Telangana, Tamil Nadu and Rajasthan have recorded the highest growth in real gross state domestic product (GSDP) in FY24 among the 10 largest States ranked according to their GSDP. This is revealed in the analysis of data on recent estimates put out by MoSPI.

In FY24, Telangana, the ninth biggest State, grew its economy at 9.2 per cent to reach real GSDP of ₹7.9 lakh crore. This is faster than national GDP growth of 8.2 per cent. Tamil Nadu, which is the third largest State, grew its economy 8.2 per cent to reach ₹15.7 lakh crore in size. Rajasthan, at seventh spot, grew 8 per cent. 

Sectoral analysis shows that services sector, which contributes the highest to GVA of all the large States, helped in their growth. Tamil Nadu’s services sector, which holds 52 per cent share in total GVA, grew 9 per cent and Telangana’s services sector with 63 per cent share, grew 11 per cent, MoSPI data show. Services underperformed in Maharashtra clocking just about 9 per cent growth relative to 13 per cent in FY23.

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While these States grew the most, Maharashtra at ₹24.1 lakh crore real GSDP continues to the be the largest economy in India. Estimates for Gujarat, which was the second-largest in FY23, is not available yet, but based on its budget estimates, it is likely to hold second spot. UP and Karnataka are neck-to-neck in fourth and fifth spot with UP’s GSDP just ₹130 crore more than that of the latter.

Paras Jasrai, Senior Economic Analyst, India Ratings & Research, said that in FY24, agriculture sector underperformed across most states due to El Nino leading to slower growth in case of few States. “For Tamil Nadu, agriculture, construction and real estate (within services sector) seems to have pushed up overall growth. In Telangana too, growth has picked up in FY24 as real estate and other services have helped in driving growth apart from the manufacturing sector which picked up after witnessing a lull between FY20 and FY23,” he added.

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