Which state benefited the most from economic reforms

Business Business: Over the past three decades, India’s economic landscape has seen significant changes, with states such as Gujarat, Haryana, Karnataka, Tamil Nadu and Delhi emerging as major contributors to the country’s GDP. A comparison of data from 1990-91 to 2023-24 shows how these states have significantly increased their share in the country’s economic output due to industrial expansion, urbanisation and rapid technological advancement. According to the Economic Advisory Council to the Prime Minister (EAC-PM), Gujarat has seen some of the most notable changes.

The government’s contribution to the national GDP was 6.4% in 1990-91. Over the next three decades, Gujarat’s share grew steadily, reaching 8.1% in 2023-24. This growth is largely due to the state’s industrialisation, particularly its concentration on manufacturing, chemical and petrochemical industries. Gujarat’s ports and business-friendly environment have also helped attract foreign and domestic investment and significantly increase production volumes. Karnataka has also seen a significant increase in its contribution to the national economy. Karnataka’s share was only 5.3% in 1990–91 but is set to rise to 8.2% by 2023–24. The state’s rapid growth is driven by the IT and technology boom in Bangalore, often called India’s Silicon Valley. Karnataka has emerged as a hub for software exports, startups, and innovation, significantly increasing its share in GDP.