Western and Southern States Lead the Way
Maharashtra has been ranked the best-performing large state in the CareEdge State Rankings 2025, securing a composite score of 56.5. The rankings, released on April 29, highlight the dominance of Western and Southern states across multiple development parameters.
Following Maharashtra in the top five are Gujarat (52.4), Karnataka (51.9), Telangana (51.4), and Tamil Nadu (50.1). The annual rankings, now in their second edition, evaluate the performance of Indian states using 50 quantitative indicators across seven pillars: economic, fiscal, infrastructure, financial development, social, governance, and environment.
Maharashtra emerged as a leader primarily due to its strong performance in the financial development pillar, attributed to robust credit disbursements by banks and NBFCs, along with high penetration of mutual funds and health insurance. Gujarat, which ranked second, topped the economic pillar with impressive figures in per capita GSDP, foreign direct investment inflow, and industrial capital formation.
Karnataka stood out for its environmental performance, earning high marks in air quality and renewable energy usage. It also fared well in governance and industrial metrics. Telangana, placed fourth, demonstrated strength in financial development and environmental sustainability, particularly with notable progress in forest cover and access to potable water. Meanwhile, Tamil Nadu, which slipped from third in 2023 to fifth in 2025, continued to perform strongly in governance and environmental pillars.
CareEdge clarified that the 2023 and 2025 rankings are not directly comparable due to changes in methodology, including a longer normalization period and the inclusion of additional indicators to provide a more comprehensive assessment.
Other noteworthy performers include Haryana (48.5), which, along with Punjab (43.9), led the infrastructure pillar due to high per capita power availability, railway density, and net irrigated area. Kerala (46) topped in social indicators, with high scores in health and education. Andhra Pradesh (45.5) ranked highest in governance, credited with a favorable business environment, judicial efficiency, and administrative capacity. Odisha (44.3) led the fiscal pillar, demonstrating strong revenue deficit control, debt management, and prudent fiscal guarantees.
At the lower end of the spectrum, Bihar (34.8), Jharkhand (36), and Madhya Pradesh (36.8) occupied the bottom three spots among large states, reflecting persistent challenges in economic growth and infrastructure development.
In the smaller states category (Group B), Goa led the rankings with a composite score of 62.1, driven by excellent performance in financial development, infrastructure, and social metrics.
The report excluded Union Territories and aims to offer a data-driven view of states’ long-term growth prospects and investment potential.
“This quantitative assessment captures states’ potential for sustainable and equitable growth, reflecting their investment attractiveness,” said Rajani Sinha, Chief Economist, CareEdge Ratings. Mehul Pandya, Managing Director and Group CEO, CareEdge, added that the rankings aim to support informed policymaking to address India’s diverse state-level development dynamics.
The CareEdge State Rankings 2025 not only reaffirm the leadership of Maharashtra but also underscore the consistent strength of Western and Southern states, while highlighting the need for targeted improvements in lagging regions to ensure balanced national growth.
Here’s a clear list of the CareEdge State Rankings 2025 for large states, based on composite scores:
Top 10 Large States
- Maharashtra – 56.5
- Gujarat – 52.4
- Karnataka – 51.9
- Telangana – 51.4
- Tamil Nadu – 50.1
- Haryana – 48.5
- Kerala – 46.0
- Andhra Pradesh – 45.5
- Odisha – 44.3
- Punjab – 43.9
Bottom 3 Large States
- Madhya Pradesh – 36.8
- Jharkhand – 36.0
- Bihar – 34.8
Top Small State (Group B)
- Goa – 62.1
