States must fix their own economies, address deeper structural cracks

The data suggests that of all states and Union Territories, 12 had their debt-to-GSDP ratio higher than 35 per cent in 2023-24, while around 24 had their debt above 20 per cent

A recent report by Crisil showed that India’s 18 largest states, which together account for over 90 per cent of the country’s gross state domestic product (GSDP), are projected to see a revenue growth rate of 7-9 per cent in 2025-26, up from 6.6 per cent in 2024-25. Aggregate revenues are expected to touch ₹40 trillion, driven largely by steady goods and services tax (GST) collection, robust growth in excise on liquor, and improved central transfers. Petroleum tax collection, however, continues to lag with subdued 2 per cent growth.

 

Clearly, this is a reassuring sign of stability in state finances