New Delhi, July 29 -- Revenue growth of India's 18 largest states, which account for over 90 per cent of the gross state domestic product, is likely to witness a marginal uptick at 7-9 per cent on-year this fiscal to Rs 40 lakh crore, according to a report by Crisil Ratings.

The credit rating agency stated that these figures, however, will be slightly higher than the 6.6 per cent notched up last fiscal, though lower than the decadal growth of about 10 per cent.

The marginal uptick will be supported by expectation of steady GST (Goods and Services Tax) collections and devolutions from Centre, while grants are expected to witness recovery during fiscal 2026, after a fall last fiscal.

States have two revenue streams - the states own reven...