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Maharashtra had the slowest growth among India’s top four states, while this southern state led with a 65% GSDP rise from 2021-22 to 2024-25
This is the eighth revision of India’s national accounts base year.
Fresh government data suggests that two of India’s traditional economic heavyweights, Maharashtra and Gujarat, have seen comparatively slower economic growth over the past four years, even as southern states have accelerated their expansion. Among the four largest state economies including Maharashtra, Tamil Nadu, Karnataka and Gujarat, Karnataka recorded the fastest growth since the post-pandemic period, while Maharashtra registered the slowest pace of expansion.
Despite the slower growth rate, Maharashtra continues to remain India’s largest state economy. Its Gross State Domestic Product (GSDP) is estimated at Rs 42,67,771 crore in 2024-25. Since 2021-22, the state’s GSDP has grown by around 43%, rising from Rs 29,81,024 crore. In absolute terms, this translates into an increase of nearly Rs 12.86 lakh crore, the highest addition among the four states during the period.
However, the growth rate trails that of its peers. Karnataka has emerged as the fastest-growing state economy among the group, registering an expansion of roughly 65% between 2021-22 and 2024-25. Its GSDP increased from Rs 17,02,227 crore to an estimated Rs 28,09,063 crore. Analysts attribute much of this surge to the rapid expansion of the technology and services sectors in the southern state.
Gujarat recorded the second-highest growth among the four, with its GSDP rising by nearly 48%, from Rs 18,79,826 crore in 2021-22 to about Rs 27,90,000 crore in 2024-25. The state’s strong industrial and manufacturing ecosystem continues to underpin its economic performance.
Meanwhile, Tamil Nadu also posted robust gains, with its economy expanding by around 47% over the four-year period. The state’s GSDP grew from Rs 21,36,351 crore in 2021-22 to an estimated Rs 31,55,096 crore in 2024-25, making it the closest challenger to Maharashtra in terms of overall economic size.
Even with slower percentage growth, Maharashtra retains a comfortable lead in absolute terms. In 2024-25, its economy is estimated to be about Rs 11 lakh crore larger than that of Tamil Nadu, around Rs 14 lakh crore ahead of Gujarat, and roughly Rs 15 lakh crore bigger than Karnataka.
Maharashtra, Tamil Nadu, Karnataka and Gujarat are widely regarded as the primary engines of India’s economic growth. Experts note that rising investments, a thriving startup ecosystem, and strong domestic industries have helped southern states narrow the gap with the country’s largest state economy.
March 05, 2026, 05:26 PM IST
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