Richest States in India- Top 10 Wealth Hotspots in India

With the help of this guide, discover the richest states in India; scroll down to knowwhere wealth and prosperity converge in vibrant and dynamic regions of India.

by Krishika M

Updated Jun 20, 2023

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Richest States in India- Top 10 Wealth Hotspots in India
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Richest States in India

India, with its vast and diverse landscape, is home to states that showcase varying degrees of economic prosperity. Each state contributes to the country's overall development and exhibits its unique strengths in different sectors. As we delve into the topic of the richest states in India, we will explore the key factors that contribute to their economic success and highlight their significant achievements.

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S.no.

States

GSDP

1

Maharashtra

$ 366.67 billion

2

Tamil Nadu

$ 265.49 billion

3

Gujarat

$ 259.25 billion

4

Karnataka 

$ 247.38 billion

5

Uttar Pradesh

$ 234.96 billion

6

West Bengal

$ 206.64 billion

7

Rajasthan

$ 161.37 billion

8

Telangana

$ 157.35 billion

9

Andhra Pradesh

$ 138.19 billion

10

Madhya Pradesh

$ 126.40 billion

Top 10 Richest States in India

The wealth of a state is typically measured by its Gross State Domestic Product (GSDP), which reflects the value of goods and services produced within its boundaries. Factors such as industrial growth, agricultural productivity, services sector development, infrastructure, and investment climate play pivotal roles in determining a state's economic standing.

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In our exploration, we will discover the states that have emerged as economic powerhouses, propelling India's growth story. These states have harnessed their resources, embraced innovation, and attracted investments, leading to remarkable economic progress and improved living standards for their residents.

1. Maharashtra ($366.67 billion)

Maharashtra, the richest state in India, holds a prominent position in the country's economic landscape. The state capital, Mumbai, is widely recognized as the economic capital of India. Maharashtra's Advance estimate of Gross State Domestic Product (GSDP) for the year 2020-21 stands at Rs. 26.62 trillion (equivalent to US$ 366.67 billion). With a significant urban population, Maharashtra ranks as the third-highest state in terms of urban residents, with 45% of its population living in cities.

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The state's economic prosperity is attributed to various strengths across different sectors. Maharashtra excels in manufacturing, international trade, mass media, aerospace, technology, petroleum, fashion, apparel, and tourism. These industries have contributed to the state's economic growth, attracting investments, generating employment opportunities, and fostering innovation.

Agriculture plays a crucial role in Maharashtra's economy, contributing 51% to the state's GSDP. The state is known for its agricultural productivity, with diverse crops, horticulture, and allied activities. The agricultural sector supports rural livelihoods, ensures food security, and contributes significantly to the state's overall economy.

The industrial sector holds a substantial share in Maharashtra's economy, contributing 9% to the state's GSDP. The manufacturing sector, in particular, thrives in Maharashtra, encompassing various industries such as automobiles, textiles, pharmaceuticals, chemicals, and engineering. The state's strategic location, well-developed infrastructure, and a skilled workforce have attracted numerous industries, further strengthening its industrial prowess.

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Richest States in India- Top 10 Wealth Hotspots in India

2. Tamil Nadu ($265.49 billion)

Tamil Nadu, the second wealthiest state in India, has recorded a Gross State Domestic Product (GSDP) of Rs. 19.43 trillion (equivalent to US$ 265.49 billion). With over 50% of its population residing in cities, Tamil Nadu constitutes 9.6% of the urban population of the entire country. The state's GDP is primarily driven by its service sector, manufacturing sector, and agriculture.

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Tamil Nadu's service sector plays a significant role in its economic growth, contributing 45% to the state's GDP. This sector encompasses a wide range of activities, including trade, transportation, finance, hospitality, healthcare, education, and various professional services. The state's urban centers, such as Chennai, are vibrant hubs of commercial activities and contribute to the service sector's prominence.

The manufacturing sector holds a substantial share in Tamil Nadu's economy, accounting for 34% of the state's GDP. The state has strengths in various industries, including automobiles and auto components, engineering, pharmaceuticals, garments, textile products, leather products, and chemicals. These industries have attracted investments, generated employment opportunities, and fostered technological advancements, contributing to the state's economic growth.

Agriculture also plays a role in Tamil Nadu's economy, contributing 21% to the state's GDP. The agricultural sector encompasses crop cultivation, horticulture, and allied activities. While the contribution of agriculture to the state's GDP is relatively modest, it remains an essential sector, supporting livelihoods and ensuring food security for the population.

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Richest States in India- Top 10 Wealth Hotspots in India

3. Gujarat ($259.25 billion)

Gujarat, a western state of India, has estimated its Gross State Domestic Product (GSDP) to be Rs. 18,79,826 crore (equivalent to US$ 259.25 billion) during 2020 - 2021. The state's primary sources of income are agriculture and industry.

