Remarkable Resilience! Tamil Nadu's Growth Rate Will Exceed 8%, finds Study
Overall, with just 4 per cent of India’s land area and 6 per cent of the country’s population, Tamil Nadu contributed 9.21 per cent to the national GDP in 2023-24.
Despite the onslaught of the pandemic in 2020 and 2021, and the natural disasters such as cyclone and flooding in the following three years, Tamil Nadu has demonstrated remarkable economic resilience, consistently achieving growth rates of 8 per cent or more, according to its first Economic Survey 2024-25. The State is expected to maintain a growth rate above 8 per cent in 2024-25, thanks to its "strong foundation of inclusive policies", it says.
The global economy posted a real growth rate of 3.33 per cent in 2023. India’s economy recorded 7.61 per cent growth in 2022-23, 9.19 per cent in 2023-24 and 6.48 per cent in 2024-25, it said
The Survey, prepared by the State Planning Commission with the Finance Department in coordination with various other departments, says Tamil Nadu’s per capita income growth has consistently outpaced the national average over the years. In 2022-23, it was Rs 2.78 lakh - 1.64 times the national average of Rs 1.69 lakh.
This makes Tamil Nadu the fourth-largest State in the country in terms of per capita income. Besides, unlike many other States where economic activity is revolving around one or two metropolitan cities, Tamil Nadu’s growth is well spread across cities. Urban centers such as Chennai, Coimbatore, Madurai, Tirupur, Tiruchirappalli and Salem play a vital role in the State’s economy, fostering balanced development and reducing the urban-rural divide, the survey adds.
The survey provides a detailed analysis of key sectors such as agriculture, industry, and services, examines trends in inflation, employment, and select social sector indicators, along with the medium-term growth outlook. It also outlines government policies, assesses their effectiveness, and presents growth prospects for 2024-25 and 2025-26, suggesting remedial measures to address short-term challenges and support sustained economic growth.
It also points out that Tamil Nadu’s progressive social policies, robust infrastructure facilities, and large skilled labour pool have enabled the State to position itself on an elevated economic development trajectory.
The State ranks first in automotive production, apparel and leather goods, and second in textiles, machinery and electronics. It is also a top exporter of engineering goods, electronics, garments, cotton yarn and leather products. In 2023-24, 33.31 per cent of the State’s workforce was engaged in industrial activities, with 15.97 per cent in manufacturing and 17.2 per cent in construction.
The manufacturing sector grew at 8.33 per cent between 2021-22 and 2023-24, while construction expanded by 9.03 per cent, driven by double-digit growth in transport equipment, rubber and plastic products and chemicals.
Overall, with just 4 per cent of India’s land area and 6 per cent of the country’s population, Tamil Nadu contributed 9.21 per cent to the national GDP in 2023-24. Its Gross State Domestic Product (GSDP), at current prices, reached Rs 27.22 lakh crore in 2023-24, posting a nominal growth rate of 13.71 per cent and a real growth rate of 8.33 per cent.
