playing a pivotal role in national elections and policymaking.
3. Tamil Nadu: A robust economy driven by industries such as automobiles, manufacturing, and IT services distinguishes Tamil Nadu as an economic leader.
4. Karnataka: Home to Bengaluru, India’s technology hub, Karnataka is pivotal in the fields of information technology and biotechnology.
5. Gujarat: Known for its pro-business environment, Gujarat boasts a thriving industrial sector that significantly bolsters India’s economy.
6. West Bengal: With strong cultural and historical significance, West Bengal influences areas like arts, literature, and politics.
7. Telangana: A rapidly growing state, particularly in IT, biotechnology, and pharmaceuticals, centered around Hyderabad, its capital.
8. Delhi: Despite being a union territory, Delhi holds substantial power as India’s national capital and a major hub for commerce, politics, and culture.
9. Rajasthan: Known for its rich cultural heritage and expanding sectors like tourism and solar energy, Rajasthan exerts influence in various domains.
10. Punjab: Renowned for its agricultural productivity and global diaspora, Punjab maintains strong international connections and influence.

Highest GDP State in India: The State of the Indian Economy

The condition of the Indian economy is enormous and complex, and it faces numerous valuable open doors and difficulties as it takes a stab at development and improvement. The country has carried out a few changes to resolve specific issues. However, it likewise faces various monetary difficulties. For example,

• Weak Demand: Due to several factors in India, including low-pay development, high expansion, joblessness, and the impacts of the Coronavirus pandemic, the interest in labor and products has deteriorated or even diminished.
• Unemployment: Many businesses have closed or scaled back their operations due to the COVID-19 pandemic.
• Poor Infrastructure: India’s infrastructure hinders its power to compete. According to the World Bank, India’s infrastructure gap is worth $840 billion.
• Balance Of Payment Deterioration: India has a long-standing current account deficit. Thus its imports are greater than its exports. India’s exports and imports fell by 7.53 and 7.98 percent.
• Financial Instability: According to The Economic Times, the total non-financial sector debt stood at Rs 371 lakh crore in the September 2021 quarter.

Highest GDP State in India: UPSC Syllabus

Understanding the GDP of Indian states is pertinent in the UPSC Syllabus, serving as a pivotal gauge of a state’s economic progress. The exam often features inquiries regarding the GDP contributions of different Indian states, their impact on the national GDP, and their comparative economic trends over time. Candidates are required to demonstrate a comprehensive grasp of factors influencing economic development, including infrastructure, natural resources, human capital, and governmental policies. Familiarity with regional economic inequalities and the measures undertaken by the government to address them is also crucial.

Highest GDP State in India: Conclusion

Positive economic growth in a country is defined as an increase in the money supply, economic output, and productivity. When an economy’s growth rate is negative, its money supply generally contracts and wage growth slows. Better income levels, more work options, and higher levels of education reflect the condition of Indian economic growth. The economic expansion in the states is primarily due to various factors. The richness of the Indian states with the greatest GDPs might indicate their economies’ strength.

Even in wealthy states, there can be differences in how people receive services based on their income. While a strong economy offers opportunities for growth and development, it’s important to address these inequalities. To improve living standards for everyone, we need to take steps to reduce these disparities. This includes implementing policies and programs that ensure equitable access to services and resources. By focusing on reducing income-based differences, we can create a more inclusive society where all individuals benefit from economic progress and have a better quality of life.

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