Maharashtra, Gujarat, Karnataka Lead 2025 Careedge State Rankings | Today news

Maharashtra, Gujarat and Karnataka emerged as the top performing states in 2025, with Western and southern regions dominating the upper levels of the latest CareEEDGE rating ranking Tuesday. Now in the second edition, the annual ranking Indian states over seven pillars – economic, fiscal, infrastructure, financial development, social, management and environment – using 50 indicators. Maharashtra took the best overall position, strengthened by constant strength on financial, economic, fiscal and social statistics. Gujarat led in economic performance, while Karnataka excelled in both industrial and environmental indicators. The report emphasizes a regional pattern: Western states are high on fiscal and economic parameters, while the southern states stood out on management, environment and social outcomes. Goa was the highest among the north-eastern, hilly and small states, with strong performances in financial development, infrastructure and fiscal indicators. Union areas are not included in the analysis. “It is a quantitative assessment of the potential of states in sustainable and fair growth and is also a reflection of the investment’s attractiveness of these states. The purpose of this report is to present a holistic picture that encourages informed decision -making,” says Rajani Sinha, Chief Economist of Caredge Ratings. Gujarat’s highest economic rank was driven by a strong gross state of the gross state (GSDP) per capita, high direct foreign investment (FDI) as a share of GSDP, and a strong gross fixed capital formation (GFCF) for industries. Maharashtra and Karnataka followed with their large part of the industry and services in gross added value (GVA) and notable FDI performance. Odisha achieved the fiscal pillar above the income deficit, interest payments, debt levels and fiscal guarantees. Maharashtra also led in financial development, supported by strong credit payout by banks and NBFCs, and a high penetration of mutual funds and health insurance. Punjab and Haryana were the best in infrastructure, with higher scores on per capita availability, railroad density and net irrigated area. Kerala led on social indicators, while Andhra Pradesh achieved the management pillar above the operating environment, judicial efficiency and administrative power. In environmental performance, Karnataka, Telangana, Andhra Pradesh and Tamil Nadu stood out, with Karnataka leading in the air quality and renewable energy, and Telangana performed well with changes in the forest cover and access to the water. First published: 29 Apr 2025, 05:07 IST