These two Indian states have a higher GDP than Pakistan! Know all about it

As the dust from 'Operation Sindoor' settles, a new revelation has laid bare Pakistan's economic situation. Pakistan’s economy has deteriorated to the point where its national economy now lags behind Indian states like Maharashtra and Tamil Nadu, two of India’s strongest regional economies.

According to the World Bank and the Reserve Bank of India data, Pakistan’s GDP in 2004–05 stood at $132 billion. That same year, Maharashtra’s Gross State Domestic Product (GSDP) was about $92 billion, whereas Tamil Nadu’s $48 billion — both significantly smaller.

Fast forward to 2023–24, Maharashtra’s economy has shown a significant growth of approximately $490 billion, and Tamil Nadu’s economy grew to $329 billion. Meanwhile, Pakistan’s GDP is estimated between $338 billion and $373 billion, depending on the source and fiscal timing according to the data.

It is important to mention that while Pakistan’s economy has nearly tripled over two decades, the pace has not kept up. This was a result of multiple factors combined, such as political instability, low industrial growth, high inflation, and repeated bailouts that weighed it down. Recently, the IMF approved a second disbursement of $1.02 billion as part of a broader Extended Fund Facility — marking Pakistan’s 24th bailout since 1958.

India’s GDP now exceeds $4 trillion, growing at 6.4 per cent in 2025, while Pakistan grew at just 2.6 per cent, according to a recent report by the IMF. Much of the growth in Tamil Nadu and Maharashtra has come from rapid industrialisation, services, and consistent foreign investment. Tamil Nadu, being a major hub for automotive, electronics and green energy, while Maharashtra hosting India’s financial capital, Mumbai have shown significant progress.

Pakistan, however, continues to allocate a major chunk of money and resources to it's defence. For FY25, its defence budget increased by 16.4 per cent to whooping $7.37 billion — nearly 2 per cent of GDP. Meanwhile, its foreign debt stands at around 42 per cent of GDP, with about 82 per cent of military imports from China between the years 2019 and 2023.

The contrast is striking: in 2005, Pakistan’s GDP was about 1.5 times larger than Maharashtra’s. But today, Maharashtra’s is about 45% bigger than Pakistan’s entire economy. Tamil Nadu, once at 37 per cent of Pakistan’s size, is now virtually equal and might even surpass in near future. The struggles for Pakistan refuse to die down, and it is not just with India — it’s lagging behind its former peers at the subnational level.

As the dust from 'Operation Sindoor' settles, a new revelation has laid bare Pakistan's economic situation. Pakistan’s economy has deteriorated to the point where its national economy now lags behind Indian states like Maharashtra and Tamil Nadu, two of India’s strongest regional economies.

According to the World Bank and the Reserve Bank of India data, Pakistan’s GDP in 2004–05 stood at $132 billion. That same year, Maharashtra’s Gross State Domestic Product (GSDP) was about $92 billion, whereas Tamil Nadu’s $48 billion — both significantly smaller.

Fast forward to 2023–24, Maharashtra’s economy has shown a significant growth of approximately $490 billion, and Tamil Nadu’s economy grew to $329 billion. Meanwhile, Pakistan’s GDP is estimated between $338 billion and $373 billion, depending on the source and fiscal timing according to the data.

It is important to mention that while Pakistan’s economy has nearly tripled over two decades, the pace has not kept up. This was a result of multiple factors combined, such as political instability, low industrial growth, high inflation, and repeated bailouts that weighed it down. Recently, the IMF approved a second disbursement of $1.02 billion as part of a broader Extended Fund Facility — marking Pakistan’s 24th bailout since 1958.

India’s GDP now exceeds $4 trillion, growing at 6.4 per cent in 2025, while Pakistan grew at just 2.6 per cent, according to a recent report by the IMF. Much of the growth in Tamil Nadu and Maharashtra has come from rapid industrialisation, services, and consistent foreign investment. Tamil Nadu, being a major hub for automotive, electronics and green energy, while Maharashtra hosting India’s financial capital, Mumbai have shown significant progress.

Pakistan, however, continues to allocate a major chunk of money and resources to it's defence. For FY25, its defence budget increased by 16.4 per cent to whooping $7.37 billion — nearly 2 per cent of GDP. Meanwhile, its foreign debt stands at around 42 per cent of GDP, with about 82 per cent of military imports from China between the years 2019 and 2023.

The contrast is striking: in 2005, Pakistan’s GDP was about 1.5 times larger than Maharashtra’s. But today, Maharashtra’s is about 45% bigger than Pakistan’s entire economy. Tamil Nadu, once at 37 per cent of Pakistan’s size, is now virtually equal and might even surpass in near future. The struggles for Pakistan refuse to die down, and it is not just with India — it’s lagging behind its former peers at the subnational level.