India Economic Survey 2025–26: State-wise Growth Story

New Delhi:

The Economic Survey of India 2025–26, tabled in Parliament ahead of the Union Budget, presents a confident picture of the Indian economy, highlighting strong domestic demand, resilient growth, and improved macroeconomic stability. While the Survey primarily focuses on national-level indicators, it also offers crucial insights into state-wise economic performance patterns that shape India’s growth story.

Strong National Outlook

According to the Survey, India’s real GDP growth for FY 2025–26 is estimated at around 7.4%, despite global uncertainties such as geopolitical tensions and financial market volatility. For FY 2026–27, growth is projected in the range of 6.8% to 7.2%, driven by consumption, infrastructure investment, and a robust services sector.

Inflation remained under control during the year, banking sector indicators stayed healthy, and foreign exchange reserves provided a strong external buffer.

State-wise Economic Contribution: The Big Engines

Although the Economic Survey does not publish an official state-wise GDP table, existing estimates and trends show that a handful of states continue to drive India’s economic momentum.

Top GDP-Contributing States

• Maharashtra remains India’s largest state economy, led by finance, manufacturing, trade, and services.
• Tamil Nadu continues to be a manufacturing powerhouse, with strength in automobiles, electronics, textiles, and exports.
• Uttar Pradesh, India’s most populous state, is emerging as a major growth centre with rising infrastructure spending and industrial corridors.
• Karnataka retains its leadership in IT, startups, biotechnology, and knowledge-based services.
• West Bengal shows steady growth through services, MSMEs, logistics, and port-led activities.

Together, these states contribute a significant share of India’s Gross State Domestic Product (GSDP).

Southern States: Manufacturing and Services Lead

Southern India continues to outperform in several economic indicators.

• Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, and Kerala display strong industrial bases, export-oriented growth, and skilled manpower.
• States like Telangana and Karnataka benefit from IT, digital services, and global capability centres.
• Andhra Pradesh records momentum in infrastructure, ports, logistics, and manufacturing investments.

The Survey also notes that southern states are increasingly leading in ease of doing business reforms and green energy initiatives.

Western and Northern Growth Hubs

• Gujarat remains a manufacturing and export-driven economy, supported by ports, MSMEs, and industrial clusters.
• Rajasthan leverages mining, tourism, and renewable energy.
• Haryana and Punjab maintain strong agricultural output while expanding services and industrial activity.
• Delhi (NCT) continues to post high per-capita income, driven by services, trade, and government activity.

Emerging and Catch-up States

Several states with lower economic bases are witnessing gradual transformation:

• Madhya Pradesh and Chhattisgarh benefit from agriculture, mining, and industrial investments.
• Bihar shows steady improvement through public infrastructure spending and social sector investment.
• Assam and other North-Eastern states are gaining from connectivity projects, tourism, and logistics-led growth.

Per Capita Income Perspective

The Survey highlights that smaller states and Union Territories such as Goa, Delhi, Sikkim, and Chandigarh continue to record higher per-capita income levels, reflecting better living standards despite smaller population sizes.

Key Themes Impacting States

The Economic Survey identifies several cross-cutting themes influencing state economies:

• Infrastructure-led growth through capital expenditure
• Manufacturing push under PLI schemes
• Employment generation and skill development
• Digital public infrastructure expansion
• Green energy and climate-resilient growth

States that align faster with these reforms are likely to attract higher investments and job creation.

Conclusion

The Economic Survey 2025–26 underlines that India’s growth story is increasingly state-driven, with diverse regional strengths contributing to national resilience. As India prepares for the next phase of economic expansion, cooperative federalism, competitive reforms, and state-level innovation will remain key to sustaining high growth.

— News Desk