The ranking published by CareEdge – the research arm of Care Ratings – shows Gujarat, home of Prime Minister Narendra Modi, in second place, with economic growth and strong financial management.
Meanwhile, India’s most industrialized state Tamil Nadu ranked third with advantages in the social and governance categories.
Maharashtra has an overall score of 55.7, followed by Gujarat (51.8), Tamil Nadu (51.1), Telangana (50.9) and Karnataka (50.4).
Among the major states, Bihar and Jharkhand are at the bottom of the table with scores of 21.9 and 30.1 respectively.
“The top five positions belong to the western and southern states. While higher economic and financial scores are strengths of the western states, the southern states outperform in the region,” the report said. social and environmental categories”.
In Group B (Northeast, hilly and small states), Goa topped the overall rankings and led in the social, infrastructure, financial inclusion and financial inclusion categories.
Among the northeastern states, Sikkim is the best performing enterprise due to higher scores in the economic, social, infrastructure and environmental categories.
When it comes to economic indicators, Gujarat tops the rankings with healthy data on GSDP per capita, GSDP growth, FDI inflows and a high share of industry and services in the GSVA.
Notably, Odisha topped the rankings in the fiscal category due to better scores on fiscal revenue and deficit as well as sound debt management metrics (CSF & GRF).
Meanwhile, Maharashtra comes out on top for financial inclusion with the best performance in credit/GSDP ratios, NBFC sanctions and health insurance penetration rates. It is also relatively good at mutual fund penetration.
Punjab and Haryana top the infrastructure rankings, mainly due to high availability of electricity, greater rail density and irrigated area. However, both lag behind in terms of social infrastructure (hospital beds and schools), the report said.
Regarding administration, Andhra Pradesh and Telangana ranked first due to their high Ease of Doing Business (EoDB) ratings and higher scores for conviction rates in court, the report said.
The states must improve their physical infrastructure, but the “bigger concern” will be developing social infrastructure such as health and education, said Rajani Sinha, chief economist at CareEdge. .
Sinha added: “India is lacking in those areas and all states should improve their focus on that.
