Guwahati: Assam emerged as India’s fastest-growing state economy over the past five years, highlighting the Northeast’s rising contribution to national growth, according to Reserve Bank of India (RBI) data on Gross State Domestic Product (GSDP) at constant prices.
The state’s economy expanded 45% between FY20 and FY25, with GSDP rising from Rs 2.4 lakh crore to Rs 3.5 lakh crore, outpacing all other major states and surpassing the national GDP growth rate of 29% over the same period. Agriculture, oil and gas, and robust infrastructure investments across the Northeast drove Assam’s growth.
RBI data show India’s real GDP increased from Rs 145.35 lakh crore in FY20 to Rs 187.97 lakh crore in FY25, reflecting broad-based state-level expansion rather than growth concentrated in a few regions.
Tamil Nadu ranked second among the fastest-growing states, posting 39% growth as its GSDP rose from Rs 12.4 lakh crore to Rs 17.3 lakh crore, supported by manufacturing sectors including automobiles, electronics, textiles, and services.
Karnataka recorded 36% growth, driven by technology services, startups, biotechnology, and advanced manufacturing, with GSDP increasing from Rs 11.5 lakh crore to Rs 15.7 lakh crore. Uttar Pradesh followed with 35% growth, leveraging its large domestic market, agriculture, and expanding industrial and logistics infrastructure, as GSDP rose from Rs 11.7 lakh crore to Rs 15.8 lakh crore.
Rajasthan posted 34% growth, with mining, renewable energy, tourism, and cement production fueling the state’s economy, expanding GSDP from Rs 6.8 lakh crore to Rs 9.1 lakh crore. Bihar and Andhra Pradesh both recorded 33% growth, with Bihar’s economy rising from Rs 4.0 lakh crore to Rs 5.3 lakh crore, driven by agriculture and services, while Andhra Pradesh grew from Rs 6.5 lakh crore to Rs 8.7 lakh crore, supported by agriculture, ports, logistics, and food processing.
Chhattisgarh and Jharkhand each posted 31% growth, led by mining, steel, power generation, and heavy industries. Telangana completed the top ten fastest-growing states, achieving 30% growth, with GSDP rising from Rs 6.4 lakh crore to Rs 8.4 lakh crore, powered by information technology, pharmaceuticals, and urban services.
Assam’s leading performance underscores a broader rebalancing of India’s economic momentum, signaling the Northeast’s growing role in the country’s overall growth trajectory.