Telangana, Tamil Nadu and Rajasthan recorded the highest growth in real gross state domestic product (GSDP) in FY24 among the 10 largest states ranked on the basis of GSDP, an analysis of recent estimated data released by MoSPI revealed.
In FY24, Telangana, the ninth largest state, saw its economy grow at 9.2% and its real GSDP reached Rs 7.9 lakh crore, faster than the national GDP growth rate of 8.2%. Tamil Nadu, the third largest state, saw its economy grow at 8.2% and reach Rs 1.57 lakh crore. Rajasthan, in the seventh position, grew by 8%.
A sectoral analysis shows that the services sector, which is the highest contributor to GVA among all the large states, contributed to the growth of the states. Tamil Nadu’s services sector, which contributed 52% of the total GVA, grew by 9%, while Telangana’s services sector, which contributed 63%, grew by 11%, according to MoSPI data. Maharashtra’s services sector growth slowed, growing at just 9% against 13% in FY23.
Top States
While these states have grown the most, Maharashtra, with a real GSDP of Rs 24,100 lakh crore, remains India’s largest economy. Estimates for Gujarat, historically the second-largest state, are not yet available but based on budget estimates, it is likely to retain its second position. Uttar Pradesh and Karnataka are neck and neck for the fourth and fifth positions, with Uttar Pradesh’s GSDP just Rs 1,300 lakh crore higher than that of Karnataka.
Paras Jasrai, senior economic analyst at India Ratings and Research, said the agriculture sector performed poorly in most states in FY24 as El Nino weather slowed growth in some states. “In Tamil Nadu, agriculture, construction and real estate (within the services sector) appear to have boosted overall growth. Telangana too saw a recovery in growth in FY24 as real estate and other services drove growth apart from the manufacturing sector, which was sluggish between FY20 and FY23,” he added.
