Top 10 fastest-growing major state economies in India over five years

India’s economic expansion over the past five years has been driven by strong growth across several states, not just a handful of regions. RBI data on Gross State Domestic Product (GSDP) at constant prices show that multiple state economies recorded solid real growth between FY20 and FY25, after adjusting for inflation.

This state-level performance aligns with the broader national trend. During the same period, India’s real GDP increased from Rs 145.35 lakh crore in FY20 to Rs 187.97 lakh crore in FY25, marking a 29% rise over five years. The data also shows that the top 10 fastest growing major state economies outpaced the national growth rate, with expansion of up to 45%.

Assam emerged as the fastest-growing state economy, recording 45% growth. Its GSDP rose from Rs 2.4 lakh crore in FY20 to Rs 3.5 lakh crore in FY25. The state’s economy is majorly dependent on agriculture, oil and gas, and rising infrastructure investment in the Northeast.

Tamil Nadu ranked second with 39% growth, as its GSDP increased from Rs 12.4 lakh crore to Rs 17.3 lakh crore. The state has a strong manufacturing base, with automobiles, electronics, textiles, and services playing a key role.

Karnataka posted 36% growth, with GSDP rising from Rs 11.5 lakh crore to Rs 15.7 lakh crore. Technology services, startups, biotechnology, and advanced manufacturing remain its core strengths.

Uttar Pradesh recorded 35% growth over five years, with GSDP increasing from Rs 11.7 lakh crore to Rs 15.8 lakh crore. Its large domestic market, agriculture base, and expanding industrial and logistics infrastructure support growth.

Rajasthan followed with 34% growth, as its economy expanded from Rs 6.8 lakh crore to Rs 9.1 lakh crore. Mining, renewable energy, tourism, and cement production are major contributors in the state economy.

Bihar and Andhra Pradesh both recorded 33% growth. Bihar’s economy grew from Rs 4.0 lakh crore to Rs 5.3 lakh crore, driven mainly by agriculture and services, while Andhra Pradesh expanded from Rs 6.5 lakh crore to Rs 8.7 lakh crore, supported by agriculture, ports, logistics, and food processing.

Chhattisgarh and Jharkhand each posted 31% growth. Chhattisgarh’s GSDP increased from Rs 2.5 lakh crore to Rs 3.3 lakh crore, led by mining, power generation, and steel, while Jharkhand’s economy rose from Rs 2.3 lakh crore to Rs 3.0 lakh crore, supported by minerals and heavy industries.

Telangana completed the top ten with 30% growth, as its GSDP increased from Rs 6.4 lakh crore to Rs 8.4 lakh crore. Information technology, pharmaceuticals, and urban services form the backbone of the state economy.