In addition, the projections of the nominal GDP per capita revealed that the figures for Maharashtra and Gujarat will be similar to that of Mexico, while Tamil Nadu, Kerala, and Haryana will be on par with the Republic of South Africa by 2026. Based on the analysis of the growth patterns of Indian states, the following policy implications can be provided. First, forward-looking and more focused strategies need to be formulated with a particular focus on the states of Maharashtra and Gujarat which are to develop into leading economic hubs in India. At the same time, an approach geared toward domestic demand rather than manufacturing bases for exports is needed, taking into account unique attributes and medium/long-term development plans of Indian states. Second, a close watch should be kept over such states following closely behind the fast-growing/high-income group as Punjab, Orissa, Karnataka, and Madhya Pradesh; and accordingly, appropriate strategies targeting those states should be prepared. On the other hand, as for slow-growing/low-income states such as Bihar which carry high-growth opportunities as well as risks, close monitoring should be undertaken on their policy and business environments. For these states, an incremental strategy should be adopted for the medium/long-term, while targeting niche areas in the states in the near term. As Indian states' economic growth accelerates and income levels rise at a pace much faster than developed countries and other emerging economies, the industries and consumption demand will likely keep up a similar pace of change. In particular, infrastructure projects are likely to expand substantially, and as such, there is a need to capitalize on the immense demand for infrastructure development. Furthermore, it must be also noted that the consumption pattern will change fast with rising income levels in Indian states. Therefore, efforts are needed to respond flexibly to the changing trends and patterns of economic growth in Indian states, while paying particular attention to the metropolitan cities of India
