India’s Growing Wealth: Maharashtra Leads the Millionaire Boom

India’s wealth creation is booming, with Maharashtra leading with 1,78,600 millionaire households, a 194% rise since 2021. The Mercedes-Benz Hurun India Wealth Report 2025 highlights how high tax-to-GSDP ratios in states like Maharashtra (19%) and Delhi (18%) correlate with wealth concentration. Karnataka, Tamil Nadu, and Gujarat follow as tech and industrial hubs. Emerging regions like Telangana and Haryana showcase rapid growth, while Mumbai, Delhi, and Bengaluru remain wealth epicenters.

India’s economic landscape is undergoing a remarkable transformation, with Maharashtra emerging as the nation’s top hub for creating wealth. According to the Mercedes-Benz Hurun India Wealth Report 2025, the state now boasts 1,78,600 millionaire households, reflecting an astonishing 194% growth since 2021. This milestone underscores a broader trend where India's rising prosperity is being effectively formalized through higher tax collection and an expanding millionaire base.

Wealth Creation Tied to Tax Efficiency

The report highlights a compelling connection between states with higher income tax-to-GSDP ratios and their concentration of millionaire households. Maharashtra and Delhi, leading with tax collections of 19% and 18% of their GSDP respectively, also rank as the top regions for millionaires. This correlation reveals two key insights: India’s wealth creation is accelerating, and the formalization of its economy through taxes is gaining momentum.

Tax Collection as an Indicator of Formalisation

The income tax-to-GSDP ratio offers a unique perspective on how formalized a state’s economy is. Maharashtra leads the pack, collecting ₹7.6 lakh crore in taxes in FY24, which amounts to 19% of its GSDP. Delhi follows closely at 18%, while Karnataka, Tamil Nadu, and Uttarakhand lag behind with ratios of 9% and 5% respectively. States like Gujarat and West Bengal, despite their industrial prominence, report a tax-to-GSDP ratio of only 4%, reflecting a less formalized economic structure.

In contrast, Uttar Pradesh and Bihar, with income tax-to-GSDP ratios of 1.89% and 0.78% respectively, highlight the challenges of formalizing economies dominated by agriculture and informal sectors. This data underscores how states with more formalized economic setups tend to have higher concentrations of wealth and millionaire households.

The Millionaire Surge: A State-Wise Analysis

India now boasts 8,71,700 millionaire households, with growth rates varying widely across states. Maharashtra and Delhi dominate this list, thanks to their robust economies and high tax efficiency. Other states like Tamil Nadu, Karnataka, and Gujarat are also witnessing significant growth, driven by a combination of industrial expansion, technology hubs, and rising numbers of active companies.

Maharashtra: The Wealth Powerhouse

Maharashtra leads the wealth race with 1,42,000 millionaire households. This is fueled by its massive GSDP of over ₹40.5 lakh crore, comparable to the economy of Norway. Mumbai alone contributes 80% of these households, cementing its status as the financial capital of India.

Delhi: The National Capital’s Wealth Machine

Delhi ranks second with 68,200 millionaire households, accounting for 85% of the Union Territory’s wealth base. Its high-income economy is powered by real estate, corporate headquarters, and high-value services, supported by a tax-to-GSDP ratio of 18%.

Tamil Nadu: A Rising Star

Tamil Nadu claims the third spot with 72,600 millionaire households, marking a 75% growth. This is driven by a 52% increase in GSDP and a 36% rise in active companies. However, its tax-to-GSDP ratio of 5% suggests room for greater formalization.

Karnataka: The Tech Ecosystem’s Impact

With 68,800 millionaire households, Karnataka ranks fourth, showcasing an 88% growth rate. Its wealth is largely concentrated in Bengaluru, which accounts for 46% of the state’s millionaires. Karnataka’s 9% tax-to-GSDP ratio reflects its highly formalized economy, bolstered by a thriving tech and startup ecosystem.

Gujarat: An Industrial Giant

Gujarat rounds out the top five with 68,300 millionaire households, an 89% increase. While its GSDP grew by 50% and active companies rose by 39%, its tax-to-GSDP ratio of 4% highlights the need to bring more wealth into the formal tax net.

Emerging Wealth Centers: Telangana, Haryana, and Uttar Pradesh

Beyond the top five, states like Telangana, Haryana, and Uttar Pradesh are rapidly emerging as new hubs of wealth:

• Telangana has seen a 138% growth in millionaire households, driven by its booming tech and pharmaceutical industries. Its tax-to-GSDP ratio stands at 6%.

• Haryana experienced a 91% increase, supported by Gurugram’s position as a corporate and IT center. The state’s tax-to-GSDP ratio is 7%.

• Uttar Pradesh, India’s most populous state, reported a 58% rise in millionaire households. Despite a 56% increase in its economy, its low tax-to-GSDP ratio of 1.89% reflects its agrarian and informal economic structure.

  
  

Wealth Concentration in Urban Centers

India’s wealth remains concentrated in its major cities, with urban centers hosting the densest clusters of millionaires. The top cities include:

• Mumbai: 1,42,000 millionaire households.

• New Delhi: 68,200.

• Bengaluru: 31,600.

• Ahmedabad: 26,800.

• Kolkata: 26,600.

• Chennai: 22,800.

• Pune: 22,500.

• Hyderabad: 19,800.

  
  

Emerging cities such as Gurugram, Surat, Jaipur, Vadodara, and Nagpur are also witnessing rapid growth in wealth creation.

Formalisation Fuels Prosperity

India’s wealth creation story is no longer about just economic growth but also how effectively this prosperity is being formalized. States like Maharashtra, Delhi, and Karnataka exemplify how high-income economies with strong tax efficiency can drive millionaire growth. At the same time, regions like Telangana and Haryana are quickly catching up, signaling a more widespread distribution of wealth in the years to come. As India continues to formalize its economy, the rise of millionaire households is set to become a defining feature of its growth trajectory.