Top 10 Fastest Growing Indian State Economies Over Five Years

India’s economic expansion over the past five years has been driven by strong growth in several states, not just a handful of regions. RBI data on gross state domestic product (GSDP) at constant prices shows that several state economies recorded strong 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, an increase of 29% over five years. The data also shows that the ten fastest growing major economies exceeded the national growth rate, expanding by up to 45%.

Assam became the fastest growing state economy, registering a growth of 45%. Its GSDP increased from Rs 2.4 lakh crore in FY20 to Rs 3.5 lakh crore in FY25. The state’s economy mainly depends on agriculture, oil and gas, as well as increasing infrastructure investments in the North East.

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

Karnataka recorded a growth of 36%, with GSDP increasing from Rs 11.5 lakh crore to Rs 15.7 lakh crore. Technology services, startups, biotechnology and advanced manufacturing remain its main strengths.

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

Rajasthan followed with a growth of 34%, as its economy grew from Rs 6.8 lakh crore to Rs 9.1 lakh crore. Mining, renewable energy, tourism and cement production contribute significantly to the state’s economy.

Both Bihar and Andhra Pradesh recorded a growth of 33%. 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 grew from Rs 6.5 lakh crore to Rs 8.7 lakh crore, supported by agriculture, ports, logistics and food processing.

Chhattisgarh and Jharkhand each recorded a growth of 31%. Chhattisgarh’s GSDP grew from Rs 2.5 lakh crore to Rs 3.3 lakh crore, led by mining, power generation and steel, while Jharkhand’s economy grew from Rs 2.3 lakh crore to Rs 3.0 lakh crore, driven by minerals and heavy industries.

Telangana rounded out the top ten with a growth of 30%, with its GSDP increasing from Rs 6.4 lakh crore to Rs 8.4 lakh crore. Information technology, pharmaceuticals and urban services form the backbone of the state’s economy.