Maharashtra has recorded the slowest pace of economic growth among India’s big four states in the past four years, even as it remains the country’s largest state economy with a projected GSDP of Rs 42,67,771 crore in 2024-25.
In the post-Covid period, the state’s GSDP (Gross State Domestic Product) grew by nearly 43 per cent between 2021-22 and 2024-25, trailing Karnataka, Gujarat and Tamil Nadu in growth rate, according to official figures.
In absolute terms, however, Maharashtra leads the four states by a wide margin.
Karnataka, the fastest-growing among the four, posted a near-65 per cent rise in GSDP over the same period. Maharashtra’s growth rate lags Karnataka’s by more than 20 percentage points.
Karnataka’s GSDP was projected to climb from Rs 17,02,227 crore in 2021-22. However, it was projected to grow to Rs 28,09,063 crore in 2024-25, showing a sharp rise in its gross state domestic product.
The southern state’s technology and services sectors, anchored in Bengaluru, have been the primary drivers of this expansion.
Gujarat recorded the second-fastest growth at nearly 48 per cent. Its GSDP rose from Rs 18,79,826 crore in 2021-22 to Rs 27,90,000 crore in 2024-25, backed by a strong industrial and manufacturing base.
Tamil Nadu followed with a growth of around 47 per cent. Its GSDP increased from Rs 21,36,351 crore in 2021-22 to Rs 31,55,096 crore in 2024-25, making it Maharashtra’s nearest rival in absolute size.
Maharashtra, meanwhile, saw its GSDP rise from Rs 29,81,024 crore in 2021-22 to Rs 42,67,771 crore in 2024-25. Despite adding roughly Rs 12.86 lakh crore in absolute terms, the largest addition among the four states, its percentage growth remained the lowest.
Maharashtra’s economic lead over its peers remains substantial. Its projected 2024-25 GSDP is over Rs 11 lakh crore ahead of Tamil Nadu, over Rs 14 lakh crore ahead of Gujarat and over Rs 15 lakh crore ahead of Karnataka.
The big four — 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, when it comes to Maharashtra, the investments the state has received during the same period are yet to be reflected in its GSDP, he added.
