Purpose: The GDP growth of the Indian subcontinent was continuous and rapid in last decade. The states play an important role in this. The current study evaluates the role of Gujarat, Punjab and Himachal Pradesh in this and further it compares the growth of these states. The study also finds the reason behind the disparity in the growth of industries in these states. Methodology: The data of selected industries from 2005-06 to 2007-08 has been taken as sample for the purpose of study. The secondary data has been used for the present research. Descriptive statics is being used to check the normality and the average. The line graphs have been used to compare the growth rate of the states. Findings: The findings reveal that the Gujarat is the most leading states among all three. There are several reasons behind this growth. The government policies, High per capita income, geographical advantage played an important role in the growth of the Gujarat, whereas Himachal is also showing the signs of growth after a slow down in the fiscal year of 2006-07. In the case of Punjab the government have to rethink about the policies. Originality: The research compared the industrial growth of the three states: Gujarat, Punjab and Himachal Pradesh. The secondary data has been collected and used for the purpose of the study and study revealed the important facts behind the disparity among the growth rate of the states.