{"id":19454,"date":"2026-05-19T20:56:48","date_gmt":"2026-05-19T15:26:48","guid":{"rendered":"https:\/\/patriotsforumindia.com\/?p=19454"},"modified":"2026-05-19T20:59:25","modified_gmt":"2026-05-19T15:29:25","slug":"19454","status":"publish","type":"post","link":"https:\/\/patriotsforumindia.com\/?p=19454","title":{"rendered":"This steep difference in economic growth\u00a0 is dangerous for national unity. Northern states economic growth needs to be accelerated ."},"content":{"rendered":"

Members may read MSN\/Business Today’s Report . This steep difference in economic growth\u00a0 is dangerous for national unity. Northern states economic growth needs to be accelerated .<\/h1>\n

Rajiv Upadhyay \"\"<\/a><\/h1>\n

5 states, 48% of GDP, one growth engine: India’s economic divide comes into focus msn \/BUSINESS TODAY – Basudha Das<\/h1>\n

\"5<\/p>\n

India\u2019s economic growth story<\/a>\u00a0is increasingly being powered by a small group of states, raising fresh questions about how balanced the\u00a0country\u2019s development<\/a> trajectory really is. Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka and Gujarat together contributed nearly 48% of India\u2019s GDP in FY2025, underscoring a significant concentration of economic activity, according to Client Associates\u2019 State of Indian States:<\/p>\n

The report noted that\u00a0India continues to remain the world\u2019s fastest-growing major economy, with GDP growth projected at 7.5% in FY2026 and 6.8% in FY2027. However, the report highlights widening disparities in income, fiscal stability, employment and economic growth across states. Maharashtra\u2019s economy is 133 times larger than Mizoram\u2019s, while Goa\u2019s per capita income exceeds Bihar\u2019s by more than 8x.<\/p>\n

The report suggested that the next phase of growth may increasingly become a state-level story\u2014one marked by widening gaps in prosperity, investment, competitiveness and fiscal strength.<\/p>\n

India\u2019s \u201cPower Five\u201d<\/strong><\/p>\n

The concentration is particularly visible at the top. According to the report, Maharashtra alone contributes 13.3% of national GDP, reinforcing its position as India\u2019s financial and commercial capital<\/p>\n

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The report also highlighted the growing importance of Uttar Pradesh, describing it as one of India\u2019s most closely watched economic transformations. Uttar Pradesh\u2019s economy is now comparable to Mexico in scale while growing faster than China, making it one of the country’s largest long-term economic opportunities.<\/p>\n

Beyond the traditional leaders, newer growth engines are beginning to emerge. Assam, Uttar Pradesh and Meghalaya have surfaced among India\u2019s fastest-growing state economies, posting growth rates of more than 15% CAGR, signaling that economic momentum is spreading beyond established centers.<\/p>\n

Growth remains uneven<\/strong><\/p>\n

Despite strong national growth numbers, prosperity remains far from evenly distributed.<\/p>\n

The report found a stark divide in per capita income across India. Residents of Goa and Sikkim earn more than eight times the income of Bihar residents, highlighting the scale of regional disparities. Bihar\u2019s per-capita income remains at \u20b969,321, while only 16 states exceed the n<\/p>\n

The findings suggest that economic size alone does not necessarily translate into individual prosperity or broad-based development.<\/p>\n

The same concentration pattern appears in private investment flows. India attracted \u20b94.22 lakh crore in FDI equity inflows in FY2025, representing a 14.7% year-on-year increase. However, five states \u2014Maharashtra, Karnataka, Gujarat, Delhi and Tamil Nadu \u2014 captured 83.3% of all FDI inflows, indicating that capital remains heavily clustered in a handful of regions.<\/p>\n

Still, emerging investment hubs are beginning to gain traction. Haryana and Tamil Nadu posted strong growth in FDI inflows, while Uttar Pradesh and Rajasthan are increasingly attracting investors due to infrastructure development and policy reforms.<\/p>\n

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