Have you ever wondered which state in India has the most educated people? The answer might surprise you. For many years, Kerala was the number one state. But now, a small state in Northeast India has taken the top spot. Let's find out everything about it. Which State in India Has the Highest Literacy Rate? Mizoram is now the most literate state in India with a literacy rate of 98.2%. That means out of every 100 people in Mizoram, 98 can read and write. That is an incredible number.