Telangana Emerges Top 4th State in Development
State ranked second in financial development parameter
Hyderabad: Telangana retained its ranking as the fourth top-performing state among the 17 large states in India in holistic development, according to the latest CareEdge Ratings’ Composite State Ranking for 2025. While it retained its rank, its composite score went up in the main due to certain welfare measures. Telangana was also ranked second in South India, behind Karnataka.
The rankings are based on seven key developmental pillars — economic, fiscal, financial development, infrastructure, social, governance and environment — assessed through 50 performance indicators.
Maharashtra topped the list with a composite score of 56.5, followed by Gujarat (52.4) and Karnataka (51.9). Telangana closely followed in fourth place with a composite score of 51.4, reflecting a consistent performance across multiple sectors.
Telangana, which held the fourth position in 2023 has maintained its rank in 2025. However, its composite score improved from 50.9 in 2023 to 51.4 in 2025.
In the economic and fiscal categories, Telangana ranked sixth with scores of 43.0 and 51.7, respectively. The state recorded a robust per capita GSDP, a high share in industrial and service sectors, and strong foreign direct investment inflows.
Telangana's most notable performance was in the financial development pillar, where it ranked second with a score of 53.0, driven by substantial bank credit disbursement and focused lending to women's self-help groups (SHGs). The state also performed strongly in infrastructure, securing third place with a score of 44.5.
On the governance and social fronts, Telangana secured sixth and eighth ranks, with scores of 62.5 and 61.6, respectively. The state's social indicators highlighted progress in health, education and welfare metrics.
The environment pillar stood out as another area of strength, with Telangana ranking second with a score of 64.5. The state, along with Karnataka and Andhra Pradesh, was recognised for increase in forest cover and improved potable water access.
CareEdge stated that the 2023 and 2025 rankings were not directly comparable due to a revised methodology in 2025, which includes a longer normalisation period and more comprehensive indicators to enhance evaluation accuracy.
Originally introduced in 2023, the CareEdge rankings skipped publication in 2024 and resumed in 2025 with refined parameters to better assess long-term performance across states.
