Maharashtra remains India’s largest economy but posts slowest growth among top four states

Maharashtra continues to remain India’s largest state economy in absolute terms, but its economic growth has been the slowest among the country’s four biggest state economies over the past four years, according to official data.

The state’s Gross State Domestic Product (GSDP) is projected at Rs 42,67,771 crore in 2024-25, the highest among all states, reported PTI. However, its growth rate since the post-COVID period has lagged behind Karnataka, Gujarat and Tamil Nadu.

Between 2021-22 and 2024-25, Maharashtra’s GSDP grew by nearly 43 per cent. This places it behind Karnataka, which recorded the fastest expansion among the four major state economies.

Karnataka’s GSDP rose from Rs 17,02,227 crore in 2021-22 to a projected Rs 28,09,063 crore in 2024-25, reflecting nearly 65 per cent growth. The state’s strong technology and services sector, centred around Bengaluru, has been a major driver of this expansion.

Gujarat posted the second-fastest growth among the four states, with GSDP rising nearly 48 per cent from Rs 18,79,826 crore in 2021-22 to Rs 27,90,000 crore in 2024-25. The growth has been supported by the state’s robust industrial and manufacturing base.

Tamil Nadu recorded around 47 per cent growth over the same period. Its GSDP increased from Rs 21,36,351 crore in 2021-22 to Rs 31,55,096 crore in 2024-25, making it the closest competitor to Maharashtra in terms of total economic size.

Maharashtra’s GSDP expanded from Rs 29,81,024 crore in 2021-22 to Rs 42,67,771 crore in 2024-25. While this represents an addition of roughly Rs 12.86 lakh crore — the largest absolute increase among the four states -- its percentage growth remains the lowest.

Despite the slower growth rate, Maharashtra retains a substantial lead in overall economic size. Its projected GSDP for 2024-25 is over Rs 11 lakh crore higher than Tamil Nadu, more than Rs 14 lakh crore ahead of Gujarat and over Rs 15 lakh crore above Karnataka.

The four states -- Maharashtra, Tamil Nadu, Karnataka and Gujarat — are widely regarded as the principal engines of India’s economic growth.

“These three states (Karnataka, Gujarat and Tamil Nadu) have received massive investments, while their homegrown businesses such as startups have also contributed to their GSDP. As these companies continue to grow, they will further boost the states’ economies,” an expert said.

However, he noted that in Maharashtra’s case, the investments the state has attracted during the same period are yet to fully translate into measurable gains in GSDP.

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