Society 5.0 represents a transformative era where the convergence of technology and society reshapes decision-making processes. This paper explores the challenges and opportunities in decision-making within Society 5.0 and focuses on the Sustainable Development Goals (SDGs) as a critical framework for sustainable development. Assessing the progress of Indian states toward these goals is crucial for effective policy formulation. To comprehensively analyze the performance of Indian states in achieving the SDGs, this study employs the TOPSIS method and cluster analysis. Integrating these approaches establishes a robust framework for benchmarking and evaluating state performance. The findings provide valuable insights into progress variations, identifying improvement areas and enabling targeted policy interventions and resource allocation. This research enhances our understanding of sustainable development progress at India’s state level. By informing policy decisions and fostering effective strategies, it contributes to the successful implementation of the SDGs. The manuscript presents the methodology, data analysis, and results, providing a structured assessment of Indian states’ SDG performance. Through this study, we aim to support evidence-based decision-making and promote sustainable development in India.