Top Contributing States to India’s Economy: Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, and Gujarat
By Home Academy
India’s economic growth is driven by a few key states that contribute significantly to the national GDP. As of FY 2023-24, the top five states—Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, and Gujarat—collectively account for over 47% of India’s total GDP, highlighting regional concentration in economic activity.
1. Maharashtra – India’s Largest Economic Contributor (13.46%)
Maharashtra continues to dominate India’s economy, contributing 13.46% of the national GDP. With a Gross State Domestic Product (GSDP) exceeding $400 billion, it is the hub of industrial, financial, and service sectors. Cities like Mumbai and Pune drive growth in banking, IT, manufacturing, and entertainment, making the state a cornerstone of national economic development.
2. Tamil Nadu – Industrial Powerhouse (8.93%)
Tamil Nadu holds the second position in India’s economic hierarchy, contributing 8.93% of GDP. Known for its strong industrial base, the state excels in automobile manufacturing, textiles, electronics, and software services. Chennai, Coimbatore, and other cities act as major economic engines, supporting both domestic and export-oriented industries.
3. Uttar Pradesh – Agricultural and Service Strength (8.77%)
Uttar Pradesh, India’s most populous state, contributes 8.77% to the national GDP. Its economy is anchored in agriculture, manufacturing, and services. The state benefits from a large workforce, diverse agro-products, and emerging industrial corridors, making it a key contributor to national economic stability.
4. Karnataka – Technology and Innovation Leader (8.49%)
Karnataka contributes 8.49% to India’s GDP, driven by its technology and innovation sector. Bengaluru, the IT capital of India, has positioned the state as a global software and startup hub. The state also excels in biotechnology, aerospace, and manufacturing, combining industrial and knowledge-based economic growth.
5. Gujarat – Manufacturing and Industrial Hub (8.05%)
Gujarat contributes 8.05% to the national economy, with a strong focus on manufacturing, industrial development, and trade. The state is famous for petrochemicals, textiles, engineering, and ports that support domestic and international commerce.
Other Major Contributors
West Bengal also plays a significant role in India’s economy, ranking just behind the top five states. Its diverse industrial base, agriculture, and port infrastructure contribute to the national GDP, although at a lower share compared to the leading five states.
Key Takeaways for FY24-25
Regional Concentration: The top five states contribute nearly 47.71% of India’s GDP, highlighting economic concentration in certain regions.
South India Influence: Collectively, the five South Indian states account for almost 31% of the national economy, emphasizing the industrial and IT strength of the south.
Highest Growth States: States like Assam, Bihar, and Telangana have shown strong growth in FY24, while Maharashtra leads in overall GSDP contribution.
Per Capita Income Leaders: Delhi, Telangana, Karnataka, and Haryana lead in per capita income, reflecting higher productivity and industrialization levels.
Conclusion
India’s economic growth is concentrated in a few key states, with Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, and Gujarat driving nearly half of the GDP. These states contribute through diverse industrial, agricultural, and service sectors, making them critical for national policy planning, investment, and regional development. Understanding the economic role of these states is essential for students, researchers, and professionals analyzing India’s growth trajectory.