Maharashtra, Karnataka and Gujarat to become $1 trillion economies by FY39: Report

Similarly, Gujarat and Karnataka are aiming to hit the $1 trillion mark by FY31 and FY33, respectively. To achieve this, states would have to maintain their nominal GSDP (in USD terms) CAGR at 17.4% and 13.5%, respectively, from FY24. As per Ind-Ra’s estimates, India would have eight sub-national economies which would hit the $1 trillion mark by FY47. Tamil Nadu would be next in line to hit the $1 trillion mark by FY41 if it manages to sustain its estimated GSDP growth rate at 7.2%, which is around the same rate as FY16-FY23. However, Tamil Nadu has set a formidable target of planning to achieve the same feat by FY31, for which its nominal GSDP has to grow at a CAGR of 16.6% from FY24.

Other states like Madhya Pradesh, Telangana, and Andhra Pradesh are on track to reach the $1 trillion economy mark by FY47, given that they maintain nominal GSDP growth rate (in USD terms) of 9.3%, 9.0%, and 8.3%, respectively, after FY24. Ind-Ra report highlighted that the top 5 states in FY23 were the same as those in FY14, only their rankings were shuffled. Karnataka displaced Uttar Pradesh to bag the mantle as the third-largest state economy of India. Maharashtra remained the largest, followed by Tamil Nadu. Gujarat came in at the fifth position followed by West Bengal and Rajasthan.