Top 10 Best Economic States In India By GDP
- In 29 states, the top 5 states alone contribute more than 46% to the economy of India.
- Maharashtra is the leading state, followed by Tamil Nadu, Uttar Pradesh, and Gujarat.
Since gaining independence in 1947, India has come a long way. Today, India is the 6th largest economy in the world, and there is no looking back. In 1991, when India’s forex reserve went below $1.2 billion, it was just a few weeks away from defaulting on its external debt.
At that time, India secured an emergency loan of $2.2 billion by pledging 67 tonnes of its gold reserves. Today, India’s forex reserve is at more than $500 billion, which shows how much we’ve progressed in the last 75 years. So here are the top 10 states in India that contribute the most to the economy.
Maharashtra (GDP – $430.62 billion)
The leading state here is Maharashtra, with a GDP of $430.62 billion in 2021–2022. Mumbai is the financial capital of India, and it is home to several global banking and financial service providers. After Mumbai, Pune is another major city in the state. In FY2022, Maharashtra’s total exports stood at $65.96 billion.
It is India’s most industrialised state and also the country’s largest producer of sugarcane. This state contributes 15% to India’s GDP and accounts for more than 35% of India’s automobile industry output. In the top 10 states in India, Maharashtra has been leading the way for a long time.
Tamil Nadu (GDP – $320.27 billion)
At second spot, Tamil Nadu stands with a GDP of $320.27 billion in 2022–2023. In terms of the number of factories and industrial workers, it is ranked first among the states. In FY22, Tamil Nadu’s total merchandise exports stood at $31.52 billion.
This state attracts investment in auto components, electronics, IT services, footwear, etc. Chennai city here is also known as “Detroit of India” due to the manufacturing facilities of several automakers like Ford, Hyundai, Royal Enfield, etc.
Uttar Pradesh (GDP – $295 billion)
India’s most populous state, Uttar Pradesh, grabs the third spot here with a GDP of $294.90 billion in 2021-2022. This state is a favourite tourist destination in India due to the presence of the Taj Mahal. The state records more than 100 million tourists annually.
Uttar Pradesh is the largest producer of food grains like wheat, barley, maize, gram, and peas in India. It is also the largest producer of vegetables. In FY22, Uttar Pradesh merchandise exports stood at $18.83 billion, up from $16.39 billion in FY21.
Gujarat (GDP – $288.73 billion)
At $288.73 billion in FY23, Gujarat’s GDP was the 4th largest among states. This state is the largest producer of processed diamonds. 72% of the world’s processed diamonds belong to this state, as do 80% of India’s diamond exports. Surat city in the state is home to this, and so it is also known as the “Diamond City of India.”
Gujarat also has a large petroleum refining capacity, and Jamnagar Refinery is India’s largest refinery and is owned by Reliance Industries. This state is the largest producer of denim in the country, accounting for 65 to 70% of total production. In FY22, Gujarat’s total exports stood at $101 million. Sanand City here is home to manufacturing plants for Tata Motors, Ford, Hitachi, etc.
Karanataka (GDP – $243.56 billion)
Karanataka grabs the 5th spot in terms of GDP with $243.56 billion in 2022–2023. Bangalore is the most important city in this state, with more than 4,000 active startups and 400+ R&D centres.
Global IT giants Wipro and Infosys have headquarters here. Due to its IT (information technology) advancement, it is also known as the “Silicon Valley of India.” This city’s nickname also includes “Science City of India” and “Garden City.” In FY22, the state’s total exports stood at $22.83 billion.
West Bengal (GDP – $221.39 billion)
At the 6th spot, West Bengal sits with a GDP of $221.39 billion in FY 2022–2023. In FY22, total exports for the state stood at $12.59 billion. This state exports iron, steel, and marine products.
West Bengal also accounts for 50% of India’s leather exports. It is the largest producer of rice and fish in India. In terms of tea production, West Bengal ranks second in India only after Assam. The Darjeeling tea variety of this state is globally acclaimed.
Rajasthan (GDP – $174.51 billion)
Rajasthan is in the 7th spot with a GDP of $174.51 billion in 2022–2023. This state is the largest producer of crude oil in India. This state is one of the leading tourist destinations in India. Places like Jaipur and Udaipur attract a lot of domestic as well as foreign tourists.
In FY22, the total export of the state stood at $625.32 million, contributed by plywood and allied products. Rajasthan is also the largest mineral-producing state in India. India’s largest state in terms of area is also home to marble, sandstone, and granite production.
Telangana (GDP – $167.82 billion)
For 2022–2023, Telangana’s GDP stood at the 8th spot with $167.82 billion. In the data centre space, Hyderabad is becoming a hotspot in the state.
IT and ITeS exports from the state were valued at $20.05 billion. Leading companies like Amazon, Facebook, Google, and Microsoft hold a significant presence in Hyderabad.
Andhra Pradesh (GDP – $157.36 billion)
For 2021–2022, Andhra Pradesh’s GDP stood at $157.36 billion and took the 9th position. It is the 8th largest state in the country, and Visakhapatnam Port ranks fourth in terms of port traffic in India. It is one of the major producers of India’s tobacco products.
Madhya Pradesh (GDP – $150.74 billion)
For 2022–2023, Madhya Pradesh’s GDP stood at $150.74 billion. It is among the fastest-growing states in the country. In FY22, exports from the state stood at $800 million.
This state is rich in natural resources. Agriculture is one of the main sources of livelihood, and textiles are one of the key sectors in the state. This state is the largest producer of manganese ore and accounts for more than 30% of India’s total production.
So these were the top 10 states in India that contribute the most to the country’s economy.
