Indiana Economy

$421 Billion GDP — America's Manufacturing Backbone

$420.6B
State GDP
#16
GDP Rank (U.S.)
3.3%
Unemployment Rate
$62,743
Median Household Income
$46.8B
Annual Exports
3.4M
Labor Force

Top Industries by GDP Share

Indiana is the most manufacturing-intensive state in America by GDP share. More than a quarter of the state's economic output comes from manufacturing — steel, auto parts, pharmaceuticals, and medical devices lead the way. This manufacturing base, combined with Indiana's central location and extensive highway network, has made the state a logistics powerhouse.

Manufacturing
27.1%
Health Care & Social Assistance
14.2%
Retail Trade
10.8%
Finance & Insurance
7.5%
Transportation & Warehousing
5.9%
Construction
5.2%
Agriculture
4.3%
Professional & Technical Services
5.8%
Accommodation & Food Services
3.1%
Government
10.4%

Industry Details

Industry GDP Share Employees Details
Manufacturing 27.1% 532,000 Largest manufacturing state by GDP share
Health Care & Social Assistance 14.2% 456,000 Major hospital systems statewide
Retail Trade 10.8% 338,000 Significant logistics and distribution hubs
Finance & Insurance 7.5% 124,000 Growing sector in Indianapolis
Transportation & Warehousing 5.9% 178,000 Crossroads location drives logistics
Construction 5.2% 152,000 Steady growth from suburban expansion
Agriculture 4.3% 68,000 Top 10 in corn, soybeans, and pork
Professional & Technical Services 5.8% 142,000 IT, engineering, and consulting firms
Accommodation & Food Services 3.1% 278,000 Tourism and hospitality
Government 10.4% 372,000 State, local, and federal employment

Major Employers

Company Industry Headquarters Indiana Employees
Eli Lilly and Company Pharmaceuticals Indianapolis 10,400+
Cummins Inc. Engine Manufacturing Columbus 8,500+
Anthem (Elevance Health) Health Insurance Indianapolis 8,000+
Roche Diagnostics Medical Devices Indianapolis 5,000+
Rolls-Royce Aerospace Indianapolis 4,000+
Salesforce Technology Indianapolis 3,500+
Cook Medical Medical Devices Bloomington 3,300+
Steel Dynamics Steel Manufacturing Fort Wayne 3,000+
Zimmer Biomet Medical Devices Warsaw 2,800+
Berry Global Packaging Evansville 2,500+

Top Exports

Indiana exports $46.8 billion worth of goods annually.

Top Products

  1. 1 Pharmaceuticals
  2. 2 Vehicle Parts
  3. 3 Optical/Medical Equipment
  4. 4 Organic Chemicals
  5. 5 Machinery

Top Destinations

Canada Mexico United Kingdom France Japan

Tax Structure

Income Tax Rate3.05% (flat)
Sales Tax Rate7%
Corporate Tax Rate4.9%
Property Tax Cap (Homestead)1% of assessed value
Property Tax Cap (Other)2%
Property Tax Cap (Commercial)3%

Indiana's flat income tax and constitutional property tax caps make it one of the most competitive tax environments in the Midwest.

Agriculture

With 56,800 farms covering 14.7 million acres (64.8% of the state's land area), agriculture remains a cornerstone of Indiana's economy and identity. The average farm is 259 acres.

Crop / Product U.S. Rank Value Production
Corn #5 $5.2B 5.5M
Soybeans #4 $3.8B 5.8M
Hogs #5 $1.4B 4.3M
Poultry/Eggs #8 $1.1B 33M
Dairy #15 $0.6B 193K
Hay #18 $0.3B 590K
Wheat #12 $0.3B 380K
Tomatoes #3 $0.2B 4.2K

Cost of Living

Indiana's cost of living index is 90.5, roughly 10% below the national average of 100. Housing is particularly affordable: the median home value is $183,200 and median monthly rent is $935.

Cost of Living Index90.5 (national avg: 100)
Median Home Value$183,200
Median Monthly Rent$935
Homeownership Rate69.8%
Broadband Access87.3%
Health Insurance Coverage92.1%

How Indiana Compares: Neighboring States

Indiana's economy stacks up favorably against its neighbors in cost of living, unemployment, and manufacturing intensity, while lagging slightly in median income compared to Illinois.

Metric Indiana Ohio Illinois Michigan Kentucky
Population 6,833,037 11,780,017 12,582,032 10,037,261 4,526,154
Median Household Income $62,743 $61,938 $72,205 $63,498 $55,573
Median Home Value $183,200 $175,300 $239,100 $186,600 $164,000
Cost of Living Index 90.5 93.2 101.3 95.1 90.3
Unemployment Rate 3.3% 4% 4.4% 4.2% 3.9%
Poverty Rate 11.4% 13.4% 11.1% 14% 15.5%
High School Grad Rate 89.2% 90.1% 89.2% 91% 87.5%
Homeownership Rate 69.8% 66.3% 66.3% 72.4% 67.4%
Manufacturing (% of GDP) 27.1% 16.8% 12.1% 18.5% 17.2%