Gujarat and Maharashtra have emerged as the frontrunners in bank-financed, capacity-enhancing projects in India between FY15 and FY25, according to recent data from the banking sector. Gujarat topped the list, followed closely by Maharashtra, reflecting strong industrial and infrastructure activity in these states even amid cautious investment sentiment nationwide.

Together, the two states accounted for a significant share of the total project costs sanctioned by banks over the decade, highlighting their dominant position in attracting financial support for large-scale initiatives. Analysts note that robust governance, investor-friendly policies, and well-developed industrial ecosystems have contributed to this sustained momentum.

The trend underscores the importance of regional strategies in mobilizing bank finance for growth-oriented projects. Gujarat, with its emphasis on manufacturing, renewable energy, and port-led development, has consistently attracted substantial credit inflows. Maharashtra, India’s financial hub, has leveraged its diverse industrial base and infrastructure capabilities to maintain a leading position in project financing.

Financial institutions have been selective in sanctioning loans for new projects nationally, given broader economic uncertainties. Despite this cautious approach, Gujarat and Maharashtra have continued to secure large portions of sanctioned credit, reflecting strong project viability and investor confidence. Banks’ emphasis on due diligence and risk assessment has ensured that funds are directed toward projects with high potential for capacity expansion and returns.

Experts highlight that these trends have wider economic implications, including job creation, regional development, and increased industrial output. The success of these two states in securing bank finance demonstrates how policy support, infrastructure readiness, and a favorable business environment can drive investment even during periods of moderate national economic growth.

As India seeks to boost industrial capacity and infrastructure development in the coming years, the experience of Gujarat and Maharashtra offers a blueprint for other states aiming to attract bank-financed projects and stimulate economic growth.