Top 10 Indian States Contributing to India’s GDP

India, as one of the fastest-growing economies in the world, relies heavily on the economic performance of its states. Each state contributes to the national economy through various sectors such as agriculture, industry, services, and information technology. This article provides a detailed overview of the top ten Indian states that contribute the most to the country’s Gross Domestic Product (GDP), along with an explanation of why these states stand out.

Understanding GDP and Its Importance

Gross Domestic Product or GDP is a measure of the total value of all goods and services produced within a country or region in a specific time frame. It is a vital indicator of economic health. A high GDP indicates strong production, employment, and income levels, making it crucial for evaluating a state’s or nation’s economic development.

Top 10 Indian States by GDP: Detailed Comparison

The following table outlines the projected GSDP for FY 2024–25, per capita Net State Domestic Product (NSDP) for FY 2022–23 (and FY 2023–24 where available), and the estimated state share in India’s total GDP.

Basis for Ranking the States

Maharashtra – India’s Economic Powerhouse

Maharashtra remains at the top with a projected GSDP of over 42 lakh crore. It leads due to its strong finance, manufacturing, entertainment, and IT sectors. Mumbai, the state capital, is India’s financial hub, hosting the Reserve Bank of India, BSE, NSE, and the headquarters of numerous corporations.

Tamil Nadu – The Manufacturing and Services Leader

Tamil Nadu’s diversified economy includes a strong manufacturing base (automobiles, textiles), a thriving IT industry in Chennai, and a high per capita income of over 3.5 lakh, making it one of the wealthiest Indian states.

Karnataka – India’s Tech Hub

Karnataka, with Bengaluru as its capital, contributes significantly through its IT and startup ecosystem. The state’s service sector, especially in software exports, is a key driver of growth, supported by a per capita NSDP of 3.31 lakh.

Gujarat – Industrial and Export Strength

Gujarat is known for its business-friendly policies and leadership in industries like petrochemicals, textiles, and diamonds. Its coastal advantage boosts international trade through its major ports.

Uttar Pradesh – Agricultural Strength with Rising Industry

Despite having the lowest per capita income (0.96 lakh) among the top contributors, Uttar Pradesh contributes 8.4 percent to national GDP due to its massive population and agricultural dominance.

West Bengal – Diversified and Strategically Located

West Bengal has a strong presence in agriculture, industry, and logistics, with Kolkata acting as a major economic center in Eastern India. Its GDP per capita remains moderate, indicating room for growth.

Rajasthan – Emerging Industrial Base

Known for mining, textiles, and tourism, Rajasthan is expanding its industrial base. Its GDP per capita has grown steadily, reaching 1.67 lakh in FY 2023–24.

Telangana – High Per Capita, High-Tech Growth

Telangana has the highest per capita income (3.83 lakh) among the top 10. Its economy is driven by IT, biotech, and pharma industries centered in Hyderabad.

Andhra Pradesh – Growing Infrastructure and Exports

With growing seaports, agriculture, and renewable energy sectors, Andhra Pradesh continues to increase its economic output. The state also benefits from strong public-private partnerships.

Madhya Pradesh – Resource-Rich and Expanding

Madhya Pradesh’s growth is powered by agriculture, mining, and industrial development. With a per capita income of 1.56 lakh, the state still has room for improvement in income distribution.