Among the 28 states in India, few are economically progressing and contributing a lot, making India a Global Power. Let’s look at the details of the top 10 Richest states in India, the factors and the sectors that strengthened those states economically.
This article provides details based on the economic indicator Nominal GSDP (Gross State Domestic Product), also known as GDP (Gross Domestic Product). It is the total value of all the final goods and services produced within a state for a time period.
| Rank | State | Projected GSDP in Lakh Crores (FY 2023-2024) |
|---|---|---|
| 1 | Maharashtra | 38.79 |
| 2 | Tamil Nadu | 28.3 |
| 3 | Gujarat | 25.62 |
| 4 | Karnataka | 25 |
| 5 | Uttar Pradesh | 24.39 |
| 6 | West Bengal | 17.19 |
| 7 | Rajasthan | 15.7 |
| 8 | Andhra Pradesh | 14.49 |
| 9 | Telangana | 14 |
| 10 | Madhya Pradesh | 13.87 |
Sources and References: PRS India, PIB India, State Budget Analysis Reports, Forbes
1. Maharashtra
With a GSDP of over 38.79 Lakh Crores, Maharashtra ranks first in the list of the top 10 richest states in India. This is mainly due to its robust Industrial sector, Financial, and Banking services. Alongside, the IT, Trade, and Agriculture sectors also contribute greatly to the state’s Economy.
Mumbai, the Financial Capital of India, also the state capital of Maharastra, is alone a major contributor to the state’s economic prosperity through its corporate head offices and stock exchange.
Other cities in Maharashtra, like Pune, Nashik, and Nagpur, are well known for their IT services, Manufacturing, and Textile Industries.
Maharashtra houses several national and international banks, insurance companies, and financial institutions making it the financial powerhouse of India.
The port facilities, well-developed infrastructure, policies, and industrial clusters helped the state to attract businesses from all over the country and abroad.
Despite its urban development, Maharashtra is a major producer of Jowar, Cotton, Soybeans, and Cereals. It is also known for the cultivation and production of several fruits and vegetables.
Tourism and Hospitality sectors also significantly contribute to its economy by attracting a large number of domestic and international tourists.
2. Tamil Nadu
As the most Industrialized state, Tamil Nadu is second among the Richest states in India, with a GSDP of 28.3 Lakh crores.
Tamil Nadu’s Manufacturing sector is one of the primary contributors to its economic growth. The state’s Manufacturing sector encompasses automobiles, textiles, leather, electronics, aerospace, and defence.
The State is also known for its IT and Banking services and houses the headquarters of several corporations.
Besides the Manufacturing and Service sectors, Tamil Nadu has a strong Agriculture base and is known for cultivating paddy, millets, sugarcane, bananas, coconuts, and spices like cloves.
Having ports like Chennai and Tuticorin and well-developed port infrastructure facilitated maritime trade within the country and with neighbouring countries. This helped attract manufacturing giants, contributing to Tamil Nadu’s Economy.
Several prestigious educational institutions and universities made Tamil Nadu an education hub. Which contributed not just to the economy but also to the availability of skilled workforce and human capital for attracting investments.
Energy is one more sector that contributes to the state’s economic prosperity.
3. Gujarat
Having a GSDP of over 23.3 Lakh Crores, Gujarat is one of the richest states in India.
Its strategic location, infrastructure, business-friendly policies, and renewable energy initiatives helped attract global and domestic investors and boosted its economy.
The robust Industrial and manufacturing sectors, particularly textiles, petrochemicals, and pharmaceuticals, form the backbone of the State.
Gujarat’s longest coastal line has not only served as a gateway for international trade but also supported the state’s Petrochemical and Pharmaceutical Sectors.
Major Industrial hubs like Ahmedabad, Surat, Vadodara, and Jamnagar house several national and international companies. These Cities significantly contribute to Gujarat’s wealth.
Various policies implemented to encourage investments have created an investment-friendly environment in the State.
Gujarat’s tourism sector attracts a large number of Tourists and generates significant revenue.
