Maha,K’taka, and Gujarat Likely to Achieve $1 Trillion Economy by FY39:Ind-Ra Report

Ira Singh
Khabar Khabaron Ki,09 April’24

Maharashtra, Karnataka and Gujarat are likely to hit the $1 trillion economy mark by FY39 if the pace of growth in these states remain similar to what was recorded in the past seven years, India Ratings and Research (Ind-Ra) said in a report on Monday.

India’s eight states will have an over $1 trillion economy as the country moves towards becoming a developed nation by FY47.

To achieve the $1 trillion-mark, Karnataka would require a nominal gross state domestic product (GSDP) growth (in USD terms) of 8.4% annually till the financial year 2038-39. Between FY16 to FY23, Karnataka posted an average annual GSDP growth of 8.4% in nominal dollar terms, stated report.Maharashtra, which is the biggest state economy, can achieve the $1 trillion GSDP feat by FY39 with an average annual growth of 5.5%, while Gujarat requires a growth of 8.3%. These are the same growth that these states have recorded between FY16 to to FY23, said Paras Jasrai, Senior Analyst at Ind-Ra.

After Maharashtra, Karnataka and Gujarat, Tamil Nadu would be the next to reach $1 trillion in FY41, if it sustains the estimated nominal GSDP growth (USD terms) of 7.2% same as during FY16-FY23 in the coming years.

However, all these states have set targets to achieve a $1 trillion economy much ahead.Ind-Ra’s estimates show that India would have eight sub-national economies which would hit the $1 trillion mark by FY47.

Uttar Pradesh is estimated to reach $1 trillion by FY42, subject to its nominal GSDP growth (USD terms) growing at an estimated CAGR of 7.1%, like during FY16-FY23. UP though is targeting to attain it by FY28. For this, its nominal GSDP (in USD terms) will have to grow at a CAGR of 29.0% from FY24.

Other states that are likely to reach $1 trillion-mark before FY47 are Madhya Pradesh, Telangana and Andhra Pradesh, provided they maintain their nominal GSDP growth (in USD terms) of 9.3%, 9.0% and 8.3%, respectively, like during FY16-FY23, onwards of FY24,stated report.

As these states continue to leverage their strengths, foster innovation, and enhance competitiveness, they are poised to not only drive regional growth but also contribute significantly to India’s emergence as a global economic powerhouse. With concerted efforts from both the public and private sectors, the realization of this ambitious goal appears increasingly achievable, heralding a new era of prosperity and development for the nation.