How We Did It: The methodology behind the ranking of India’s Top 10 manufacturing states

To identify india’s overall top-performing manufacturing states, Business Today developed a blended scorecard that combines both the current scale of manufacturing and long-term as well as medium-term growth across all seven parameters evaluated in the study. The blended scorecard provides a balanced assessment by recognising states that have built a strong manufacturing base while also rewarding those that have demonstrated sustained long-term growth and strong recent momentum. This approach avoids relying solely on the size of the manufacturing ecosystem and instead captures both scale and growth, offering a comprehensive measure of manufacturing competitiveness across Indian states.

The scorecard was prepared using the same seven indicators: Number of factories, state-wise invested capital, gross state value added (GSVA)—manufacturing, GSVA—construction, state-wise exports, state-wise number of workers, and state-wise availability of power.

For each parameter, all 33 states and Union territories, included in study, were ranked based on their latest available absolute values. The state with the highest value received Rank 1 and was awarded the highest score for that parameter, followed by the remaining states in descending order. In addition to the latest performance, states were also ranked based on their 10-year growth and 5-year growth for each parameter. For exports, long-term growth was assessed over a seven-year period (FY18–FY25) due to the limited availability of comparable historical data.

For every parameter, three separate scores—based on the latest absolute performance, 10-year growth, and 5-year growth—were therefore assigned. These three scores were combined to arrive at a composite score for each parameter, ensuring that both the current strength of a state’s manufacturing ecosystem and its growth trajectory were reflected in the assessment.

The composite scores across all seven parameters were then aggregated to calculate a final blended score for every state. States were subsequently ranked based on their overall scores, and the Top 10 states with the highest final blended scores were recognised as India’s leading manufacturing states.

@PrinceInMedia