CHENNAI: Tamil Nadu has recorded a remarkable real economic growth rate of 9.69% for the financial year 2024-25, making it the top-performing state in India. This growth is the highest in the last decade for Tamil Nadu, according to data from the Union Ministry of Statistics and Programme Implementation (MoSPI).
As per the MoSPI data, Andhra Pradesh registered the second highest growth rate in the country with 8.21%.
Key Economic Metrics:
GDP Value: Tamil Nadu’s Gross Domestic Product (GDP) rose to ₹17.23 lakh crore in 2024-25, up from ₹15.71 lakh crore in the previous fiscal year.
Historical Growth: The previous highest growth rate was 8.59% in 2017-18, while the lowest was just 0.07% during the COVID-19 pandemic. Notably, Tamil Nadu was one of the few states to record positive growth during the pandemic, unlike many others that faced negative growth.
Nominal Growth Rate: The state also led with a nominal growth rate of 14.02%, reflecting the total market value of goods and services without adjusting for inflation.
Growth Projections vs. Reality:
Economic Survey Projection: Over 8% growth was projected for the state.
Madras School of Economics (MSE) Estimate: Projected growth of 9.3%.
Actual Growth: The real growth exceeded expectations, showcasing Tamil Nadu’s robust economic health.
Sectoral Contributions to Growth:
Tertiary Sector (Services):
Professional Services: 13.6% growth.
Communications: 13% growth.
Trade, Repair, Hotels, and Restaurants: Contributed 11.7% to the economy.
Secondary Sector (Manufacturing & Construction):
Manufacturing: 8% growth.
Construction: 10.6% growth.
If all sectors grow 0.5 percentage points higher in 2025-26, Tamil Nadu’s growth could reach around 10.7%, according to Dr. Shanmugam, former director of MSE.
However, the MoSPI data doesn’t show the growth for 14 other states and Union Territories, including Gujarat, Bihar, and Uttar Pradesh, was not available on the MoSPI website at the time of reporting.