Maharashtra, Karnataka, and Gujarat are frontrunners in India’s race toward achieving the milestone of a $1 trillion economy by fiscal year 2039, according to a recent India Ratings and Research (Ind-Ra) analysis. Dr. Sunil Kumar Sinha, Principal Economist at Ind-Ra mentioned, that driven by strategic initiatives and robust growth, these states are to lead the charge into upper echelons of economic prosperity.
Nominal Gross State Domestic Product (GSDP) growth estimates for Maharashtra, Karnataka, and Gujarat stand at 5.5%, 8.4%, and 8.3%, respectively, between fiscal years 2016 and 2023. Additionally, Maharashtra aims to achieve the trillion-dollar milestone by fiscal year 2028.
Paras Jasrai, Senior Analyst at Ind-Ra, highlighted that besides these three states, Tamil Nadu is also focusing on joining the trillion-dollar league by fiscal year 2041, provided it sustains its estimated nominal GSDP growth of 7.2%.
The analysis, further forecasted that India’s economy is on track to ascend to the upper-middle-income category between fiscal years 2033 to 2036. This would eventually lead India to be a USD 15 trillion economy by fiscal years 2043 to 2047. When achieved, Ind-Ra’s estimates show that India would have eight sub-national economies which would hit the USD1 trillion mark