India’s economic growth is no longer driven solely by its traditional industrial powerhouses. Northeastern states such as Assam, Meghalaya, and Manipur have emerged among the nation’s fastest-growing economies over the past five years, according to a report released on May 19.
While states like Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, and Gujarat still dominate the economy together accounting for nearly 48% of the national Gross Domestic Product (GDP), the report notes that growth is becoming more “democratised” and widespread across the country.
Among all large states, Assam recorded the highest nominal GDP growth, with a five-year compound annual growth rate (CAGR) of 17.32%. The report attributes Assam’s rapid expansion to improved connectivity infrastructure, especially new roads and bridges funded by the central government, steady growth in the tea and agro-processing sectors, and a more favourable investment climate.
Meghalaya also stood out, posting a five-year nominal GDP CAGR of 15.27%. Although it started from a smaller economic base, the report highlights that Meghalaya’s growth is significant in percentage terms. Manipur, too, ranked among the fastest-growing economies, recording a nominal GDP CAGR of 15.04% over five years.
Apart from Assam and Meghalaya, Uttar Pradesh saw a nominal GDP CAGR of 15.34% during the same period. Karnataka also surpassed (15.14%) nominal GDP growth, followed by Bihar (14.97%), Tamil Nadu (14.92%), Jharkhand (14.86%), Telangana (14.85%), and Maharashtra (14.78%).
The study concludes that five-year nominal CAGR data offers a more balanced view of India’s economic transformation than traditional state GDP rankings, revealing that structural “catch-up” growth is now increasingly evident across diverse regions of the country.