In April 2025, Mumbai(Maharashtra) based CareEdge Ratings (formerly CARE Ratings Ltd) released its second edition of it’s state rankings, Maharashtra has emerged as the best in overall composite rankings with a score of 56.5, followed by Gujarat(52.4) and Karnataka(51.9).
About CareEdge state rankings :
i.This is a quantitative assessment of states’ potential in terms of sustainable and equitable growth and is also a reflection of the investment attractiveness of these states. The first edition of the report was released in 2023.
ii.It evaluates Indian states across 7 pillars: Economic, Fiscal, Infrastructure, Financial Development, Social, Governance and Environment – together capturing 50 indicators.
iii.The 2025 methodology incorporates a longer normalisation period for better comparability across periods going forward.
Highlights of CareEdge state rankings 2025:
Western and southern states dominated the top five rankings. Western states ranked high on fiscal and economic parameters, while southern states stood out across governance, environment and social outcomes.
- Goa topped the ranking in the North-East, Hilly & Small states (Group B) category with a score of 62.1.
The top 5 Group A and B category Ranking:
| Rank | Large States (Group A) | Rank | North-East, Hilly & Small States (Group B) |
|---|---|---|---|
| 1 | Maharashtra( 56.5) | 1 | Goa (62.1) |
| 2 | Gujarat(52.4) | 2 | Uttarakhand(48.2) |
| 3 | Karnataka(51.9). | 3 | Sikkim(47.2) |
| 4 | Telangana(51.4) | 4 | Himachal Pradesh(46.8) |
| 5 | Tamil Nadu, TN(50.1) | 5 | Assam(44.2) |
Note:
Union territories were not included in the above analysis.
Pillar-wise Rankings:
i.Economic Pillar: Gujarat topped the economic pillar, aided by by strong per capita gross state domestic product (GSDP), high foreign direct investment (FDI) as a share of GSDP, and robust gross fixed capital formation (GFCF) for industries.
- Under the Group B category, Sikkim ranked the highest.
ii.Fiscal Pillar: Odisha topped the fiscal pillar, scoring well on revenue deficit, interest payments, debt levels, and fiscal guarantees.
- While under the Group B category, Uttarakhand performed the best.
iii.Financial Development: Apart from leading the composite ranking, Maharashtra also led in financial development, supported by strong credit disbursement by banks and Non-Banking Financial Companies (NBFCs) and high penetration of mutual funds and health insurance.
iv.Infrastructure: Punjab and Haryana ranked best in infrastructure, with higher scores on per capita power availability, railway density, and net irrigated area.
- Goa again led the Group B states faring well in per capita power availability, road and railway density.
v.Social: Kerala led on social indicators, while Goa and Mizoram (Group B category) were the front-runners with better scores for infant mortality and multi-dimensional poverty rate outcomes.
vi.Governance: Andhra Pradesh(AP) topped the governance pillar, scoring high on business environment, judicial efficiency, and administrative strength.
- In Group B, Uttarakhand and Himachal Pradesh(HP) topped the rankings.
vii.Environment: In environmental performance, Karnataka, Telangana, AP and Tamil Nadu(TN) stood out, with Karnataka leading in air quality and Renewable Energy(RE), and Telangana scoring well on forest cover changes and potable water access.
- Himachal Pradesh(HP) excelled in renewable energy, potable water and change in forest cover, leading the states in Group B.
About CareEdge Ratings:
Chairman – Najib Shah
Headquarters – Mumbai, Maharashtra
Established – 1993
