Overview
- Client Associates published the State of Indian States: 2026 white paper in mid‑May, finding that five states — Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka and Gujarat — together made up nearly 48% of India’s GDP in FY2025.
- The report says India drew ₹4.22 lakh crore in FDI equity in FY2025, up 14.7% year‑on‑year, but that five states (Maharashtra, Karnataka, Gujarat, Delhi and Tamil Nadu) captured 83.3% of those inflows, showing capital is heavily clustered.
- Five‑year nominal GDP growth data point to rapid catch‑up in several smaller and northeastern states, with Assam at about 17.3% CAGR and Meghalaya and Manipur around 15%, gains linked to new roads, bridges, sector growth and state reforms.
- Client Associates ranked states on nine measures of competitiveness and fiscal health and placed Gujarat first, flagged Punjab, Himachal Pradesh, Mizoram and Jammu & Kashmir for fiscal rehabilitation, and highlighted Uttar Pradesh’s fast transformation.
- The paper projects national GDP near 7.5% for FY2026 and argues that spreading investment, improving ease of doing business and fixing state finances are key next steps for turning countrywide growth into wider, lasting gains for people.