Telangana, Tamil Nadu Top 10 Largest States In GSDP Growth

Telangana, Tamil Nadu, and Rajasthan have emerged as the top performers in economic growth among India's 10 largest states in FY24, according to recent data from the Ministry of Statistics and Programme Implementation (MoSPI), The Hindu Businessline reported.

The Gross State Domestic Product (GSDP), a critical metric that measures the total value of goods and services produced within a state, highlights the robust economic expansion these states have achieved. The latest figures reveal significant growth in these states, underscoring their robust economic performance.

Telangana, ranked ninth by GSDP size, led the pack with a 9.2 per cent growth, pushing its real GSDP to Rs 7.9 lakh crore. This growth rate surpasses the national GDP growth of 8.2 per cent, highlighting Telangana's dynamic economy. Tamil Nadu, the third-largest state by GSDP, matched the national growth rate, expanding its economy by 8.2 per cent to reach Rs 15.7 lakh crore. Rajasthan, in the seventh position, also posted strong growth, with an 8 per cent increase in its GSDP.

A closer look at the sectors driving this growth reveals that the services sector was a key contributor. In Tamil Nadu, where the services sector accounts for 52 per cent of the state's Gross Value Added (GVA), there was a 9 per cent growth. Telangana's services sector, which makes up 63per cent of its GVA, grew even faster at 11 per cent.

In contrast, Maharashtra, the largest state economy with a real GSDP of Rs 24.1 lakh crore, saw its services sector grow by only 9per cent, a slowdown from the 13 per cent growth observed in FY23.

Despite the strong performances of Telangana, Tamil Nadu, and Rajasthan, Maharashtra remains India's largest state economy. Gujarat, which was the second-largest in FY23, is expected to retain its position based on budget estimates, though final data is yet to be released. Meanwhile, Uttar Pradesh and Karnataka are in close competition for the fourth and fifth spots, with Uttar Pradesh's GSDP narrowly surpassing Karnataka's by Rs 130 crore.