India’s Economic Landscape
In 2019, India emerged as the world’s fifth-largest economy, surpassing the UK and marking its evolution from a colonized nation to a significant player in the global economy. Projections from S&P Global Market Intelligence indicate that India is set to become the third-largest economy by 2030-31, with its share of global GDP expected to rise from 3.6% to 4.5%, alongside an annual growth rate of 6.7%. The report also highlights that India is on track to achieve upper-middle-income status. This positive outlook emphasizes the critical role of its 28 states and 8 union territories in driving national growth. Let’s take a closer look at the 10 richest states in India, measured by GSDP and GDP per capita.
Understanding GDP and GSDP
- Gross Domestic Product (GDP) per capita reflects the economic output per person in a country.
- Gross State Domestic Product (GSDP) measures the total value of goods and services produced within a state over a specific timeframe.
1. Maharashtra
Maharashtra, India’s financial capital, ranks as the wealthiest state in terms of GDP per capita. Its GSDP for 2022-2023 was approximately ₹2.89 lakh crore, solidifying its position as the largest state economy.
2. Tamil Nadu
Tamil Nadu, located in the southernmost part of India, holds the second spot for GDP per capita. Its projected GSDP for FY 2024-25 is ₹31.55 lakh crore.
3. Karnataka
Karnataka, the largest southern state by area, comes next with a GDP share of 8.2% in 2023-24, making it the third richest state.
4. Gujarat
Gujarat, the world’s leading producer of processed diamonds, is expected to show strong performance in FY 2024-25, with a projected GSDP of ₹27.9 lakh crore. It is also one of India’s foremost industrialized states.
5. Uttar Pradesh
Uttar Pradesh, home to 16% of India’s population, plays a significant role in the national economy, contributing around 8% to India’s GDP. Its GSDP is projected to reach ₹24.99 lakh crore in FY 2024-25.
6. West Bengal
West Bengal’s GSDP is expected to be ₹18.8 lakh crore (US$230 billion) in 2024-25. Historically contributing 10.5% to India’s GDP, its share has decreased to about 5.6% as of 2023.
7. Rajasthan
Rajasthan contributes approximately 5% to India’s GDP, placing it seventh on the list. The state is emerging as one of the fastest-growing regions in the country.
8. Telangana
With a 4.90% share of national GDP, Telangana’s GSDP was estimated at ₹15.01 lakh crore, projected to rise to ₹16.5 lakh crore in 2024-25.
9. Andhra Pradesh
The GSDP of Andhra Pradesh for FY 2024-25 is estimated at ₹15.89 lakh crore, contributing 4.70% to the nation’s GDP.
10. Madhya Pradesh
Madhya Pradesh ranks tenth with a projected GSDP of ₹15.22 lakh crore for 2024-25, reflecting a 0.6% increase from the previous year.
A Promising Economic Future
India’s journey from colonial rule to becoming the fifth-largest economy in the world is remarkable. With promising growth projections, the contributions of its diverse states are vital for maintaining this momentum. As India develops further, focusing on the economic wealth of its regions will be crucial for ensuring inclusive and balanced progress for all.
