NEWS – India Ratings and Research (Ind-Ra) predicts that Maharashtra, Karnataka, and Gujarat are likely to achieve a $1 trillion economy by FY39 based on their past growth rates. Tamil Nadu is expected to follow suit by FY41

HIGHLIGHTS

Growth Requirements and Targets:

• Karnataka: Needs 8.4% annual GSDP growth in USD terms till FY39.
• Maharashtra: Requires 5.5% annual growth; targets $1 trillion by FY28.
• Gujarat: Requires 8.3% annual growth; targets $1 trillion by FY31.
• Tamil Nadu: Aims for 7.2% annual growth; targets $1 trillion by FY31.

Future Outlook and Challenges:

• Uttar Pradesh (UP): Aims for FY28 target with a growth requirement of 29.0%.
• Other States: Madhya Pradesh, Telangana, and Andhra Pradesh also on track for trillion-dollar economies by FY47.

Current State Rankings and Changes:

• Top Five Economies: Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Uttar Pradesh in FY23.
• Economic Shuffles: Karnataka surpassed UP to become the third-largest economy.
• Continued Growth: West Bengal, Rajasthan, Andhra Pradesh, Odisha, and Punjab also show notable economic performance.

Income Classifications and Insights:

• Income Categories: States categorized based on per capita income.
• Notable Classifications: Goa and Sikkim in upper middle-income category; UP and Bihar in low-income group.
• Economic Dynamics: Reflects both growth potential and challenges across different Indian states.