By NE NOW NEWS
Guwahati: Meghalaya is among the Indian states that have shown strong economic growth over the last five years, according to a report published by wealth management firm Client Associates.
The report notes that this expansion reflects a broader redistribution of growth beyond India’s long-established industrial powerhouses.
A five-year nominal GDP compound annual growth rate (CAGR) of 15.3 per cent has been recorded for Meghalaya, placing it above the national average, the study found. It further pointed out that although the state operates from a relatively small economic base, its percentage growth rate remains impressive.
For the period up to FY25, India’s overall nominal GDP growth averaged 14.78 per cent. The study also noted that Manipur, despite experiencing ethnic conflict, posted more than 15.04 per cent nominal GDP growth over the same five-year timeframe.
According to experts analysing the data, Meghalaya, earlier considered economically behind, has witnessed a major surge in capital inflows, with investments reportedly rising fourfold since 2018.
The state’s startup landscape has also expanded, supported by the government’s PRIME (Promotion and Incubation of Market-driven Enterprises) initiative, which has backed hundreds of entrepreneurs and generated employment at scale.
The report pointed to developments in the IT sector as well, stating that the Shillong Technology Park is now fully operational and drawing interest from major companies, contributing to job creation. Tourism and infrastructure development have further strengthened the state’s economy, with Meghalaya setting a target of 20 lakh tourists by 2028.
Assam emerged as the strongest performer among larger northeastern economies, with a five-year nominal GDP CAGR of 17.3 per cent.
This growth was attributed to better connectivity infrastructure, especially road and bridge projects supported by central funding, along with expansion in tea production, agro-based industries and improved investment conditions.
While major contributors such as Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Gujarat continue to dominate India’s economic output, accounting for nearly 48 per cent of GDP—the report observed that several smaller and mid-sized states are now growing at a faster pace.
The analysis also suggested that nominal GDP growth across states over five years presents a more evenly distributed economic picture, indicating emerging convergence in regional development trends.
During the period, Uttar Pradesh posted a 15.3 per cent compound annual growth rate, which the report considered notable given the size of its economy.
The momentum was attributed to a series of governance initiatives, including the NIVESH MITRA single-window clearance system, digitisation of land records, and the expansion of infrastructure in logistics and defence manufacturing.