CareEdge State Ranking Report 2025 | 01 May 2025

Why in News? 

Maharashtra has emerged as the top-performing state in the CareEdge State Ranking Report 2025 released by CARE Ratings Ltd (CareEdge Ratings), India's second-largest rating agency. 

 Key Points 

  • The CareEdge State Rankings: 
    • About: 
      • It is the second edition of the CareEdge State Rankings, which offers a holistic evaluation of state performance across seven key pillars: 
        • Economic performance 
        • Fiscal management 
        • Infrastructure development 
        • Financial sector growth 
        • Social development 
        • Governance quality 
        • Environmental sustainability 
      • Together, these pillars are assessed using 50 measurable indicators. 
    • Aim:  
      • The primary aim is to provide a quantitative, data-driven evaluation of how Indian states are performing across critical development dimensions. 
      • The rankings serve as a benchmarking tool to identify strengths, gaps, and opportunities for policy improvement. 
    • Approach and Methodology: 
      • The report adopts an objective and evidence-based approach, focusing on both sustained growth and the inclusiveness of development models. 
      • It also evaluates investment potential, making the findings relevant for businesses, investors, and policymakers. 
    • Scope of the Assessment: 
      • The rankings encompass a broad spectrum of governance and development indicators, offering a comprehensive picture of state-level competitiveness. 
      • The assessment reflects both current performance and long-term capacity for growth. 
      • The rankings exclude Union Territories and aim to present a data-driven assessment of state competitiveness and investment appeal. 
  • State’s Ranking 2025: 
    • Top Performers Among Large States: 
      • Maharashtra secured the top rank in CareEdge Ratings’ 2025 Composite State Ranking. 
      • Gujarat and Karnataka followed, occupying the second and third positions respectively. 
      • Western (Maharashtra, Gujarat) and Southern states (Karnataka, Telangana, Tamil Nadu) dominate the top five ranks. 
    • Bottom Performers Among Large States: 
      • Bihar (17th), Jharkhand (16th), and Madhya Pradesh (15th) were the lowest ranked large states. 
    • Performance Highlights by Region: 
      • Western States: Excelled in economic, fiscal, and financial development indicators. 
      • Southern States: Strong performers in governance, environment, financial development, and economic pillars. 
      • Group B (Northeast, Hilly & Small States) Rankings: 
        • Goa topped the list, with high scores in financial development, infrastructure, fiscal, social, and economic indicators. 
        • Other top performers: Uttarakhand, Sikkim, Himachal Pradesh, and Assam. 
        • Nagaland (11th), Manipur (10th), and Arunachal Pradesh (9th) were at the bottom of Group B. 
  • Notable Subject-wise Highlights: 
    • Economic Rankings: 
      • Gujarat led the economic pillar, driven by strong per capita GSDP, FDI inflow, and Gross Fixed Capital Formation (GFCF). 
      • Karnataka and Maharashtra followed due to robust industrial and service sector contributions. 
      • In Group B, Sikkim performed best, led by strong GSDP and sectoral output. 
  • Fiscal Rankings: 
    • Odisha ranked highest due to effective debt management, low revenue deficit, and prudent expenditure. 
      • Gujarat and Maharashtra followed. 
    • In Group B, Uttarakhand stood out for maintaining low deficits and better public spending. 
  • Financial Development Rankings: 
    • Maharashtra topped this category with high credit disbursements and deep penetration of mutual funds and insurance. 
    • Telangana and Haryana followed; the latter excelled in NBFC credit and PMJDY balances. 
    • Goa led Group B with a wide margin. 
  • Infrastructure Rankings: 
    • Punjab and Haryana led among large states due to high power availability, rail density, and irrigated land. 
    • In Group B, Goa performed best, backed by strong scores in road and rail density, air traffic, and doctor availability. 
  • Social Rankings: 
    • Kerala topped the social pillar with impressive indicators, though it lagged in unemployment. 
    • Tamil Nadu also showed consistent performance. 
    • In Group B, Goa and Mizoram led with strong outcomes in literacy, infant mortality, and poverty reduction. 
  • Governance Rankings: 
    • Andhra Pradesh topped with high scores in court efficiency, business environment, and public e-services. 
    • Madhya Pradesh followed, noted for judicial delivery and digital governance. 
    • In Group B, Uttarakhand and Himachal Pradesh excelled in governance metrics. 
  • Environment Rankings: 
    • Karnataka led in air quality and renewable energy. 
    • Telangana performed well in forest cover growth and drinking water access. 
    • In Group B, Himachal Pradesh stood out with strong performance in green energy, water access, and forest conservation.