
Top 10 fastest-growing major state economies in India over the last 5 years
According to RBI data shared by Business Today, multiple Indian states recorded strong real economic growth between FY20 and FY25 after adjusting for inflation. Assam emerged as the fastest-growing major state economy with 45% growth, as its GSDP increased from ₹2.4 lakh crore to ₹3.5 lakh crore over five years. Tamil Nadu (39%), Karnataka (36%), Uttar Pradesh (35%), and Rajasthan (34%) followed closely behind.
The data also highlights how India’s economic expansion is becoming more broad-based instead of being concentrated in only a few regions. Bihar and Andhra Pradesh both recorded 33% growth, while Chhattisgarh and Jharkhand grew by 31%. Telangana completed the top 10 list with 30% growth between FY20 and FY25.
Interesting to see northeastern states like Assam outperforming many larger economies. Which state do you think has the strongest long-term growth potential over the next decade?