If we talk in the context of states in India, well, they can be ranked as rich or poor based on two different factors, one is where we put the per capita data as the utmost priority, and in the second ranking system, you can look at the total GSDP data of a state and compare it to all the other states in the country. Well, everybody talks about the per capita story of these states, but no one talks about the GSDP data of the poorest states in the country, and that’s the way it should be. So, if you were somewhat intrigued about which are the poorest states in India, well then, just keep on reading this list of the Top 10 Poorest States in India 2025. Let’s get going now.
1. Mizoram
In 2025, Mizoram has the tiniest economy out of all the Indian states, with a GSDP of only ₹34,289 crores. However, the story is not just about figures. More than 84% of Mizo is covered in the forest, and it is one of the least populous states in India. This is the cause for which the city remains economically quite small despite its fairly urbanized arrangement. The state of Mizoram is engaged in only a small number of heavy industries; on the other hand, it has concentrated its energy on bamboo, horticulture, and shifting cultivation. As a result, it is quite natural for it to lag behind the country in terms of GSDP.
2. Arunachal Pradesh
Arunachal Pradesh is the second state with a GSDP of ₹39,041 crore, even being one of the largest states by area. The main factors behind this ranking are the state’s thinly populated, rough Himalayan terrain and difficult connectivity, with which economic growth has been a challenge. Sharing borders with China, Bhutan, and Myanmar, the country has both logistical and political complications arising from this fact. Although the state is full of natural resources, it has been economically disappointing.
3. Nagaland
With a GSDP of ₹40,414 crore, Nagaland is placed in the third position in this ranking. The state, which is covered with hills and has a low population density, continues to rely largely on farming and forestry. Even if city amenities and diversity are gradually establishing themselves, the amount of production is still small. This is the main reason why the economy of Nagaland is still small relative to that of most other states.
4. Manipur
Manipur is in the fourth spot with a GSDP of ₹46,710 crore. The state is largely hilly except for a small central valley that can sustain high economic activities. The connectivity could be better; still, with Imphal being a major hub, industrial growth is restricted to a certain extent. Traditional hydropower and agriculture are still the backbone of the region, and this is probably the main reason for the low overall economic output compared to many other areas.
5. Sikkim
Ranked fifth among the states, Sikkim has a Gross State Domestic Product (GSDP) of ₹48,937 crore for the financial year 2023-24. The point that catches the attention is not the landscape or the economy of Sikkim, but the small population of this place. Though it has strong tourism, hydropower, and organic farming, the small population inherently restricts the total size of the economy. The state is an ideal illustration of how low output is not always a reflection of low performance.
6. Meghalaya
Meghalaya is known for Cherrapunji and Mawsynram, the two places that receive the highest rainfall in the world; however, the state’s GSDP is only ₹53,057 crore. This ranks it 6th from the bottom. Around 80% of the population is reliant on agriculture; however, the productivity remains low since just 10% of the land is cultivated, and old-fashioned farming methods such as Jhum are still being used. Meghalaya is ranked here because of the discrepancy between the input and the economic output.
7. Tripura
Tripura, ranked seventh, accounted for a GSDP of ₹82,205 crore. The primary sector is the mainstay of the state, with almost the entire rural population engaged in it. The state has a poor industrial side with the exception of some areas like tea and bricks. Tripura is India’s second-biggest rubber producer as well, but that sector, which looks promising, has not grown sufficiently to change the state’s ranking on this list.
8. Goa
Maybe this might cause a few raised eyebrows. Goa is rated eighth from the bottom regarding the total Gross State Domestic Product (GSDP) of ₹106,533 crore. However, the twist is that Goa is one of the richest states in terms of per capita income. The total economy figure is low because of the state’s low population. Goa is excellent in almost all other areas except the total GSDP size, where the state is unable to perform well. The state is doing well with a prosperous tourism sector, flourishing fisheries, and good-quality infrastructure.
9. Himachal Pradesh
With a value of ₹210,662 crore, Himachal Pradesh is ranked ninth among these. However, the money should not be allowed to mislead you. The state is a pharmaceutical center that houses more than 650 factories for the production of the pharmaceutical industry. Tourism and agriculture in general have been a great source of income for the state, with apples being the main focus. Yet the amount of land available, the hilly terrain, and the limited number of workers are the factors that decide the total output to be lower than bigger states.
10. Uttarakhand
Uttarakhand is at the 10th position with a GSDP of ₹332,998 crore, making it the last among the top 10. Despite being in tenth place here, it’s also among the rapidly growing hill states. Uttarakhand, which was formed just in the year 2000, has shifted its focus to services, tourism, and hydropower. Farming, however, is a very small sector in the state. The only factor that restrains it from rising higher is just the size; big plain states go beyond it in total production.
Conclusion
That’s pretty much it. If you look at the bottom rankings in the GSDP charts of India, then you’ll probably find these ten states there with the lowest GSDP so far as of 2024-25. For many of these states, things are improving a bit, and that’s why you can certainly see some growth in the overall GSDP, and that will improve their ranking as well, which ultimately is a good thing for the country as a whole.