Ever wondered which is the richest state in India? Then you’re in the right place! In this blog we shall look at the top 12 most wealthiest states in India. We’ll also explore the states with the highest GDP per capita, along with an explanation of how the state managed to get its wealth in the first place. So, if you’re interested in learning more about India’s economy or want to find out which state is the wealthiest, check out this blog!
India is a land of extremes. From the snow-capped Himalayas to the scorching Thar Desert, the country is home to a wide range of landscapes and climates. When it comes to wealth as well, India is once again diverse. Continue reading below to find out the richest state in India.
Top 12 Richest States in India
Ready to learn about which states are the richest and why? Continue reading to find out!
According to the advance estimate of GSDP, Delhi is one of the richest states in India with a GDP of Rs 7.98 trillion (US$ 108.33 billion) in 2020-21. Delhi is a popular choice for people to work due to its many job opportunities in various industries such as banking, financial services and insurance (BFSI), construction and real estate, information technology and tourism.
The state’s agricultural sector only accounts for 2% of its GDP while the industrial and services sector make up 12% and 86% respectively. This diversification of the economy has resulted in Delhi being one of richest state in India.
Kerala is one of the states in India that has been able to maintain a high level of economic growth even during tough times. This is largely due to the fact that the state has a diversified economy, with agriculture, industry, and services all contributing significantly to the gross state domestic product (GSDP). The service sector is the largest contributor to Kerala’s economy, accounting for 63 percent of the GSDP. This is followed by industry at 28 percent and agriculture at 8 percent.
Several major corporations and manufacturing plants are headquartered in Kerala, particularly in Trivandrum, Kochi, and Kozhikode. The state is also a major producer of natural rubber and black pepper. Tourism is another important contributor to the state’s economy, accounting for 10 percent of the GSDP.
Handlooms and power looms, rubber, bamboo, coir, khadi and village industries, sericulture, seafood and other marine products, cashew, mining, food processing, spice and spice extracts, IT & electronics are some of the key strengths of Kerala’s economy.
10. Madhya Pradesh
Madhya Pradesh is one of the most populous states in India, with a population of over 75 million. The state has a diverse economy, with agriculture, industry, and services all contributing significantly to GDP. Agriculture is the largest sector, accounting for 62% of GDP, followed by industry at 5% and services at 37%. The state’s economy has been growing rapidly in recent years, with a CAGR of 13.78% over the last 5 years.
This growth has been driven by a number of factors, including the abundant natural resources of the state. Madhya Pradesh is rich in fuel minerals, such as coal and oil, as well as other minerals like diamonds and iron ore.
The state is also a major producer of agricultural commodities, such as wheat, rice, and soybeans. In addition, Madhya Pradesh is home to a large number of biodiversity hotspots and is the only diamond-producing state in the country. These factors have all contributed to the strong economic performance of Madhya Pradesh in recent years. Hence why MP is high on the richest state in India list!
09. Andhra Pradesh
The economy of Andhra Pradesh is mainly based on agriculture, with 62% of the population directly or indirectly engaged in the sector. The state is one of the leading producers of shrimp in India, accounting for 70% of the country’s total production. The World Bank has described Andhra Pradesh as the best state in India in terms of starting a business.
Andhra Pradesh is rich in natural resources, with a thriving mining sector that produces gold, silver, sandstone, limestone, marble, rock phosphate, copper and lignite. The state also has a strong tourism industry, with a number of beautiful beaches and historical sites. In total, agriculture contributes 55 percent to the state’s GDP, while industry and services account for 10% and 35% respectively.
Telangana is one of the top IT exporter states in India, with a GDP of US$ 157.35 billion. The state’s two major rivers, Krishna and Godavari, provide excellent irrigation facilities, making agriculture a key sector of the economy. In recent years, special attention has been paid to developing information technology and biotechnology in Telangana.
There are 68 special economic zones in the state, making it an attractive destination for investment. Telangana also has a rich supply of minerals, making it an important player in the mining industry. These strengths make Telangana an attractive destination for businesses and investors.
Rajasthan’s GSDP stood at Rs 11.98 trillion (US$ 161.37 billion) in 2020-21. It is a mineral-rich state with a large agricultural sector. The economy here is based on agriculture, mining and tourism. The state has gold, silver, sandstone, limestone, marble, rock phosphate, copper and lignite deposits. Rajasthan is the second largest cement producing state in India. Rajasthan is a major center of tourist attraction due to its historical heritage.
The strengths of the state’s economy are its agricultural sector, which employs 44% of the workforce, and the mining sector, which produces gold, silver, sandstone, limestone, marble, rock phosphate, copper and lignite. Tourism is also a major contributor to the economy, with 47% of the workforce employed in the services sector.
06. West Bengal
West Bengal is a state located in the eastern part of India. The economy of the state is mainly based on agriculture and medium-scale industry. However, the service sector and heavy industries also play an essential role in strengthening the state’s economy. West Bengal is India’s second-largest tea-producing state and is home to the globally acclaimed Darjeeling tea variety. WB is the Largest producer of Potato in India.
