New Delhi: Tamil Nadu has been ranked as the best performing state on eight out of nine development parameters like economy, power, roads and health while Kerala secured the second slot, according to an Assocham study.

Except for education, Tamil Nadu remained the best performing state in all other parameters. Kerala was the best state in overall development, income and removing inequality, health, roads and overall development.

The states have been given ranking on the basis of their performance in the years 2009-2011 and 2012-14, the industry body said.

"Tamil Nadu has ranked among the best performing states in terms of eight out of nine development parameters like economy, power, roads and health while Kerala was a pleasant surprise on the second spot," Assocham said.

Gujarat, Andhra Pradesh, Bihar and West Bengal were best performing states in four each of the nine parameters while Uttar Pradesh, Haryana, Karnataka, Haryana, Maharashtra and Odisha were best in three of the criteria, the study said.

Significantly, in three of their criteria, Odisha and West Bengal had two related to roads and availability of electricity, the two most important factors which can make them favourites among the investors.

"Both these states now need to put in place a favourable investment climate through policy interventions on land acquisition and other clearances and they could do much better," Assocham President Rana Kapoor said.

In terms of income and equality, states including Kerala, Telangana, Haryana, Himachal Pradesh, Andhra Pradesh Punjab performed well whereas the worst performing states were Assam, Madhya Pradesh, Bihar, Uttar Pradesh, Odisha, Jammu and Kashmir and Chhattisgarh.

Gujarat, Tamil Nadu, Maharashtra, Karnataka, Rajasthan, Uttar Pradesh and Madhya Pradesh were among the top states in industrial development.

In the crucial area of road connectivity, Assam, Bihar, Kerala, Odisha, Uttar Pradesh, Tamil Nadu and West Bengal were the best states.