Meghalaya among India’s fastest growing state economies: Study

From CK Nayak

NEW DELHI, May 20: Meghalaya has emerged as one of India’s fastest-growing state economies over the past five years, reflecting a broader shift in the country’s economic growth pattern beyond the traditionally dominant industrial states, a report released by the wealth management firm Client Associates has said.

Meghalaya featured prominently in the report, posting a five-year nominal GDP CAGR (compound annual growth rate) of 15.3 per cent which is higher than the national average. The study observed that although the growth came from a relatively lower economic base, the pace of expansion remained significant in percentage terms.

The national average nominal GDP growth during the same period until FY25 stood at 14.78 per cent. Interestingly, ethnic violence-hit Manipur has also recorded nominal GDP growth above 15.04 per cent during the five-year period, the study said.

Analysing the report, experts said that in Meghalaya, once a laggard state, capital investments have multiplied fourfold since 2018. It has a thriving startup ecosystem with the Chief Minister’s signature PRIME (Promotion and Incubation of Market-driven Enterprises) which has actively funded hundreds of local entrepreneurs and generated thousands of jobs, the report said.

Giving specific examples in the IT sector, the report said the Shillong Technology Park is fully operational, attracting global industry leaders to boost local employment. Major infrastructure projects have helped boost tourism, with the state targeting 20 lakh visitors by 2028 which has helped its economy to grow.

In the Northeast, Assam registered the fastest nominal GDP growth among large states, recording a five-year CAGR of 17.3 per cent. The report attributed Assam’s performance to improved connectivity infrastructure, particularly expansion of roads and bridges supported through central funding, alongside growth in the tea and agro-processing sectors and an improved investment environment.

The study noted that a handful of states such as Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Gujarat continue to serve as the primary drivers of the national economy — together contributing nearly 48 per cent of India’s GDP. Still a number of smaller and mid-sized states like Meghalaya are now recording some of the highest growth rates in the country.

The report stated that the five-year nominal CAGR data presents a more “democratised” economic picture than conventional state GDP rankings, indicating that structural catch-up growth is beginning to emerge across a wider section of the Indian economy.

Uttar Pradesh recorded a 15.3 per cent CAGR, described as significant considering the scale of the state’s economy. It credited reforms undertaken during the current administration, including the NIVESH MITRA single-window clearance portal, land record digitisation and the expansion of logistics and defence manufacturing infrastructure, for contributing to the momentum.

Client Associates (CA) was founded as India’s first Multi Family Office firm in 2002 by two private bankers. It is the largest multi-family office in India.