Apart from the Manufacturing and Tourism sectors, Gujarat also gets a significant amount of contribution from its agriculture sector. This state produces significant amounts of groundnuts, tobacco, and cumin.
4. Karnataka
Another state from the South, Karnataka, stands number five among the top 10 richest states in India, with a GSDP of 25 Lakh Crores.
The key contributor to this state’s economy is the Information Technology (IT) Sector.
Karnataka’s state capital, Bengaluru, is called the Silicon Valley of India as it’s home to several global tech companies and startups.
Also, Bengaluru ranks third in the list of Top 10 Richest Cities in India.
The IT sector in Bengaluru created a large number of job opportunities. Which in turn created several opportunities in fields like real estate and housing, contributing to Karnataka’s thriving economy.
The state also has well-established biotechnology-related companies and manufacturing industries in the fields of automotive, heavy engineering, and aerospace. These contribute significantly to the economy.
Moreover, the Agriculture sector is another area that significantly contributes to the GDP of Karnataka.
Mulberry, coffee, safflower, ragi, areca nut, sunflower, tamarind, and jowar are some of the highly-grown crops in Karnataka. These crops account for the lion’s share of the Nation’s productivity.
This state also accounts for 28.9 % of the national share in sericulture and apiculture.
Mining and tourism are the other areas that contribute to the state’s economy. Gold, Iron ore, quartz, bauxite, and limestone are some of the minerals found in Karnataka.
5. Uttar Pradesh
The Most populous state in India, Uttar Pradesh, has a massive economy of 24.39 lakh crores, making it the fifth richest state in India.
Various sectors, such as Agriculture, Livestock, Fishing, Manufacturing, and MSME’s are the main contributors to the state’s economy.
Known for its fertile lands, Agriculture plays a key role in the state’s economy. Uttar Pradesh is one of the largest producers of foodgrains, sugarcane, and milk.
U.P. contributes 18.68% of the country’s total food grain production.
The Micro, Small, Medium-sized Enterprise (MSME) sector as well as the well-established industrial base in textiles, sugar, and chemical sectors are the other areas where the state thrives.
The MSME sector in this state is known for food processing, handicrafts, carpet, leather-based, and textile industries. In fact, UP has the largest number of MSME units in India.
The State’s textile industry is one of the largest in India having prominent clusters in cities like Lucknow and Kanpur.
Another area, Bhadohi, is the largest carpet-weaving hub in South Asia.
Mining is another area where the state’s economy makes a significant contribution. Uttar Pradesh has substantial reserves of limestone, granite, bauxite, coal, copper, magnesite, etc.
Noida and Lucknow, Cities in Uttar Pradesh, have well built infrastructure and houses several corporate IT offices and headquarters. These Cities are attracting investments and driving the state’s economic growth.
6. West Bengal
Being the biggest financial hub in Eastern part of India, West Bengal is the India’s sixth largest economy with GSDP of 17.19 Lakh Crores.
The agriculture sector forms the backbone of the West Bengal economy, contributing 14.4% of the GSDP.
West Bengal is known for producing rice, jute, tea, vegetables, pulses, and fruits. The total agricultural output is around 16.76 million tonnes, which makes up 13% of the total production in India.
The State’s MSME and Manufacturing sectors are one of the major contributors to the West Bengal economy that encompasses steel, textile, electronics, and engineering fields.
Kolkata, the state capital houses several IT, software, financial and service sector corporations which further adds to the West Bengals economic strength.
Presence of several tourist locations, the rich culture and the heritage of West Bengal attracts visitors around the world contributing to its economy.
The well-built port infrastructure made Bengal one of the leading exporters in India and supports the state’s growth.
To enhance the economic prospects, West Bengal is steadily investing in improving infrastructure.
7. Rajasthan
With a GDP of 15.7 Lakh Crores, Rajasthan ranks sixth among the Top 10 Richest states in India.
One key contributor to Rajasthan’s economy is the tourism industry. Every year, the state attracts millions of domestic and international visitors due to its forts, palaces, and desert landscapes.
Agriculture and Mining are two other major sectors that strengthen Rajasthan’s Economy.
Agriculture alone contributes nearly 30% of Rajasthan’s gross state value added at current prices.
