Maharashtra has emerged as the best performing state of the country, said a report by a domestic credit rating company, highlighting the state’s its robust position on economic, social and governance parameters.
The report was released by ‘CareEdge’, the research arm of Care Ratings Ltd. The findings also presented a favorable image of PM Modi’s home state of Gujarat that boasted of robust economic growth and fiscal management, whereas Tamil Nadu, the most industrialized state stood third in the rankings with an edge in social and governance categories.
“Maharashtra, the financial capital of the country, tops the ranking with a favorable score not just in financial inclusion but also for state government finances and social indicators… The leading states could offer the others a model to follow,” said Mehul Pandya, MD and CEO of CareEdge.
The rankings were finalised by the wing after having evaluated the performances of all the Indian states on 7 broad parameters – economic aspect, fiscal performance, infrastructure, financial inclusion, environment, social aspect and governance.
While Maharashtra and Gujarat, located in the western region of the country aced the rankings mainly due to their economic might, the eastern state of Odisha emerged as the best state for managing expenses, said the report.
On the governance parameter, Andhra Pradesh and Telangana topped the list, while the state of Uttar Pradesh was ranked third. CareEdge’s chief economist Rajani Sinha attributed this to the state’s achievements in ease of doing business. She said that a lot of weightage was given to the aspect of ease of doing business while coming up with the rankings, followed by e-governance records, conviction rates and police strength. She also stated that the rankings have been arrived at are based gains made over a longer period of time, and that the pecking order is unlikely to change soon. However, sustained efforts on policy front can result in shifts over a longer period of time.