In a dramatic display of economic strength and administrative resilience, M. K. Stalin, Chief Minister of Tamil Nadu, has once again positioned his state at the forefront of India’s growth narrative, showcasing that capable governance can triumph even amid lackluster support from the Union Government.
The Economic Survey of Tamil Nadu 2025–26, released by the State Planning Commission, reports that the state recorded an impressive 11.19% growth rate in 2025–26, nearly double the national average, underlining its status as one of India’s fastest-growing major economies.
Manufacturing Leads the Surge
Tamil Nadu’s manufacturing sector emerged as the principal driver of growth, expanding by 14.74%, significantly higher than the national average of 4.5%. The state accounts for nearly 15% of India’s total manufacturing output and continues to lead in automobiles, electronics, textiles and leather production.
Merchandise exports reached US$52.07 billion, placing Tamil Nadu among the country’s top exporting states. The sustained industrial momentum reflects consistent policy direction, infrastructure strengthening and investor engagement undertaken by the Stalin administration.
Strong Services and Infrastructure Push
The services sector recorded an 11.3% expansion, supported by growth in logistics, information technology, hospitality and allied industries. The government reported capital expenditure of ₹2.54 lakh crore, channeled into roads, ports, metro rail expansion, industrial corridors and logistics infrastructure. Officials state that every district in Tamil Nadu is connected to at least one industrial corridor, reflecting a strategy aimed at ensuring balanced regional development and distributed economic opportunity.
Social Investment and Human Development
Alongside economic growth, the state expanded social sector spending to ₹1,57,864 crore, covering education, healthcare and welfare programmes. Tamil Nadu’s infant mortality rate stands at 12 per 1,000 live births, among the lowest in India, while the Gross Enrolment Ratio in higher education has reached 47%, considerably higher than the national average of 28.4%.
The unemployment rate declined to 3.5%, and labour force participation rose to 72.1%, indicating increased workforce engagement across sectors.
Rising Incomes and Agricultural Strength
Per capita income in Tamil Nadu has risen to ₹3.62 lakh, approximately 1.77 times the national average, reflecting higher income levels and improved standards of living.
The agriculture sector contributed ₹1.9 lakh crore to the state economy, with Tamil Nadu ranking first in ragi and sugarcane yields.
Foreign Direct Investment inflows amounted to US$3,681 million, underscoring continued investor confidence.
The state government has set an ambitious target of transforming Tamil Nadu into a US$1 trillion economy by 2030, with manufacturing expansion, export growth, infrastructure development and human capital investment identified as key pillars. The latest economic data highlights the scale and breadth of growth achieved under Chief Minister M. K. Stalin’s leadership, positioning Tamil Nadu as a leading contributor to India’s overall economic performance.
– Magizh
