Tamil Nadu's first Economic Survey forecasts growth rate to exceed 8%
Survey says TN remains global leader in automobile manufacturing, textiles, leather goods, and electronics, making significant contributions to India’s manufacturing GDP, accounting for 11.90% of national output
Tamil Nadu, India’s second richest state, is positioning itself to become a $1 trillion economy by 2030. With strategic investments and a diversified economic base, the state is on track to surpass national growth projections, according to the Tamil Nadu Economic Survey 2025. Authored by the State Planning Commission, this is Tamil Nadu's first ever economic survey.
Robust growth
Despite global economic headwinds, the state’s performance in the 2024-25 fiscal year remains robust, with the growth rate forecast to exceed 8 per cent, solidifying Tamil Nadu’s status as a crucial contributor to India's economic growth.
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In 2023-24, Tamil Nadu’s Gross State Domestic Product (GSDP) reached Rs 27.22 lakh crore, reflecting a nominal growth of 13.71 per cent and a real growth rate of 8.33 per cent, as highlighted in the Economic Survey 2025.
TN’s share to GDP
The state has also maintained its longstanding share of 9.21 per cent of India’s national GDP and has recorded a per capita income of Rs 2.78 lakh which is also significantly higher than the national average, the survey pointed out.
Tamil Nadu, touted to be India’s most industrialised state, remains a global leader in automobile manufacturing, textiles, leather goods, and electronics, making significant contributions to India’s manufacturing GDP, accounting for 11.90 per cent of the national output, as noted in the survey.
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The spread of economic activity across urban centres like Coimbatore, Madurai, and Tirupur has led to a more balanced growth trajectory, which has helped shield the state from global economic shocks, the survey added.
Must do: Reskilling workforce
However, the survey emphasised that to sustain industrial growth, Tamil Nadu must focus on reskilling its workforce to align with the adoption of Industry 4.0 technologies.
The services sector continues to dominate Tamil Nadu’s economy, contributing 53.63 per cent to the state’s Gross State Value Added (GSVA). Manufacturing follows closely with a 33.37 per cent share, while agriculture, despite facing challenges such as groundwater depletion and climate change, remains vital, contributing 6 per cent to GSVA.
The survey also explained the state’s measures in proactively adopting climate-smart agricultural practices in order to reduce reliance on water-intensive crops and chemical fertilisers.
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Labour market
Labour market dynamics also reflect positive trends. Tamil Nadu’s Labour Force Participation Rate (LFPR) increased to 64.6 per cent between 2019-20 and 2023-24, surpassing the national average of 64.3 per cent. This rise underscores the state’s commitment to creating quality jobs, particularly in manufacturing and services, ensuring a more stable economic outlook, the survey said.
The report also highlighted the outcome of the state’s Global Investors Meet where Tamil Nadu secured Rs 6.64 lakh crore in investments, projected to generate 14.55 lakh jobs underscoring the state’s potential in garnering foreign investments.
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Tamil Nadu’s medium-term success will depend on leveraging its demographic dividend and infrastructure with a focus on sustainability, the survey concluded.
