Maharashtra, Gujarat, Karnataka lead 2025 CareEdge state rankings

Maharashtra, Gujarat and Karnataka have emerged as the top-performing states in 2025, with western and southern regions dominating the upper tiers of the latest CareEdge Ratings State Ranking, released on Tuesday.

Now in its second edition, the annual rankings evaluate Indian states across seven pillars—economic, fiscal, infrastructure, financial development, social, governance, and environment—using 50 indicators. 

Maharashtra took the top overall position, bolstered by consistent strength across financial, economic, fiscal and social metrics. Gujarat led in economic performance, while Karnataka excelled in both industrial and environmental indicators. The report highlights a regional pattern: western states ranked high on fiscal and economic parameters, while southern states stood out across governance, environment and social outcomes.

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Goa ranked highest among north-east, hilly and small states, with strong showings in financial development, infrastructure and fiscal indicators. Union territories were not included in the analysis.

“This is a quantitative assessment of states’ potential in terms of sustainable and equitable growth and is also a reflection of the investment attractiveness of these states. The objective of this report is to present a holistic picture that encourages informed decision-making,” said Rajani Sinha, chief economist at CareEdge Ratings.

Gujarat’s top economic rank was driven by strong per capita gross state domestic product (GSDP), high foreign direct investment (FDI) as a share of GSDP, and robust gross fixed capital formation (GFCF) for industries. Maharashtra and Karnataka followed with their high share of industry and services in Gross Value Added (GVA) and notable FDI performance.

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Odisha topped the fiscal pillar, scoring well on revenue deficit, interest payments, debt levels, and fiscal guarantees. Maharashtra also led in financial development, supported by strong credit disbursement by banks and NBFCs, and high penetration of mutual funds and health insurance.

Punjab and Haryana ranked best in infrastructure, with higher scores on per capita power availability, railway density, and net irrigated area. Kerala led on social indicators, while Andhra Pradesh topped the governance pillar, scoring high on business environment, judicial efficiency, and administrative strength.

In environmental performance, Karnataka, Telangana, Andhra Pradesh and Tamil Nadu stood out, with Karnataka leading in air quality and renewable energy, and Telangana scoring well on forest cover changes and potable water access.