Rajasthan’s Manufacturing and Industrial sector further contributes to the state’s economic growth. It encompasses cement, mining, Auto components, minerals, textiles, agro-based industries, ceramics, and renewable energy industries.
Mining is a vital sector of the Rajasthan economy. The state’s rich mine reserves make it a prominent player in India’s mining industry.
Rajasthan has significant deposits of copper, zinc, gypsum, and limestone.
Also, the state accounts for the 100% national share of Wolla stonite, Jasper and 99% of Zinc concentrate. Other major minerals mined in Rajasthan include fluorite, marble, asbestos, lead concentrate, calcite and sandstone.
Rajasthan’s Industrial sector further adds to the Rajasthan’s economic strength.
8. Andhra Pradesh
Even after the bifurcation of Telangana and without a tier 1 City, Andhra Pradesh has emerged as one of the fastest-growing states in India. It stands eighth in the top 10 richest states in India with a GSDP of 14.49 Lakh crores.
The agriculture sector plays a key role in Andhra Pradesh’s Economy. This state leads in horticulture, aquaculture, and livestock production, contributing 40% of the state’s GDP.
Fertile lands, innovative farming practices, and efforts to improve irrigation facilities and provide quality seeds have significantly increased this state’s agricultural productivity.
Andhra Pradesh stands first in the total volume of fruits produced in India, with 19% of the total volume. Also, it stands in 4th place among the vegetable-producing states in India.
Industries and service sector are two other major contributors to the Andhra Pradesh Economic growth.
The main industries in Andhra Pradesh are automobiles, pharmaceuticals, spices, textiles, auto components, mines, and food processing.
In addition, Sri City, developed by the State Government, is one of India’s most coveted business destinations, further adding to its economic strength.
Sricity attracted investments surpassing USD 4.5 Billion giving a great boost to the economic growth.
The strategic location of Andhra Pradesh and the long coastal line with six operational ports made Andhra an export hub.
New investments in renewable energy, Green hydrogen and Green ammonia are one area where Andhra Pradesh is focusing on improving its Economy.
9. Telangana
One of the fastest-growing states in India, Telangana ranks ninth on the list with a GDP of 14 Lakh Crores.
Service sector is the major contributor to the Telangana economy (61%), followed by Agriculture(21%) and Industry(17%).
Hyderabad, the capital of Telangana, is a major wealth creator due to its robust IT service sector companies, as well as pharmaceutical and biotech companies.
Several manufacturing industries related to automobiles, auto components, food, and textiles are located around Hyderabad. Which further contributes to economy of Telangana.
Due to its recent reforms in irrigation, this state has witnessed considerable growth in its agriculture sector, boosting its overall wealth.
Rice, cotton, chilli, turmeric, mango, and peas are the main crops grown in Telangana.
The presence of several seed development centres made Telangana a growing seed hub state in India.
The strategic location of Telangana, having world-class infrastructure, and greater connectivity with several neighbouring states, made Telangana a great destination for investments.
10. Madhya Pradesh
Present in the centre of India, Madhya Pradesh, with its great potential and abundant natural resources stands at tenth place in the top 10 richest states in India with a GSDP of 13.87 Lakh Crores.
Agriculture stands as the major contributor to the Madhya Pradesh economy contributing 47% of its GDP.
This state is the major producer of soybeans, wheat, pulses, oilseeds, lentils and other food grains.
The favourable climate and abundant fertile lands, along with initiatives of the Government, helped to boost agriculture productivity.
The State Government also established several processing units across the state to create new opportunities.
Cities like Indore, Bhopal, and Jabalpur are well known for their trade and contribute greatly to Madhya Pradesh’s economy.
The Industrial base in Madhya Pradesh is diversified and hosts industries in the automobiles, electric goods, pharmaceuticals, textiles, cement, and chemical sectors.
Furthermore, the presence of abundant mineral resources, like coal, copper, iron, bauxite, manganese, and limestone made the mining sector contribute significantly to the state’s economy.
Energy and service sectors are two other sectors that contribute greatly to Madhya Pradesh’s GDP.