Which State Leads in Tax Growth: Odisha Leads GST Growth, Telangana Tops Direct Taxes Odisha-leads-gst-collection.jpg

Odisha and Telangana are emerging as significant contributors to India's tax landscape, with Odisha leading in GST growth and Telangana excelling in direct tax collections.
This shift challenges the dominance of traditional economic powerhouses like Maharashtra and Karnataka.
Odisha's Remarkable GST Growth
Odisha has achieved a compound annual growth rate (CAGR) of 22.4% in GST collections between FY18 and FY25. This growth has propelled Odisha from the 12th position in FY18 to the 10th in FY25 among states with GST collections exceeding ₹5,000 crore.
The state's GST collections surged from ₹14,849 crore in FY18 to ₹60,928 crore in FY25. Odisha's mineral wealth and e-auction policy for mineral blocks have significantly contributed to this growth.
Telangana's Direct Tax Success
Telangana has recorded a CAGR of 50.7% in direct tax collections from FY19 to FY24. The state's collections rose from ₹10,860 crore in FY19 to ₹84,439 crore in FY24, elevating it from the 15th to the 6th position nationally.
Hyderabad's emergence as a major Global Capability Centre and IT hub has played a crucial role in boosting direct tax collections.
Read More: Economic Reforms 2025 Recap: How Did GDP Grow From 5.4% in Q2FY25 to 8% in Q2FY26?!
Impact on State Rankings
The rapid growth in tax collections has reshuffled state rankings. In GST collections, Haryana replaced Uttar Pradesh in the top 5, while Maharashtra, Karnataka, Gujarat, and Tamil Nadu maintained their positions.
In direct taxes, Karnataka overtook Delhi for the 2nd spot, with Telangana making significant strides.
Conclusion
Odisha and Telangana's impressive growth in GST and direct tax collections, respectively, highlight the evolving tax landscape in India. While traditional economic giants continue to lead in absolute terms, these emerging states demonstrate the potential for significant contributions to the national economy.
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Published on: Dec 26, 2025, 11:55 AM IST

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