Punjab has been ranked as the best state in terms of eight parameters, including economic and social sector development and law and order, for the fifth consecutive year by India Today's fifth annual 'State of the States Report', followed by Kerala.

Next in line are Himachal Pradesh and Tamil Nadu while Bihar is placed at the bottom.

Among small states, Puducherry, using its strong agrarian economy to invest in health and infrastructure, has been ranked first with Goa and Delhi featuring in second and third places.

Chandigarh continued rule the roost for the third three year among Union Territories, followed by Andaman and Nicobar Islands and Lakshadweep.

The report reveals that very little has changed in the rankings across five years, despite some movement that is largely incremental and at the margins.

Assam has emerged as the fastest mover in overall ranking while Tamil Nadu, Gujarat and Maharashtra have been successful in manitaining their leads.

The performance of states and union territories was judged on eight different parameters including law and order, agriculture, primary education, primary health, infrastructure, consumer market, investment environment and budget and prosperity.

''Punjab, which has emerged the best overall big state for the fifth year in a row is an excellent example of economic development.

Investment in irrigation and infrastructure improved yields and incomes creating a consumer market that delivers revenue,'' the report said.

The study, which provides a window to the performance or the lack of it amongst big and small states, clearly established the fact that those who have addressed the social issues-- investment in agriculture, eduaction and health-- have been able to weather the storm of change.

Although the topper, Punjab had been slipping on five parameters in the past three years, which had led to a slippage in investment scores, but there seems to have been some course correction with scores improving on six parameters but political populism has led to lower score in macro-economic management, the report added.

Assam, otherwise lagging at number 14 amongst big states, has shown spectacular results in poverty reduction by trimming it down by 21 per cent. It has also emerged as the fastest mover in overall rankings. Mizoram has come up from behind to oust Goa as the best among small states in primary education. Madhya Pradesh, where the last elections were fought on ''bijli sadak paani'' slogan, is the fastest mover in agriculture and infrastructure.

Uttar Pradesh similarly has improved the most in primary health and education. Orissa has retained the fastest mover tag in macro economic development while Karnataka has bagged the most improved state award in law and order.

''West Bengal can boast of the most stable political climate amongst all states. But its performance is pathetic in areas like education where it is ranked 13, health (11), law and order (16) and infrastructure and budget management (15) in the large states,'' the report said.

Bihar holds the dubious distinction of being ranked number 20 for four out of five years among large states. Jharkhand, a newly created state is also not performing well.