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Gujarat boasts several notable industrial and economic features. One such feature is the world's largest ship-breaking yard near Bhavnagar in Alang, which contributes to the state's industrial prowess. Furthermore, Gujarat is home to Reliance Petroleum's refinery in Jamnagar, further solidifying the state's position in the refining and petrochemical industry.

The state of Gujarat is a major producer of various commodities. It has a prominent presence in tobacco, cotton clothes, and almonds production. Additionally, Gujarat plays a significant role in the pharmaceutical industry, manufacturing approximately one-third of the total medicines produced in India. The strengths of Gujarat's economy lie in its pharmaceutical, chemical, refining and petrochemical, ceramics, textiles, and automobile industries.

In terms of economic composition, agriculture contributes approximately 19% to Gujarat's GSDP. The agricultural sector includes various activities such as crop cultivation, horticulture, and animal husbandry. while agriculture holds a significant position in the state's economy, the industrial sector dominates.

The industrial sector plays a crucial role in Gujarat's economic development, contributing around 45% to the state's GSDP. Gujarat's strengths in pharmaceuticals, chemicals, refining and petrochemicals, ceramics, textiles, and the automobile industries have propelled its industrial growth. The state has attracted investments, established manufacturing units, and fostered technological advancements, thereby generating employment opportunities and promoting economic prosperity.

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Richest States in India- Top 10 Wealth Hotspots in India

4. Karnataka ($247.38 billion)

Karnataka, the third richest state in India, has achieved a revised Gross State Domestic Product (GSDP) of Rs. 18.03 trillion (equivalent to US$ 247.38 billion) in the fiscal year 2020-21. The state has exhibited remarkable economic growth, with its GDP growing at the fastest pace among all states in the last decade.

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Karnataka is home to several renowned companies, including Bharat Electronics Limited, Hindustan Machine Tools, and Indian Telephone Industry, which have established their headquarters in the state.

Karnataka possesses a diverse range of strengths across various industries. The state boasts a robust automobile industry, along with strengths in agro, aerospace, textile and garment, biotechnology, and heavy engineering sectors. These industries contribute significantly to Karnataka's economic growth, attracting investments, generating employment opportunities, and fostering technological advancements.

In terms of economic composition, agriculture plays a role in Karnataka's economy, accounting for 10% of the state's GSDP. The agricultural sector encompasses crop cultivation, horticulture, and allied activities. While the contribution of agriculture to the overall GSDP is relatively modest, it remains an essential component of the state's economy, supporting livelihoods and ensuring food security.

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The industrial sector holds a significant share in Karnataka's economy, contributing around 26% to the state's GSDP. This sector encompasses various industries, including manufacturing, technology, biotechnology, and heavy engineering. The presence of prestigious companies and manufacturing units in the state contributes to industrial growth, job creation, and export potential.

The services sector dominates Karnataka's economy, accounting for 64% of the state's GSDP. This sector encompasses a wide range of activities, including trade, transportation, finance, IT services, hospitality, healthcare, education, and professional services. Karnataka's reputation as a hub for information technology (IT) and related services, particularly in cities like Bengaluru, has propelled the services sector to new heights, attracting global investments and fostering innovation.

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Richest States in India- Top 10 Wealth Hotspots in India

5. Uttar Pradesh ($234.96 billion)

Uttar Pradesh, the fifth richest state in India, has achieved a Gross State Domestic Product (GSDP) of Rs. 17.06 trillion (equivalent to US$ 234.96 billion). The state has witnessed rapid development in cities such as Noida and Ghaziabad, attracting numerous companies to establish their branches there. The economy of Uttar Pradesh thrives on various sectors, with handloom, handicrafts, and agriculture being vital sources of income for its people.

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Uttar Pradesh holds a significant position in the agricultural landscape of India. It is the largest producer of food grains in the country, contributing about 17.83% to the total food grain output. This agricultural strength not only sustains the local population but also contributes to the overall food security of the nation.

In addition to agriculture, the industrial sector plays a crucial role in Uttar Pradesh's economy, accounting for 26% of the GSDP. The state has witnessed substantial industrial growth, particularly in cities like Noida and Ghaziabad. These regions have attracted companies from various sectors, resulting in job creation, infrastructure development, and overall economic progress.

The services sector holds a dominant position in Uttar Pradesh's economy, contributing approximately 50% to the state's GSDP. This sector encompasses a wide range of activities, including trade, transportation, finance, hospitality, healthcare, education, and professional services. The presence of key urban centers and the growth of commercial activities contribute to the thriving services sector in the state.

