As per the State Bank Of India (SBI) Ecowrap report, India is now projected to attain the rank of the world’s third-largest economy by 2027 (FY28), advancing its timeline from the earlier estimation of 2029 (FY30). The report further highlights that Uttar Pradesh and Maharashtra, two prominent states, are poised to exceed the $500 billion milestone individually by FY28. This remarkable achievement will collectively contribute to almost 25% of India’s total Gross Domestic Product (GDP).
These states are expected to grow at a faster pace than the national average due to a number of factors, including their large populations, strong industrial base, and favorable demographics.
Top 5 Economies States By Financial Year 2028
| Maharashtra | $647 Billion |
| Uttar Pradesh | $515 Billion |
| Tamil Naidu | $426 Billion |
| Karnataka | $395 Billion |
| Gujarat | $386 Billion |
Uttar Pradesh :
Uttar Pradesh is expected to be the fastest-growing state in 2028, with a GDP growth rate of 8.5%. The state is home to a large and young population, which is expected to drive consumption demand. Uttar Pradesh is also investing heavily in infrastructure, which will further boost its growth.
Some of the key drivers of growth in Uttar Pradesh include:
- The construction sector, which is expected to grow at a rapid pace due to the government’s investment in infrastructure projects such as roads, bridges, and airports.
- The manufacturing sector, which is expected to benefit from the government’s focus on attracting investment and promoting exports.
- The services sector, which is expected to grow on the back of strong demand from the growing population.
Maharashtra :
Maharashtra is the second-fastest-growing state, with a GDP growth rate of 8%. The state is home to the financial capital of Mumbai and the industrial hub of Pune. Maharashtra is also a major exporter of goods and services.
Some of the key drivers of growth in Maharashtra include:
- The financial sector, which is expected to continue to grow due to Mumbai’s status as a global financial center.
- The IT sector, which is expected to benefit from the state’s focus on attracting investment and promoting innovation.
- The manufacturing sector, which is expected to grow on the back of strong demand from the domestic and export markets.
Gujarat :
Gujarat is the third-fastest-growing state, with a GDP growth rate of 7.5%. The state is home to a number of industries, including textiles, chemicals, and pharmaceuticals. Gujarat is also a major tourist destination.
Some of the key drivers of growth in Gujarat include:
- The textile industry, which is expected to benefit from the state’s focus on promoting exports.
- The chemicals industry, which is expected to grow on the back of strong demand from the domestic and export markets.
- The tourism industry, which is expected to grow due to the state’s investment in infrastructure and promotion of tourism.
Tamil Nadu :
Tamil Nadu is the fourth-fastest-growing state, with a GDP growth rate of 7%. The state is home to the IT hub of Chennai and the automobile hub of Coimbatore. Tamil Nadu is also a major exporter of goods and services.
Some of the key drivers of growth in Tamil Nadu include:
- The IT sector, which is expected to continue to grow due to the state’s focus on attracting investment and promoting innovation.
- The automobile sector, which is expected to benefit from the state’s focus on promoting manufacturing.
- The tourism industry, which is expected to grow due to the state’s rich cultural heritage and natural beauty.
Karnataka :
Karnataka is the fifth-fastest-growing state, with a GDP growth rate of 6.5%. The state is home to the IT hub of Bengaluru and the manufacturing hub of Mysuru. Karnataka is also a major exporter of goods and services.
Some of the key drivers of growth in Karnataka include:
- The IT sector, which is expected to continue to grow due to the state’s focus on attracting investment and promoting innovation.
- The manufacturing sector, which is expected to benefit from the state’s focus on promoting exports.
- The agriculture sector, which is expected to grow due to the state’s focus on promoting irrigation and improving productivity.
These are just some of the factors that are expected to drive growth in these states in 2028. The government’s focus on infrastructure development, investment promotion, and human capital development will also play a key role in ensuring their continued growth.
Top 5 Indian States By GSDP
| State | GSDP US $) |
|---|---|
| Maharashtra | 417 Billion |
| Tamil Naidu | 278 Billion |
| Gujarat | 265.4 Billion |
| Uttar Pradesh | 265.1 Billion |
| Karnataka | 263.5 Billion |
Know More About – The Indian Economy : All Information Growth Rate & Statistics
Are there any specific cities or regions within these states that offer unique investment opportunities?
Yes, each state has cities or regions known for specific industries. For example, Maharashtra’s financial capital Mumbai and industrial hub Pune, or Tamil Nadu’s IT hub Chennai and automobile center Coimbatore. Identifying these key regions can guide your investment decisions.
Can foreign investors also benefit from investing in these states?
Absolutely. Many of these states actively encourage foreign investment through policies that offer incentives, ease of doing business, and investment-friendly regulations. Research foreign investment regulations and seek advice to navigate this process.
What are the top 5 states in India with the highest GDP growth rate ?
The top 5 states in India with the highest GDP growth rate in 2023 are:
Uttar Pradesh (8.5%)
Maharashtra (8%)
Gujarat (7.5%)
Tamil Nadu (7%)
Karnataka (6.5%)
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