Karnataka has secured a spot among the top three states in India based on a comprehensive evaluation of 50 indicators across economic, fiscal, and social dimensions, according to the latest state rankings released by CareEdge Ratings on Tuesday. Maharashtra tops the list, followed by Gujarat and Karnataka, highlighting the continued dominance of western and southern states in terms of development and governance.
The rankings are based on seven key pillars: economy (25% weight), fiscal management (20%), financial development and infrastructure (15% each), along with social, governance, and environment metrics. The report offers a data-driven analysis of each state’s ability to deliver sustainable and inclusive growth, aiming to inform investment decisions and policy planning.
“The goal is to provide a well-rounded snapshot of state-wise development that supports equitable progress and investment attractiveness,” said Rajani Sinha, Chief Economist at CareEdge Ratings. She emphasized that the current edition, being the second in the series, is not directly comparable with the 2023 version due to changes in methodology and new indicators.
States were divided into two groups: Group A for larger states and Group B for smaller, northeastern, and hilly regions. Goa topped Group B, performing well in finance, infrastructure, and social parameters.
Among the larger states, Telangana ranked fourth, followed by Tamil Nadu, Haryana, Kerala, and Andhra Pradesh. Bihar remained at the bottom of the table.
Maharashtra led in financial development, while Gujarat’s strong economic output and infrastructure supported its high ranking.
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