Apart from Durgapur, there are many steel plants in the state. The port of Kolkata carries cargo ships from all over the world. The strengths of West Bengal’s economy are its large agricultural and industrial sectors. Agriculture accounts for 21% of the state’s GDP, while industry 26%. These two sectors employ a majority of the state’s population.
The service sector is also sizeable, accounting for 53% of GDP and providing jobs for most of the remaining people. However, agriculture and industry are not evenly distributed across the state. Most of the agricultural output comes from the northern districts, while the industry is concentrated in the south and southwest. This regional imbalance has led to tensions between different parts of the state.
05. Uttar Pradesh
Uttar Pradesh is the fifth richest state in India, with a Gross State Domestic Product of Rs. 17.06 trillion (US$ 234.96 billion). The state has seen rapid development in recent years, with many cities such as Noida and Ghaziabad becoming increasingly prosperous.
This is due in part to the influx of companies who have opened branches here, attracted by the state’s strong business environment. Agriculture, handloom, and handicrafts are also very important sources of income for the people of Uttar Pradesh. The state is the largest producer of food grains in India, accounting for about 17.83% of the country’s total food grain output.
Agriculture contributes 24% to the state’s economy, while industry and services contribute 26% and 50% respectively. The strong and diverse economy of Uttar Pradesh is one of the state’s key strengths.
Karnataka is the fourth richest state in India, with a GSDP of Rs. 18.03 trillion (US$ 247.38 billion) in 2020-21. Its GDP has grown at the fastest pace in the last decade compared to other states of the country, making it an attractive destination for businesses and investment. The state’s strengths lie in its automobile, agro, aerospace, textile and garment, biotech, and heavy engineering industries.
Agriculture contributes 10% to the state’s GDP, while industry and services contribute 26% and 64% respectively. Karnataka is also home to many famous companies like Bharat Electronics Limited, Hindustan Machine Tools, Indian Telephone Industry, which have their headquarters in the state.
With its strong economic growth and rich natural resources, Karnataka is poised to become one of the leading states in India in the years to come.
Gujarat is a western state of India with a population of over 60 million. The state’s economy is primarily driven by agriculture and industry, with agriculture making up 19 percent of the GDP and industry accounting for 45 percent.
The state is also home to a large number of pharmaceutical and chemical companies, as well as the world’s largest ship breaking yard in Alang. Gujarat is a major producer of tobacco, cotton clothes and almonds, and one-third of all medicines consumed in India are made in the state.
The state has a number of strengths that make it an attractive investment destination, including its large pool of skilled workers, proximity to ports and waterways, and supportive government policies.
02. Tamil Nadu
Tamil Nadu is the second richest state in India, with a GSDP of Rs. 19.43 trillion (US$ 265.49 billion). More than 50 percent of the state’s population lives in cities, constituting 9.6% of the urban population of the entire country. The state has a strong service sector, accounting for 45 percent of its GDP, followed by the manufacturing sector (34%) and agriculture (21%).
Tamil Nadu is a major hub for the automotive and auto components industries, as well as engineering, pharmaceuticals, garments, textile products, leather products and chemicals. The state’s agricultural sector contributes 13% to its GDP, with key crops including rice, sugarcane, Millets, pulses, groundnuts and cotton.
Industry accounts for 34% of Tamil Nadu’s GDP, with major industries including textiles, automobiles and auto components, engineering and pharmaceuticals. The services sector is the largest contributor to Tamil Nadu’s GDP, accounting for 53%. Tamil Nadu is one of the most industrialized states in India and has a well-developed service sector. As a result, it is one of the richest states in India.
Given that Mumbai is the economic capital of India, it is no surprise that Maharashtra is the richest state in the country. With a GSDP of Rs. 26.62 trillion (US$ 366.67 billion), Maharashtra ranks ahead of all other states in India. The state’s strengths lie in its manufacturing, international trade, mass media, aerospace, and technology sectors.
In addition, Maharashtra is home to some of the world’s most famous tourist destinations, including the Ajanta and Ellora caves, the Gateway of India, and Colaba Causeway. With so much to offer, it is no wonder that Maharashtra tops the richest state in India list.
Richest State in India: FAQs
Q1. Which is the richest and poorest state in India?
India is a country with a wide range of wealth and poverty. The richest state in India is Maharashtra, while the poorest state is Bihar. The average person in Maharashtra is 5.4 times richer than the average person in Bihar. The disparity between the richest and poorest states in India is one of the largest in the world.
Q2. Which state is the third richest in India?
Gujarat is the third richest state in the country. The state has Alang, which is the world’s largest shipbreaking yard, as well as a huge number of pharmaceutical and chemical firms. Gujarat is a major producer of tobacco, cotton clothing, and almonds, and it also produces one-third of all medications consumed in India. To find out more about the richest state in India, scroll up!
Richest State in India: Conclusion
In the race to be the richest state in India, Maharashtra is at the top. Thanks to a combination of industry, travel/tourism and other local practices, various states in the country have managed to exponentially increase their GSDP. It will be interesting to watch trends of growth and see which state emerges as the next richest state in India. Hope you enjoyed reading the blog and are now aware of top 12 wealthiest states in the country!