The 2025 CareEdge Ratings State Ranking highlights Maharashtra, Gujarat, and Karnataka as top-performing large states, with Goa leading among smaller and northeastern states. Maharashtra ranked first overall, excelling in financial and social metrics. Gujarat led in economic performance, while Karnataka stood out in industrial and environmental indicators. Southern and western states consistently outperformed others.
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Maharashtra, Gujarat, and Karnataka have emerged as the top-performing states in the 2025 CareEdge Ratings State Ranking, with western and southern states dominating the upper tiers. This second edition of the annual report assesses Indian states across seven core pillars—economic, fiscal, infrastructure, financial development, social, governance, and environment—using 50 performance indicators.
The rankings by CareEdge Ratings reveal certain regional trends where western states performed strongly in fiscal and economic areas, while southern states excelled in governance, environmental sustainability, and social development.
According to Rajani Sinha, Chief Economist at CareEdge Ratings, “This is a quantitative assessment of states’ potential in terms of sustainable and equitable growth and is also a reflection of the investment attractiveness of these states. The objective of this report is to present a holistic picture that encourages informed decision-making.”Â
Overall statewise ranking
As per the report, Maharashtra ranked first among large states in Group A with a composite score of 56.5, followed by Gujarat at 52.4 and Karnataka at 51.9. In Group B, comprising northeastern, hilly, and smaller states, Goa secured the top position with a score of 62.1.
Maharashtra secured the top spot overall, reflecting its consistent performance across key areas including finance, economy, fiscal management, and social development. It also led in financial development, supported by strong credit disbursement, a robust NBFC sector, and high penetration of mutual funds and health insurance.
Gujarat ranked first in economic performance, thanks to high per capita GSDP, strong FDI relative to GSDP, and solid industrial investments.Â
Karnataka led in industrial output and environmental performance, excelling in renewable energy and air quality.
In environmental rankings, Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu stood out. Karnataka led with cleaner air and strong renewable energy adoption, while Telangana was noted for gains in forest cover and improved access to safe drinking water.
Among smaller, hilly, and northeastern states, Goa stood out, ranking highest due to its performance in financial development, infrastructure, and fiscal health. Union territories were not part of the assessment.
Odisha topped the fiscal pillar, supported by low revenue deficits, controlled debt levels, and prudent fiscal guarantees.Â
Punjab and Haryana led in infrastructure, marked by high per capita power availability, dense railway networks, and extensive irrigated land.Â
Kerala excelled in social indicators, while Andhra Pradesh topped the governance category, reflecting robust administrative systems, judicial efficiency, and a favorable business climate.
As per the agency’s evaluation, Bihar, Jharkhand, and Madhya Pradesh are the bottom three performers among the large states, ranking 17th, 16th, and 15th respectively.
Governance Rankings
Andhra Pradesh secured the top spot in the governance pillar, driven by strong performance in business environment, court conviction rates, timely completion of court trials, and judicial strength. Madhya Pradesh followed, supported by improvements in court trial completion and the delivery of public e-services.
Regionally, southern states dominated the governance rankings, with four of the top six positions held by states from the region, according to CareEdge Ratings.
In Group B, Uttarakhand and Himachal Pradesh led the rankings due to their strong scores in business environment, judicial capacity, trial completion rates, and public e-service delivery.
Social Rankings
Kerala topped the social pillar, showing strong results across a wide range of indicators. Tamil Nadu also performed well, demonstrating consistent progress in key social metrics. However, the agency noted that Kerala continued to face issues related to high unemployment.
In Category B, Goa and Mizoram led the rankings. Both states achieved positive outcomes in reducing infant mortality and multidimensional poverty. Goa excelled in gross enrollment rates, while Mizoram stood out for its high literacy levels and lower unemployment rates.
Financial Development Rankings
Maharashtra emerged as the top performer in financial development, driven by strong credit disbursement from banks and NBFCs, along with high penetration of mutual funds and health insurance. Telangana and Haryana followed closely behind.
Southern states such as Telangana and Tamil Nadu showed positive results in bank credit distribution and Self-Help Group (SHG) lending. Haryana secured third place, supported by strong performance in NBFC credit, balanced PMJDY account usage, and greater reach of life insurance and mutual funds. In Category B, Goa led by a significant margin, outperforming other states across most financial development indicators.
Fiscal Rankings
Odisha ranked first in the fiscal category, excelling in areas such as revenue deficit management, interest payments as a percentage of revenue, debt management, outstanding liabilities, and fiscal guarantees. Gujarat and Maharashtra secured the second and third positions, respectively.
Whereas, in Group B, Uttarakhand performed strongly, with positive results in fiscal deficit management, own tax revenue, and outstanding liabilities. The state also stood out for its relatively higher government spending on health and education.
In conclusion, the 2025 CareEdge Ratings reveal that Maharashtra, Gujarat, and Karnataka are the top performers, showcasing strong growth across economic, fiscal, and social pillars. Southern and western states stand out in governance and environmental sustainability, while Goa leads among smaller states. However, states like Bihar, Jharkhand, and Madhya Pradesh face challenges in key areas.
