Dharamshala: In a striking economic comparison, India’s leading states Maharashtra and Tamil Nadu have now overtaken Pakistan in terms of overall GDP, highlighting a dramatic shift in the regional balance of economic power in South Asia.
According to recent data analyzed by Firstpost, the GDP of Maharashtra stands at \$477 billion, and Tamil Nadu at \$366 billion. In contrast, Pakistan’s economy, once larger than the entire Indian economy in the 1960s, currently stands at an estimated \$341 billion.
How did Indian states surge ahead?
Experts attribute the surge to India’s consistent economic reforms, greater political stability, and massive infrastructure and industrial investments across states. Both Maharashtra and Tamil Nadu have diversified their economies—Maharashtra being India’s financial capital and Tamil Nadu thriving in sectors like manufacturing, electronics, and services.
Pakistan, on the other hand, has been grappling with political instability, economic mismanagement, and a crippling debt crisis. In 2023-24, inflation in Pakistan soared past 29%, and its currency saw massive depreciation, shrinking its economy in dollar terms.
State vs Nation: What the numbers reveal
Maharashtra (\$477B)
Pakistan (\$341B)
Tamil Nadu (\$366B)
Pakistan (\$341B)
The comparison underscores not only India’s growing regional dominance but also the failure of Pakistan’s economic policies to keep pace with evolving global and regional trends.
What’s driving India’s edge?
India’s digital transformation, strategic trade policies, and young workforce have powered high GDP growth. States like Tamil Nadu have become global hubs for automobile manufacturing and electronics exports, while Maharashtra leads in finance, IT, and infrastructure.
Meanwhile, Pakistan’s economy is heavily reliant on IMF bailouts, remittances, and agriculture, with dwindling foreign exchange reserves and little diversification.
As Pakistan struggles to stabilize its economy, Indian states are emerging as global investment destinations. This economic divergence is expected to widen further unless Pakistan undertakes major structural reforms.
Sunil Chadha
