Maharashtra, Gujarat, Karnataka lead in new state rankings; Goa tops smaller states list

Maharashtra, Gujarat, and Karnataka are India’s top three states based on a study of 50 indicators spread across seven parameters: economic, fiscal, infrastructure, financial development, social, governance, and environment.

According to CareEdge Ratings’ state ranking report, Western and Southern states dominated the top five rankings. “Fiscal, economic, and financial development were the strong points for Western states, while Southern states performed well across the economic, financial development, environment, and governance pillars,” the report stated.

In Group A (large states), Maharashtra topped the chart with a composite score of 56.5, followed by Gujarat at 52.4, and Karnataka at 51.9.


In Group B (North-East, hilly, and smaller states), Goa led with a composite score of 62.1.

In the previous edition (2023), Maharashtra, Gujarat, and Tamil Nadu were the top three states. However, the 2023 and 2025 rankings are not directly comparable due to changes in methodology. Goa has retained its top spot in the current round as well.

“Maharashtra is doing very well in financial development and that's mainly because of Mumbai being the financial capital,” said Rajani Sinha, Chief Economist, CareEdge Ratings.

Financial development scores considered credit penetration, mutual fund and insurance product adoption, and broader financial inclusion.

In the economy sub-category (25% weightage in the composite score), Gujarat ranked first, driven by strong performance in per capita GSDP, FDI inflows, and gross fixed capital formation (investments).

The fiscal sub-category carried the second-highest weightage (20%). Odisha led this category with a score of 71.1, although it ranked ninth overall. “Odisha led the fiscal rankings, faring well in terms of revenue deficit, interest payments (as % of revenue), debt management, outstanding liabilities, and guarantees,” CareEdge stated.

The Northern states of Punjab and Haryana topped the infrastructure rankings due to better scores in per capita power availability, railway density, and net irrigated area (% of net sown area). In contrast, Southern states like Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu excelled in the environment category.

In governance, Andhra Pradesh secured the top spot, driven by high scores in business environment, court conviction rate, timely completion of court trials, and judge strength.

Among Group B states, Goa and Mizoram led the social rankings, attributed to better outcomes in infant mortality and multidimensional poverty rates.