17 states achieved over 9% and 25 states over 7% GSDP growth post-COVID: PHDCCI report

India’s states have demonstrated remarkable economic resilience in the aftermath of the COVID-19 pandemic, with 25 states achieving over 7 per cent growth in their Gross State Domestic Product (GSDP) during FY22 and FY23, according to a report by the PHD Chamber of Commerce and Industry (PHDCCI).

Among these, 17 states surpassed an impressive 9 per cent growth rate, with Gujarat, Kerala, Telangana, Rajasthan, West Bengal, Bihar, Karnataka, Uttar Pradesh, Haryana, and Odisha standing out for their robust economic performance during 2021-22 and 2022-23.

The PHDCCI report highlights the sectoral strengths that define individual states and their contributions to India’s economic growth. Punjab, Haryana, and Uttar Pradesh have emerged as leaders in agricultural production, ensuring food security for the nation.

In terms of industrial and mineral wealth, Chhattisgarh, Madhya Pradesh, and Odisha have leveraged their rich resources to drive industrial growth, while Maharashtra, Gujarat, and Karnataka have excelled in industrial and technological advancements, contributing significantly to the nation’s GDP.

Tourism-centric states such as Kerala, Rajasthan, and Goa have capitalized on India’s rich cultural heritage, boosting foreign exchange earnings and supporting the economy.

Infrastructure development and sustainability have been key focus areas in recent years. Tamil Nadu and Andhra Pradesh have made substantial progress in infrastructure projects, while Rajasthan and Gujarat have taken the lead in renewable energy initiatives, aligning with India’s sustainable development goals. Improved connectivity in the Northeastern states has transformed the region into a hub for trade and tourism, further strengthening its role in the national economy.The report also highlights significant achievements in human development. Kerala and Tamil Nadu have set benchmarks in education and healthcare innovation, contributing to improvements in human development indices.

Simultaneously, initiatives like Gujarat’s Vibrant Gujarat Summit, Punjab’s PITEX trade fair, and Telangana’s IT corridor have been instrumental in attracting foreign investments, amplifying India’s global outreach.

To sustain and enhance state-level growth, the PHDCCI proposes a comprehensive, nine-pronged strategy aimed at achieving “Viksit Bharat” (Developed India).

This strategy focuses on improving ease of doing business, reducing operational costs, accelerating infrastructure development, promoting sustainable growth, and boosting the services sector.

Additionally, it emphasizes the need to strategize for export growth, foster skill development and innovation, invest in health and education, and adopt and share successful state-level practices.