CareEdge State Ranking Report 2025: Maharashtra Tops, Goa Leads Among Small States

The CareEdge State Ranking Report 2025 has been released by CareEdge Ratings Ltd (formerly CARE Ratings)—India’s second-largest credit rating agency. The report provides a comprehensive, data-driven analysis of Indian states based on their performance across seven key development pillars. Maharashtra has emerged as the top-performing large state, while Goa has claimed the number one position among small and hilly states.

What is the CareEdge State Ranking Report?

The CareEdge State Rankings is an annual assessment aimed at benchmarking state-level performance across seven development dimensions using 50 quantifiable indicators. The 2025 edition marks the second edition of this comprehensive report.

Objectives of the Ranking

• To offer a holistic evaluation of state competitiveness.

• To assist policymakers, investors, and businesses in assessing state-wise development and investment potential.

• To highlight strengths, gaps, and opportunities in governance and infrastructure.

Seven Pillars of Assessment

The rankings are based on performance in the following areas:

1. Economic Performance

2. Fiscal Management

3. Infrastructure Development

4. Financial Sector Growth

5. Social Development

6. Governance Quality

7. Environmental Sustainability

Each pillar contains quantitative metrics such as GSDP, credit penetration, literacy rates, digital governance indicators, forest cover, etc.

Top Performing Large States in 2025

• Western States (Maharashtra, Gujarat): Excel in fiscal and economic performance.

• Southern States (Karnataka, Telangana, Tamil Nadu): Lead in governance, environment, and financial sector growth.

Bottom-Performing Large States

Top Performing Small & Northeastern States (Group B)

• Arunachal Pradesh (9), Manipur (10), Nagaland (11)

Subject-Wise Category Leaders

Economic Performance

• Gujarat leads due to high GSDP, FDI inflow, and Gross Fixed Capital Formation (GFCF).

• Sikkim is the top performer among smaller states.

Fiscal Management

• Odisha ranks highest with low revenue deficit and good debt control.

• Uttarakhand excels among small states.

Financial Sector Growth

• Maharashtra tops, thanks to deep insurance and mutual fund penetration.

• Goa leads among small states with high credit disbursal and financial inclusion.

Infrastructure Development

• Punjab and Haryana lead among large states.

• Goa ranks highest among small states for rail/road density, air connectivity, and health infrastructure.

Social Development

• Kerala leads in literacy and health but struggles with unemployment.

• Goa and Mizoram top among small states in literacy and poverty reduction.

Governance Quality

• Andhra Pradesh scores highest with efficient judiciary and digital governance.

• Uttarakhand and Himachal Pradesh perform well in Group B.

Environmental Sustainability

• Karnataka leads with good air quality and renewable energy usage.

• Himachal Pradesh stands out for forest cover and water access.

Importance of the Report

The CareEdge Rankings have growing significance due to the following:

• Evidence-Based Policy Making: Helps states plan reforms and improve competitiveness.

• Investor-Friendly Insights: Indicates long-term investment potential of regions.

• Promotes Competitive Federalism: Encourages states to strive for better governance and development.

Conclusion

The CareEdge State Ranking Report 2025 reflects a comprehensive, transparent, and data-driven approach to assessing state performance. Maharashtra’s dominance, Gujarat’s economic leadership, and Goa’s overall excellence among small states highlight the growing regional competitiveness in India. These rankings will likely shape investment decisions, policy reforms, and governance models in the coming years.

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