“Their policy frameworks are capable of influencing India’s rise as a global manufacturing hub,” according to the report titled Building Block of India’s Prosperity.
The forecast of $10.6 trillion considers the likelihood of Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka achieving an economic size of around $1 trillion between 2030 and 2035.
The report highlights that nine out of 18 major states have a per capita GDP above the all-India average of $2,547. These include Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, and Telangana. In terms of growth, four states – Assam, Gujarat, Karnataka, and Odisha – have recorded a five-year real GDP compound annual growth rate (CAGR) higher than the national average of 6.1%. Seven states, including Assam, Bihar, Odisha, and Uttar Pradesh, have capital expenditure as a percentage of GDP above the national average of 3.2%.
However, the report also noted key challenges that vary across states. These include geographical and natural advantage/disadvantage, governance issues, capacity constraints, policy implementation, fiscal capacity and debt burden, financial autonomy, and infrastructure deficits and disparities.
