65 years after bifurcation, Gujarat leads Maharashtra in key economic indicators
NOOR MOHMMED
01/May/2025

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Gujarat has outpaced Maharashtra in key economic metrics 65 years after bifurcation.
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Manufacturing, once a strength of Maharashtra, is now dominated by Gujarat.
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The economic shift highlights the evolving strengths of both states over decades.
As India marks the 65th anniversary of the bifurcation of Bombay State into Maharashtra and Gujarat on May 1, 2025, it becomes evident that Gujarat has surpassed Maharashtra in several key economic metrics. In 1960-61, Maharashtra held a slight edge over Gujarat in per capita income. However, over the decades, Gujarat’s economic trajectory has shifted dramatically, with the state outpacing Maharashtra in manufacturing and other critical sectors.
Historically, Maharashtra was the economic powerhouse of the region, with a thriving manufacturing base and the bustling port city of Mumbai acting as its economic engine. However, Gujarat has experienced a shift in industrial dominance, especially in the manufacturing sector, where it has surpassed Maharashtra in recent years. This shift is particularly significant given that manufacturing was once Maharashtra's core strength.
Gujarat’s success can be attributed to a combination of factors, including favorable state policies, infrastructure development, and a business-friendly environment that has attracted investment in sectors such as textiles, chemicals, and engineering. The state has consistently focused on economic reforms and incentives that have helped nurture a robust manufacturing ecosystem.
Maharashtra, on the other hand, while still a leader in services and finance, especially with Mumbai as India’s financial capital, has seen a slower pace of growth in manufacturing. The diversification of Gujarat’s economy, particularly in the industrial and manufacturing sectors, has allowed it to outpace Maharashtra in overall economic performance.
The story of Gujarat’s economic rise, juxtaposed with Maharashtra’s shift away from manufacturing, underscores the evolving landscape of India’s economy over the past 65 years. While both states continue to play vital roles in India’s economic development, Gujarat’s rise highlights the changing dynamics of regional economic growth in the country.