The wealth of states of India is defined after measuring the economic and social health indicators like Gross State Domestic Product, Revenue of State, and Per Capita Income. In this article, we will discuss India’s top 10 richest states and figure out the main income stream of Indian states.
Top 10 Richest States in India (2023)
1) Maharashtra
Maharashtra, India’s economic capital, is India’s richest state with a GSDP of US$366.67 billion FY 2020–21. The state also ranks in 3rd position in terms of having the largest urban population; about 45% of the state population of Maharashtra lives in cities. Agriculture is a key sector of the state that contributes 51% of the state’s economy. In contrast, the service and industry sectors add 40% and 9% of the state’s economy. The key pillars of Maharashtra’s economy are its manufacturing, mass media, technology, fashion, tourism, and international trade.
2) Tamil Nadu
Tamilnadu is the second richest state in India, with a GSDP of US$ 265.49 billion. Over 50% of the state’s population lives in cities. Its service sector contributes 53% of the state’s GDP, whereas agriculture and industry contribute 13% and 34%. The major industries of this second-richest state of India are the textile, leather, chemical, pharmaceuticals, automobile, and garment sectors.
3) Gujarat
Gujarat is the third richest state of India, with the estimated Gross State Domestic Product of US$ 259.25 billion FY 22. Agriculture and industry are the main streams of revenue of this western state of India. Gujarat also has the world’s largest shipbreaking yard, as well as the refinery factory of Reliance Industries. Despite this, the state is a large producer of cotton, almonds, and tobacco. About 33% of medicines manufactured in India are made in Gujarat. According to IBEF, agriculture, industry, and sector contribute 19%, 45%, and 36% of the state’s GDP.
4) Karnataka
Karnataka is another rich state in India, with a GSDP of US$ 247.38 billion. The major income source of this south Indian state is the service sector which contributes 64% of the state’s economy. In contrast, agriculture and industry share 10% and 26%. The state is home to many famous and large enterprises like BEL, Hindustan Machine Tools, and Indian Telephone Industry. Additionally, the automobile, agro, aerospace, and biotech industries are the economic strengths of this state.
5) Uttar Pradesh
The Gross Domestic Product of Uttar Pradesh is US$ 234.96 billion. In the past few years, many cities of Uttar Pradesh, like Noida and Ghaziabad, have developed exceptionally. Therefore, many leading companies have opened their offices there. Agriculture, industry, and services contribute 24%, 26%, and 50% of the state’s GDP. Further, Uttar Pradesh is the largest producer of food grains that shares nearly 18% of countries total food grain production.
6) West Bengal
West Bengal’s GDP stood at US$ 206.64 billion in FY 2020–21. The economy of this Indian state is mainly based on agriculture. But in recent years, the service sector has also grown. According to IBEF, agriculture contributes 21% to its GSDP, whereas the industry and service sector shares 26% and 53%. Moreover, West Bengal is the second-largest producer of tea and the largest producer of potatoes.
7) Rajasthan
Rajasthan is a culture and mineral-rich state of India. This Indian state has gold, limestone, rock phosphate, copper, and silver deposits. Further, the state is also the second largest producer of cement across the country. In 2020–21, the GDP of Rajasthan stood at US$ 161.37 billion. Agriculture amounts to 44% of the state’s GDP, whereas industry and service sectors contribute 8% and 47%.
8) Telangana
Telangana has also secured its place in this list of the richest states of India. Two major rivers, Krishna and Godavari, maintain proper irrigation in most parts of this south Indian state. IT and biotechnology industries are key pillars of this state’s economy, allowing it to export IT solutions and biotechnology to global markets. The state has about 68 special economic zones and several deposits of minerals. If we talk about its GDP, it is estimated at US$ 157.35 billion. In its economy, agriculture contributes 55%, industry 17%, and the service sector contributes 26% of the state’s GDP.
9) Andhra Pradesh
Andhra Pradesh’s economy is mainly dependent on agricultural activities. Around 62% of the state’s population is directly or indirectly involved in various agricultural activities. The state is also described as one of the best states in India in terms of starting a business. Agriculture, industry, and service sector contribute 55%, 10%, and 35% of the state’s GDP.
10) Madhya Pradesh
The GSDP at the current price of Madhya Pradesh was estimated at US$126.40 billion in 2020–21. The state’s GDP has grown by 13.78% over the last five years. Madhya Pradesh is known for its rich biodiversity and mineral deposits. Moreover, it’s the only diamond-producing state in India. In the state’s economy, the agriculture sector contributes 62%, whereas the industry and service sector adds up to 5% and 37%, respectively.
Summary
Maharashtra, Tamil Nadu, Gujarat, Karnataka, Uttar Pradesh, and West Bengal are some of the richest states in India. With their rich biodiversity, cultural history, agricultural activities, and substantial initiatives to boost industry and IT sector, these states have been described as one of the richest states of India.
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