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Richest States in India- Top 10 Wealth Hotspots in India

6. West Bengal ($206.64 billion)

West Bengal, a state in India, recorded a Gross State Domestic Product (GSDP) of Rs 14.44 trillion (equivalent to US$ 206.64 billion) for the fiscal year 2020-21. The state's economy primarily relies on agriculture and medium-scale industries, but the service sector and heavy industries also contribute significantly to its economic strength.

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Agriculture holds a notable position in West Bengal's economy, contributing 21% to the state's GSDP. The state is the second-largest tea-producing region in India and is renowned for the globally acclaimed Darjeeling tea variety. Additionally, West Bengal is the largest producer of potatoes in the country, showcasing its prominence in agricultural output.

The industrial sector plays a crucial role in West Bengal's economic growth, contributing 26% to the state's GSDP. Notably, apart from Durgapur, the state is home to several steel plants, highlighting its involvement in heavy industries. These industries provide employment opportunities and contribute to the state's industrial development.

The service sector is a significant driver of West Bengal's economy, accounting for 53% of the state's GSDP. This sector encompasses a wide range of activities, including trade, transportation, finance, healthcare, education, and professional services. The port of Kolkata, situated in West Bengal, serves as a vital gateway for cargo ships from all over the world, further enhancing the state's economic potential.

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Richest States in India- Top 10 Wealth Hotspots in India

7. Rajasthan ($161.37 billion)

In the fiscal year 2020-21, the Gross State Domestic Product (GSDP) of Rajasthan reached Rs 11.98 trillion (equivalent to US$ 161.37 billion). Rajasthan is known for its abundant mineral resources, which significantly contribute to its economy. The state's economic foundation rests on three pillars: agriculture, mining, and tourism.

Rajasthan is rich in various minerals, including gold, silver, sandstone, limestone, marble, rock phosphate, copper, and lignite. These mineral deposits provide valuable opportunities for mining and related industries, thereby driving economic growth and generating employment.

The agricultural sector plays a vital role in Rajasthan's economy, accounting for 44% of the state's GSDP. This sector encompasses diverse agricultural activities, including crop cultivation, horticulture, animal husbandry, and allied activities. The agricultural sector not only contributes to the state's economy but also supports the livelihoods of a significant portion of the population.

The industrial sector in Rajasthan contributes around 8% to the state's GSDP. Notably, Rajasthan is the second-largest cement-producing state in India, showcasing its significance in the industrial landscape. The state's industrial activities span various sectors, including manufacturing, textiles, handicrafts, and mining-related industries. This sector fosters economic diversification, job creation, and export potential.

Rajasthan is renowned as a major center for tourist attractions due to its rich historical heritage. The state's vibrant culture, architectural marvels, and royal palaces draw tourists from around the world. The tourism sector contributes significantly to the state's economy, generating revenue and employment opportunities. The presence of numerous historical sites, such as forts, temples, and museums, makes Rajasthan an appealing destination for both domestic and international travelers.

Richest States in India- Top 10 Wealth Hotspots in India

8. Telangana ($157.35 billion)

Telangana, a state in India, boasts a Gross State Domestic Product (GSDP) of US$ 157.35 billion. The presence of two major rivers, Krishna and Godavari, has facilitated extensive irrigation facilities across a significant portion of the state. This favorable irrigation infrastructure supports agricultural activities and contributes to the state's overall economic development.

Telangana places special emphasis on the growth of information technology (IT) and biotechnology sectors. The state has emerged as one of the leading IT exporters in India, with a strong presence in software development and IT-enabled services (ITeS). This focus on technology-driven industries has helped create a conducive business environment, attracting investments and fostering job creation in the state.

Furthermore, Telangana boasts an impressive number of 68 special economic zones (SEZs). These zones are designated areas that offer various incentives and facilitations to businesses, encouraging industrial growth and enhancing trade and exports. The presence of these SEZs further supports the state's industrial sector and contributes to its economic prosperity.

Another strength of Telangana lies in its abundant mineral resources. The state is rich in various minerals, which provide opportunities for mining and related industries. This mineral wealth contributes to industrial development and serves as a valuable asset in terms of economic growth and diversification.

Richest States in India- Top 10 Wealth Hotspots in India

9. Andhra Pradesh ($138.19 billion)

Andhra Pradesh, one of the states in India, has a Gross State Domestic Product (GSDP) of US$ 138.19 billion. The state's economy is predominantly driven by agriculture, which engages approximately 62% of the population, either directly or indirectly. This highlights the significance of the agricultural sector in terms of livelihood and sustenance for a substantial portion of the state's residents.

Another notable strength of Andhra Pradesh lies in its significant contribution to shrimp production. The state accounts for 70% of India's total shrimp production, indicating a thriving aquaculture industry. This sector plays a pivotal role in supporting the state's economy and meeting domestic and international demands for seafood products.

