Background Women's empowerment is critical for achieving gender equality and societal progress. Despite various efforts, significant disparities in women's empowerment persist across different states in India. This study aims to provide a comprehensive assessment of women's empowerment using data from the National Family Health Survey 5 (NFHS-5). Methods Data from the NFHS-5, collected between June 2019 and April 2021, were used. The Women's Empowerment Index (WEI) was calculated for each of the 28 states based on four dimensions: economic empowerment, decision-making, health and nutrition, and gender roles. Statistical analysis, including Pearson and Spearman correlations, was conducted to assess associations between WEI and various socioeconomic variables. Results The WEI ranged from 17.4 to 27.4, with a mean of 21.3 ± 2.6. Goa, Sikkim, and Himachal Pradesh had the highest WEI scores, while West Bengal, Andhra Pradesh, and Telangana had the lowest. Economic empowerment was highest in Karnataka, Sikkim, and Arunachal Pradesh. Decision-making scores were highest in Nagaland, Mizoram, and Goa. Health and nutrition scores were highest in Goa, Sikkim, and Uttarakhand. Positive gender roles were most prominent in Himachal Pradesh, Nagaland, and Goa. Significant correlations were found between WEI and per capita net state domestic product, literacy rates, median age at marriage, and total fertility rate. Conclusion The study highlights substantial variations in women's empowerment across Indian states, influenced by socioeconomic, health, and educational factors. Targeted interventions are needed to address specific barriers and promote gender equality. Future research should evaluate the effectiveness of these interventions and explore additional factors influencing women's empowerment.