Tamil Nadu’s Economic Survey 2024–25 presents the picture of a state that has not merely weathered global economic turbulence but emerged with its growth engine firmly intact. Against the backdrop of geopolitical tensions, climate shocks and supply-chain disruptions worldwide, the state has sustained economic growth of over 8 per cent for the fourth consecutive year, underlining its structural strength and policy continuity.
With just 4 per cent of India’s land area and 6 per cent of its population, Tamil Nadu accounted for 9.21 per cent of the national GDP in 2023–24. Its Gross State Domestic Product stood at ₹27.22 lakh crore, registering a real growth of 8.33 per cent. The survey attributes this performance to a mix of progressive social policies, robust infrastructure, a skilled workforce and a diversified economic base.
The state’s economy mirrors that of advanced regions, with the services sector contributing over 53 per cent of Gross State Value Added, followed by industry at 33 per cent and agriculture at 13 per cent. Unlike states heavily dependent on a single metropolitan hub, Tamil Nadu’s growth is geographically spread across cities such as Coimbatore, Madurai, Tiruppur, Tiruchirappalli and Salem, helping narrow the urban-rural divide.
Tamil Nadu’s industrial credentials remain its defining strength. It contributes nearly 12 per cent of India’s manufacturing GDP, leads the country in the number of factories, and houses over 35 lakh MSMEs. Known as the “Detroit of India”, the state dominates automobile and auto-component manufacturing, while also ranking at the top in textiles, leather, electronics and engineering exports. Manufacturing and construction together employ nearly one-third of the workforce, with several industrial sub-sectors recording double-digit growth.
Agriculture, though smaller in share, remains critical to livelihoods. Tamil Nadu ranks first nationally in productivity of oilseeds, groundnut and sugarcane, and second in maize. The survey notes expanding horticulture, strong livestock output, and rising agricultural credit, even as it flags groundwater depletion and climate risks as growing concerns.
On the social front, the survey highlights Tamil Nadu’s strong human development outcomes. Per capita income at ₹2.78 lakh is among the highest in India, poverty has declined sharply to 1.43 per cent, and the state ranks at or near the top on education, health, social progress and financial inclusion indicators. Inflation has eased steadily, falling to 4.8 per cent in 2024-25, with state interventions helping cushion vulnerable households.
Looking ahead, Tamil Nadu has set an ambitious target of becoming a $1-trillion economy by 2030. The roadmap centres on high-value manufacturing, services, skill development, women’s workforce participation and frontier technologies such as semiconductors and advanced electronics. Climate resilience forms a parallel priority, backed by a dedicated climate action plan and a ₹1,000-crore Green Fund.
The survey’s central message is clear: Tamil Nadu’s economic story is one of resilience with responsibility—growth anchored in industry and services, supported by social investment, and increasingly shaped by sustainability imperatives.
The survey flags climate change, ageing population, groundwater stress, and skill mismatches as key challenges, while outlining a clear push towards a $1-trillion economy by 2030, driven by manufacturing, services, skills, and climate-conscious growth.