In addition to agriculture and aquaculture, Andhra Pradesh possesses strengths in the sectors of mining and tourism. The state's mines yield various valuable resources, including gold, silver, sandstone, limestone, marble, rock phosphate, copper, and lignite. This rich mineral wealth presents opportunities for industrial development and economic diversification.

Regarding the distribution of economic activities, agriculture comprises 55% of Andhra Pradesh's GSDP. The sector encompasses farming, horticulture, livestock, and allied activities, representing a significant contribution to the state's overall economy.

The industrial sector contributes approximately 10% to the state's GSDP. This includes manufacturing, mining, and other related industries that drive job creation, export potential, and overall economic growth.

Richest States in India- Top 10 Wealth Hotspots in India

10. Madhya Pradesh ($126.40 billion)

Madhya Pradesh, a state in India, recorded a Gross State Domestic Product (GSDP) of US$ 126.40 billion for the fiscal year 2020-21, considering the current prices. Over the past five years, the state's GSDP has experienced a Compound Annual Growth Rate (CAGR) of 13.78%, indicating a substantial and consistent economic expansion.

Madhya Pradesh possesses several strengths that contribute to its economic growth. The state is rich in natural resources, particularly in terms of fuel, minerals, and biodiversity. It holds a prominent position as the sole diamond-producing state in the country, which further boosts its economic potential.

The agricultural sector plays a significant role in Madhya Pradesh's economy, accounting for approximately 62% of the state's GSDP. This emphasizes the importance of farming and related activities in driving economic output and providing livelihoods for a substantial portion of the population.

While agriculture holds a dominant position, the industrial sector contributes around 5% to the state's GSDP. This includes manufacturing, mining, and other related industries. Although relatively smaller in comparison to agriculture, the industrial sector plays a crucial role in creating employment opportunities and supporting overall economic development.

The services sector is another vital component of Madhya Pradesh's economy, representing approximately 37% of the state's GSDP. This sector encompasses a wide range of activities such as trade, transportation, hospitality, finance, and professional services. The services industry contributes to economic growth by providing value-added services, generating employment, and attracting investments.

Overall, Madhya Pradesh's diverse economic strengths, including its abundance of natural resources, thriving agriculture sector, status as a diamond producer, and a growing services industry, contribute to its substantial Gross State Domestic Product. The state's consistent economic growth over the past five years highlights its potential as a key player in India's economy.

Richest States in India- Top 10 Wealth Hotspots in India

Which is the Richest State in India?

Maharastra is regarded as the richest state in India. Maharashtra, located in the western region of India, stands as one of the country's wealthiest and most economically dynamic states. With its vibrant capital city, Mumbai, often referred to as the financial and commercial hub of India, Maharashtra has established itself as a prominent player in the nation's economic landscape.

One of Maharashtra's strengths lies in its diverse industries, each making significant contributions to its economic prosperity. Manufacturing, international trade, mass media, aerospace, technology, petroleum, fashion, apparel, and tourism are among the key sectors that have propelled Maharashtra's growth trajectory. The state hosts renowned companies and headquarters, serving as a magnet for investment and business activity.

Maharashtra's position as the wealthiest state in India is a testament to its dynamic economy, driven by diverse industries, a strong services sector, and a robust agricultural base. The state's remarkable progress in various sectors, along with the influence of urban centers, cements Maharashtra's status as a key contributor to India's economic prosperity.



Disclaimer: The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

Richest States in India- FAQs

1. What factors contribute to a state being considered one of the richest in India?

Several factors contribute to a state's classification as one of the richest in India. These include a strong industrial base, high agricultural productivity, a thriving services sector, strategic geographic location, robust infrastructure, favorable investment climate, skilled workforce, and a conducive business environment.

2. How is the wealth of a state measured?

The wealth of a state is typically measured using the Gross State Domestic Product (GSDP), which quantifies the total value of goods and services produced within the state's boundaries.

3. Which states are currently considered the richest in India?

The richest states in India include Maharashtra, Tamil Nadu, Gujarat, Karnataka, and West Bengal. These states have consistently demonstrated strong economic growth, high levels of industrialization, diverse sectors of excellence, and significant contributions to the national economy.

4. What are some common strengths or sectors where these wealthy states excel?

The richest states in India showcase strengths in various sectors. Maharashtra excels in manufacturing, international trade, mass media, aerospace, technology, petroleum, fashion, apparel, and tourism. Tamil Nadu is known for automobiles, engineering, pharmaceuticals, textiles, and garments. 

5. How does the economic prosperity of these wealthy states benefit the overall development of India?

The economic prosperity of the richest states in India positively impacts the overall development of the country. These states contribute significantly to India's Gross Domestic Product (GDP) and generate substantial tax revenues.

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