Assam is the fastest growing state in India: RBI report

Assam has emerged as India’s fastest-growing state economy over the last five years, underscoring the Northeast’s rising contribution to national growth. 

Reserve Bank of India data on Gross State Domestic Product at constant prices show that Assam’s economy expanded by 45% between FY20 and FY25, outpacing all other major states and significantly exceeding the national growth rate during the same period.

The state’s GSDP rose from Rs 2.4 lakh crore in FY20 to Rs 3.5 lakh crore in FY25, driven by agriculture, oil and gas, and a sharp increase in infrastructure investment across the Northeast. 

Assam’s performance reflects a broader shift in India’s growth story, where economic expansion is no longer concentrated in a few regions but is being powered by multiple states.

At the national level, India’s real GDP increased from Rs 145.35 lakh crore in FY20 to Rs 187.97 lakh crore in FY25, marking a 29% rise over five years. Against this backdrop, RBI data show that the top ten fastest-growing major state economies recorded growth of up to 45%, comfortably outpacing the national average.

Tamil Nadu ranked second after Assam, posting 39% growth as its GSDP rose from Rs 12.4 lakh crore to Rs 17.3 lakh crore, supported by a strong manufacturing base spanning automobiles, electronics, textiles, and services. Karnataka followed with 36% growth, with its economy expanding from Rs 11.5 lakh crore to Rs 15.7 lakh crore, anchored by technology services, startups, biotechnology, and advanced manufacturing.

Uttar Pradesh recorded 35% growth over the five-year period, with GSDP rising from Rs 11.7 lakh crore to Rs 15.8 lakh crore, supported by its large domestic market, agriculture, and expanding industrial and logistics infrastructure. Rajasthan posted 34% growth, as its economy expanded from Rs 6.8 lakh crore to Rs 9.1 lakh crore, led by mining, renewable energy, tourism, and cement production.

Bihar and Andhra Pradesh both registered 33% growth. Bihar’s GSDP increased from Rs 4.0 lakh crore to Rs 5.3 lakh crore, largely driven by agriculture and services, while Andhra Pradesh grew from Rs 6.5 lakh crore to Rs 8.7 lakh crore, supported by agriculture, ports, logistics, and food processing.

Chhattisgarh and Jharkhand recorded 31% growth each. Chhattisgarh’s economy expanded from Rs 2.5 lakh crore to Rs 3.3 lakh crore on the back of mining, power generation, and steel, while Jharkhand’s GSDP rose from Rs 2.3 lakh crore to Rs 3.0 lakh crore, supported by minerals and heavy industries. Telangana completed the top ten with 30% growth, as its GSDP increased from Rs 6.4 lakh crore to Rs 8.4 lakh crore, driven by information technology, pharmaceuticals, and urban services.

With Assam leading the growth chart, the data highlights a clear rebalancing of India’s economic momentum, placing the Northeast firmly on the national growth map.

(Inputs from Business Today)