The survey said there is a need to focus on industrial strategies appropriate to unique geographies like the Northeast, adding that this would also be required to provide better leverage to all states to use their industrial sectors to generate higher income levels for their populations.
The survey pointed out that construction activity, which is closely linked with infrastructure development, urbanization, and real estate trends, also shows inter-state differences.
In this context, it indicated Kerala is comparatively less industrial than many other states but it is a positive outlier in terms of construction activity, which contributes about half of its industrial gross state value added (GSVA).
The survey analysed that the mining sector contributes about 8% to the total industrial output. It specified that the mining activity is highly concentrated within the top five states—Assam, Chhattisgarh, Gujarat, Maharashtra and Odisha, accounting for about 60% of the all-state mining GSVA.
The Economic Survey 2025, quoting varied research papers, highlighted that state-level policies play a crucial role in shaping the economic growth patterns across Indian states.
It further emphasized that factors like the regulatory environment, infrastructure development, and state-level reforms have been shown to significantly influence industrial growth patterns.
The survey pointed to the quintessential aspect that states should prioritize business reforms to achieve buoyancy in some industrial or service sectors.
It asserted that states should make it easier for businesses to commence operations and grow, resulting in faster convergence of living standards and per capita incomes.
Economic Survey 2025, industrialization, Economy, Nirmala Sitharaman, Budget 2025
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