The survey, released ahead of the 2025-26 state budget on Friday, 14 March, positions Tamil Nadu as one of India’s richest and most economically resilient states, highlighting balanced growth, rising incomes, and strong social development.
Published Mar 13, 2025 | 4:55 PM ⚊ Updated Mar 13, 2025 | 4:55 PM
Synopsis: The Tamil Nadu Economic Survey 2024-25 highlights the state’s strong and resilient economic growth, with an annual expansion of over 8 percent since 2021-22. It attributes this progress to a diversified economy, stable governance, and progressive social policies.
Tamil Nadu has sustained strong economic growth despite global uncertainties, expanding at over 8 percent annually since 2021-22, according to the Economic Survey of Tamil Nadu 2024-25.
The survey, released ahead of the 2025-26 state budget on Friday, 14 March, positions Tamil Nadu as one of India’s richest and most economically resilient states, highlighting balanced growth, rising incomes, and strong social development.
It presents an optimistic outlook, crediting Tamil Nadu’s diverse economy, stable governance, and the Dravida Munnetra Kazhagam (DMK)-led government’s progressive social policies for its sustained growth.
Tamil Nadu’s Gross State Domestic Product (GSDP) at current prices reached ₹27.22 lakh crore in 2023-24, the survey notes, contributing 9.21 percent to India’s Gross Domestic Product (GDP).
This comes despite India’s GDP growth slowing to 6.48 percent in 2024-25, and Tamil Nadu accounting for just 4 percent of India’s land area and 6 percent of its population.
The survey credits Tamil Nadu’s diversified urban growth across multiple cities – including Chennai, Coimbatore, Madurai, Tirupur, Tiruchirappalli, and Salem – for its economic stability.
Unlike other economically forward states where economic activity is concentrated in a single metropolitan centre, the survey states that Tamil Nadu’s multi-city model has helped bridge the urban-rural divide.
Tamil Nadu’s economy is primarily service-driven, with the services sector contributing 53.63 percent of the Gross State Value Added (GSVA), particularly in education and healthcare, according to the survey.
The industrial sector accounts for 33.37 percent, while agriculture contributes 13 percent.
The survey highlights Tamil Nadu’s strong performance in education, ranking second in NITI Aayog’s School Education Quality Index and boasting one of the highest Gross Enrolment Ratios (GER) in primary, secondary, and higher education.
Healthcare infrastructure is also well-developed, with 8,713 health sub-centres, 2,336 primary health centres (PHCs), and 372 government hospitals, ensuring widespread access to medical services, the survey notes.
Similarly, Tamil Nadu remains a major industrial hub, particularly in automobiles, textiles, and leather exports, while also expanding its presence in semiconductors, electronics, IT services, logistics, and renewable energy.
The survey states that the DMK-led government is pushing for rapid industrial expansion to create employment opportunities, aligning with its target of making Tamil Nadu a $1 trillion economy by 2030.
Agriculture remains a key sector, contributing ₹1.5 lakh crore (6 percent of GSVA
Tamil Nadu leads in oilseeds, groundnut, sugarcane, and maize productivity, while paddy cultivation expanded to 34.4 percent of the total cropped area in 2023-24, the survey notes.
It further notes that access to agricultural credit has been a key focus of the DMK-led government and strong government support for farmers, including an incentive of ₹105 per quintal for paddy and ₹215 per tonne for sugarcane has made Tamil Nadu the top state in India for farm loan disbursals.
Tamil Nadu’s per capita income stood at ₹2.78 lakh in 2022-23, 1.6 times the national average (₹1.69 lakh), placing it among India’s wealthiest states.
The survey reports a sharp decline in poverty, with rates dropping from 36.54 percent in 2005-06 to just 1.43 percent in 2022-23 – far lower than the national average of 11.28 percent.
It attributes this progress to the DMK-led government’s emphasis on social development.
Meanwhile, as India faces rising inflation, Tamil Nadu’s retail inflation has declined from 6 percent in 2022-23 to 4.8 percent in 2024-25 (as of January 2025), according to the survey.
Urban inflation has also fallen from 6 percent in 2019-20 to 4.5 percent in 2024-25.
The survey attributes this decline to government interventions, including the Kalaignar Mahalir Urimai Thogai (a basic income scheme for women), subsidised food grains, and electricity price controls, which have helped cushion households from inflationary pressures.
Tamil Nadu’s diverse cultivation patterns make it particularly vulnerable to rising global temperatures, with unpredictable weather patterns affecting agricultural productivity..
The state’s mean temperature has increased by 0.68°C per century, leading to more frequent cyclones and floods, the survey notes.
To combat these challenges, the government has introduced the Tamil Nadu State Action Plan on Climate Change (2023-30) and established a ₹1,000 crore Green Fund for climate mitigation projects.
Tamil Nadu also topped NITI Aayog’s Climate Action Index (SDG 13) with a score of 81, which the survey credits as reinforcing the state’s position as a leader in sustainable development.
(Edited by Dese Gowda)
