GDP of Indian states and union territories

 

India is a vast and diverse nation, with states and union territories contributing significantly to its economic growth. Each region has a unique economic structure, and its Gross Domestic Product (GDP) reflects its industrial, agricultural, and service-based strengths. In this article, we will explore the economic landscape of India, focusing on the GDP of various Indian states and union territories. This examination will help us understand how different regions contribute to the national economy and where opportunities for growth lie.

What is GDP?

The Gross Domestic Product (GDP) is the total monetary or market value of all goods and services produced within a country's borders during a specific period. It is a key indicator of the health of an economy, showing whether the economy is growing or contracting.

In the context of Indian states and union territories, GDP helps us compare their economic performance and provides insight into the distribution of wealth and productivity across the country.

The GDP Landscape of Indian States

Top Performing States

Several states consistently rank among the top contributors to India's GDP, showcasing remarkable economic prowess. These states serve as engines of growth, driving national economic progress. 

 

GSDP and GSDP Per capita data is sourced from PRS Legislative Research based on 2024-25 budget estimates

Share of Larger Indian States to India's GDP in 2023-24

Top GDP Contributors Among Indian States

1. Maharashtra: India’s Economic Powerhouse

Maharashtra, home to India's financial capital, Mumbai, consistently ranks as the top state in terms of GDP. With a GDP of approximately $400 billion, Maharashtra’s economy thrives on industries such as finance, entertainment, manufacturing, and services.

2. Tamil Nadu: The Manufacturing Hub

Tamil Nadu has a well-developed industrial sector, contributing significantly to India's automobile, textiles, and information technology industries. With a GDP of around $247 billion, it is one of the most industrialised states in India.

3. Uttar Pradesh: The Agrarian Economy

Despite being primarily agrarian, Uttar Pradesh, India's most populous state, boasts a GDP of $230 billion. Its large population provides both a vast labour force and a massive internal market for goods and services.

4. Karnataka: The Silicon Valley of India

Karnataka, particularly its capital Bengaluru, is known for its thriving IT industry. The state's GDP stands at $227 billion, driven by technology, biotechnology, and aerospace industries.

5. Gujarat: The Land of Entrepreneurs

Gujarat, with its strong focus on trade and commerce, especially in textiles, petrochemicals, and pharmaceuticals, has a GDP of $230 billion. The state's pro-business policies have made it an attractive destination for investment.

6. West Bengal: The Gateway to the East

West Bengal, with a GDP of $176 billion, has a diverse economy that includes agriculture, manufacturing, and services. Kolkata, the state's capital, plays a pivotal role in trade and commerce in eastern India.

Other Noteworthy States and Union Territories

• Rajasthan: Known for its agriculture and tourism, contributing $138 billion.

• Andhra Pradesh and Telangana: Both states have burgeoning IT and agriculture sectors, each contributing $138 billion to the national economy.

• Kerala: With a focus on tourism and remittances from overseas, Kerala's GDP stands at $137 billion.

• Delhi: As India's political capital, Delhi's service-driven economy has a GDP of $134 billion.

• Punjab: Known for its agriculture, Punjab contributes $102 billion to the national economy.

Economic Insights

1. Industrial vs. Agricultural Economies

States like Maharashtra, Tamil Nadu, and Gujarat have large industrial sectors contributing to their high GDP figures. In contrast, states such as Uttar Pradesh and Punjab rely more on agriculture. This diversity showcases India's varied economic landscape, where both modern industries and traditional sectors coexist.

2. Regional Disparities

There are significant disparities in GDP across different regions of India. While states like Maharashtra and Karnataka have embraced technology and industry, others, particularly in the northern and northeastern parts of India, lag behind. These disparities highlight the need for balanced regional development and targeted investments in underdeveloped areas.

3. Role of Services

States like Karnataka and Delhi demonstrate the importance of the service sector, particularly in IT and finance. The rapid growth of these industries in urban areas has contributed substantially to India's overall economic progress, with cities like Bengaluru and Mumbai serving as global hubs for technology and finance.

Understanding the GDP of Indian states and union territories provides insight into the country's economic dynamics. Each region plays a crucial role in the national economy, with some excelling in industrial output, others in agriculture, and still others in services. By analysing the economic strengths and weaknesses of these regions, policymakers and investors can make more informed decisions to foster growth and reduce regional disparities.