As per CareEdge Ratings 2nd edition of state ranking 2025, Gujarat has topped the economic pillar aided by its strong performance in per capita Gross State Domestic Product (GSDP), Foreign Direct Investment (FDI) as percentage of GSDP, and in Gross Fixed Capital Formation (GFCF) for industries.Gujarat ranks second in the overall composite ranking, following Maharashtra. Gujarat’s performance in the composite rankings is supported by its leading economic rank along with favourable outcomes in the fiscal and infrastructure pillars. Gujarat’s fiscal performance is supported by a better score in fiscal deficit, government’s capital outlay, outstanding liabilities and guarantees.Sharing his perspective on Gujarat, Mehul Pandya, MD & Group CEO, CareEdge said, “Gujarat maintains a growth-oriented performance, making it one of the top-performing states in the country. It performs strongly on the economic and fiscal pillars which forms the foundation of a state’s macro-economic fundamentals putting it on a sustainable growth trajectory.The second edition* of CareEdge state rankings presents a comprehensive assessment based on 7 key pillars – Economic, Fiscal, Infrastructure, Financial Development, Social, Governance and Environment – together capturing 50 indicators. In the ranking, CareEdge Ratings has categorized the states into two groups: Group A for larger states and Group B for North-East, Hilly & Small States. The Union Territories have been excluded from the study.Rajani Sinha, Chief Economist, CareEdge Ratings said, “For a comprehensive assessment of the states’ overall performance, we have looked at seven pillars namely economic, fiscal, financial development, infrastructure, social, governance and environment covering a total of 50 indicators. This is a quantitative assessment of states’ potential in terms of sustainable and equitable growth and is also a reflection of investment attractiveness of these states. The objective of this report is to present a holistic picture that encourages informed decision-making.”