Top 10 Most Developed States In India In 2023
The concept of development is highly subjective and there is no one-size-fits-all approach to measure it. Economic growth, social status, and political stability can all be used to define development, but the outcomes will vary. Furthermore, the rate of change in development is more important than the actual figures. India is one of the fastest developing countries in the world and here are the 10 most developed states that are contributing to its global progress.
1. Maharashtra
GDP per capita: US$3,000
Maharashtra is undoubtedly the most developed state in India in terms of economic parameters, as it is home to the city of Mumbai, which is widely known as the financial capital of the country. This western Indian state boasts a Gross Domestic Product (GDP) of US$450 billion and has seen progress in all sectors, such as agriculture, industry, and services. As the largest contributor to India's national income, accounting for 14%, it is clear that Maharashtra's development is comprehensive.
2. Tamil Nadu
GDP per capita: US$3,900
With an impressive GDP of US$280 billion, Tamil Nadu is one of the most developed states in India. Not only economically, but the state also has one of the highest Human Development Indexes at 0.70. The annual growth rate of the state in the past three years has been higher than that of Maharashtra. Tamil Nadu is a pro-innovation economy which has achieved socio-economic success, making it a model for other Indian states to follow. The state has excelled in providing world-class infrastructure, a conducive business environment and healthcare for all.
3. Gujarat
GDP per capita: US$3,200
It is not unexpected that Gujarat, the third most developed state in India, relies heavily on its industrial growth to keep expanding. With a GDP of US$ 260 billion and a tremendous growth rate of 13.8% (higher than any of the top five most developed states), Gujarat is an extremely prosperous state. Its success can be attributed to its status as a SEZ (Special Economic Zone) and the Gujarat Model of Development, which is often looked to by other states as a way to promote their own development.
4. Karnataka
GDP per capita: US$3,200
Karnataka is home to the IT hub of India and has grown significantly in recent years. With a GDP of 250 billion US dollars, it is the fourth largest economy in the country. It is more industrialized than many other states in India and has a higher than average Human Development Index.
5. Uttar Pradesh
GDP per capita: US$990
Uttar Pradesh, taking fifth place among the most developed states in India, has a GDP equaling that of Karnataka at US$250 billion. It is the most populous state in the nation, making it the largest consumer base; it is a significant contributor to the Indian economy. Uttar Pradesh is the largest producer of food grains, and has decent infrastructural facilities. However, its Human Development Index score of 0.59 is lower than the country average. It has yet to reach double-digit growth, but if it reaches its full potential it could become a trillion dollar economy.
6. West Bengal
GDP per capita: US$1,500
With an economy of $210 billion, West Bengal is one of India's most developed states. It is a leading exporter of leather goods and has the best power infrastructure in the country. It is one of the few states that produces a surplus of food, particularly Darjeeling Tea which is highly sought after in the national and international market. West Bengal is the largest producer of vegetables and is among the largest producers of fish and poultry. Agriculture still plays a major role in the economy, but heavy industries and services have contributed significantly to its growth in recent times.
7. Rajasthan
GDP per capita: US$1,700
Rajasthan's GDP of $160 billion makes it a significant contributor to India's economy. Not surprisingly, tourism is one of the main sources of revenue in this northern Indian state, in addition to agriculture and mining. It is also considered one of the most attractive investment destinations in India and is home to a leading integrated Zinc, Lead and Silver producer. Tourism is even more important, accounting for 16% of the state's income. The cities of Jodhpur, Jaipur, Udaipur and Jaisalmer are all popular tourist destinations, generating considerable revenue for the state.
8. Andhra Pradesh
GDP per capita: US$2,000
Andhra Pradesh is one of the most robust economies in India, with a state GDP of US$ 150 billion, making it one of the most developed in the nation. Ranked the best state in India for ease of doing business by the World Bank, the 8th placed Andhra Pradesh still relies heavily on agriculture. However, with 39 functioning Special Economic Zones, the industrial sector is contributing to the state's growth. Recently, tourism has also become a major factor in the economic development of Andhra Pradesh.
9. Telangana
GDP per capita: US$2,300
Telangana has a gross domestic product of $150 billion, making it one of the most developed states in India. Despite this, agriculture remains the primary source of the state's economy, although Telangana is quickly becoming one of the leading exporters of information technology in India.
10. Kerala
GDP per capita: US$3,200
Kerala has a strong economy of 140 billion dollars, which is often used as an example of development among Indian states. Its economic growth rate is much higher than the national average, and it has the highest Human Development Index of any Indian state. Its success is due to its popularity as a tourist destination, high excise duties on liquor, and excellent infrastructure. It is no surprise that it is consistently ranked among the top 10 most developed states of India.