PUDUCHERRY: Puducherry’s economy has surged, with the Gross State Domestic Product (GSDP) rate rising by 8.12 per cent in 2025–26 from a contraction of 2.21 per cent in 2020–21, Lieutenant Governor (LG) K. Kailashnathan said at the 16th Puducherry Legislative Assembly on Monday.
By reversing the COVID-19 period contraction, Puducherry is positioning itself for a broad-based transition toward a self-reliant economy targeted for 2047, the LG said.
The union territory's growth rate is higher than the national growth rate, while the per-capita income has increased by around 6.5 per cent, to Rs 344,926 in 2026–27 in 2025–26, he said.
The total revenue increased by 6.5 per cent to Rs 13,397 crore in 2025–26, while the UT's revenue increased by 11.4 per cent to Rs 7,631 crore.
The government has orchestrated a structural shift toward asset creation, driving capital expenditure by 71 per cent to Rs 765.6 crore.
The LG said the union territory was entering a new phase of development, combining economic growth with infrastructure creation, employment generation, digital governance, social security and climate resilience.
Highlighting the infrastructure push, Kailashnathan said the aviation strategy is a proposed Rs 4,800-crore runway expansion for Puducherry Airport, extending the current length from 1,500 metres to 2,300 metres to accommodate larger A320 and A321-class aircraft along with a new passenger terminal.
Industrial growth is slated to accelerate via a Rs 2,500-crore and 213-acre multi-product SEZ at Karasur, expected to generate 40,000 jobs. A Rs 725-crore IT SEZ at Thattanchavady is projected to create 30,000 direct and indirect jobs over ten years.
Urban logistics and public infrastructure are simultaneously being modernised through Smart City initiatives, including a Rs 99.6-crore Integrated Command and Control Centre (ICCC), modern drainage systems, and the operationalisation of electric buses.
The LG said environmental sustainability, coastal defence, and water security form a core pillar of the long-term vision.
Through global partnerships, Puducherry is executing the World Bank-assisted Rs 1,433-crore PY-SHORE project for coastal restoration and climate-resilient fisheries. Also, the Asian Development Bank supported Rs 4,750-crore PIULIP scheme to secure 24-hour water supply, drainage, and coastal infrastructure across Puducherry, Karaikal, Mahe, and Yanam.
Modernisation of municipal water systems is also underway via a Rs 534-crore French Development Agency program, the LG said.
The government is also pursuing major road and transport projects, including an elevated corridor between Indira Gandhi Square and Rajiv Gandhi Square, an improvement of the East Coast Road and widening of NH-32.