How Did Maharashtra Become India’s Top Performing State, With Gujarat in 2nd Place?

New Delhi, April 29 (NationPress) Maharashtra has emerged as the leading state in India’s overall composite rankings based on both economic and social metrics, followed closely by Gujarat and Karnataka, as highlighted in a report published on Tuesday.

Maharashtra excelled in financial development, showcasing robust performance across the economic, fiscal, and social dimensions, while Gujarat’s high ranking is attributed to its strong economic position and positive results in the fiscal and infrastructure sectors, according to the CareEdge Ratings' 'State Ranking 2025' report.

Western and southern states dominate the top five positions. The western states excel in fiscal, economic, and financial development, whereas southern states show strength in economic performance, financial growth, environmental standards, and governance. Notably, Goa secured the top position in Group B (which includes north-eastern, hilly, and small states) due to its impressive scores across financial development, infrastructure, social, fiscal, and economic pillars.

Mehul Pandya, CEO of CareEdge, stated, "The initiative to rank Indian states aims to capture their long-term growth potential while emphasizing the quality and inclusiveness of the growth model. This approach will aid in informed decision-making and help tailor existing policies to the diverse needs of Indian states."

The comprehensive evaluation was based on seven critical pillars: Economic, Fiscal, Infrastructure, Financial Development, Social, Governance, and Environment.

Gujarat excelled in the economic pillar, benefiting from solid performance indicators such as per capita Gross State Domestic Product (GSDP), Foreign Direct Investment (FDI) as a percentage of GSDP, and Gross Fixed Capital Formation (GFCF) in industries.

Karnataka and Maharashtra followed, demonstrating high shares of industry and services in Gross Value Added (GVA) and a positive trend in FDI. Overall, western and southern states showcased strong economic rankings with a favorable per capita GSDP, significant shares of industry and services, and robust FDI. Sikkim topped Category B, buoyed by strong performance in per capita GSDP and a substantial share of industry and services in GVA, as reported.

Odisha led the fiscal rankings, performing exceptionally well in managing revenue deficits, interest payments, debt management, outstanding liabilities, and guarantees. Gujarat and Maharashtra followed suit. Gujarat’s fiscal performance was bolstered by better scores in fiscal deficit, government capital outlays, and outstanding liabilities.

In Category B, Uttarakhand ranked well due to improved outcomes in fiscal deficit, tax revenues, outstanding liabilities, and a relatively higher government investment in health and education, as per the report.

Maharashtra excelled in financial development, showing strong results in bank and NBFC credit disbursements, mutual fund penetration, and health insurance coverage. Following Maharashtra were Telangana and Haryana. Southern states, including Telangana and Tamil Nadu, also displayed positive results in bank credit disbursements and self-help group loans.

Haryana secured the third spot, supported by favorable outcomes in NBFC credit, PMJDY account balances, and penetration of life insurance and mutual funds. In Category B, Goa is leading by a significant margin due to its high scores in most indicators.

Punjab and Haryana ranked high in infrastructure due to superior scores in per capita power availability, railway density, and net irrigated area. In terms of social infrastructure, both states performed well in pupil-teacher ratios but lacked in doctor availability. Goa excelled in Group B states, showing strong performance in per capita power availability, road and railway density, air passenger traffic, and doctor availability, according to the report.

Kerala distinguished itself in the social assessment, achieving high scores across numerous indicators.

Similarly, Tamil Nadu showcased commendable performance across several indicators, although Kerala faced challenges regarding unemployment rates.

Andhra Pradesh topped the governance pillar assessment, benefiting from improved scores in the business environment, court conviction rates, court trial completions, and judicial strength. Madhya Pradesh followed, aided by successful court trial completions and effective public e-service delivery.