CHENNAI: With 6.3% GDP growth rate compared to 5% in rest of India, South India leads in economic progress and far outperforms other regions of India, Dr V Anantha Nageswaran, chief economic advisor (CEA)to the union government, said on Monday.
Tamil Nadu contributes 20.4% to South India’s manufacturing GDP, with automotive, textiles and electronics manufacturing being the thrust areas of the state.
Speaking at the Mystic South Global Linkages Summit 2025, organised by the Confederation of Indian Industry (CII) Southern Region on Monday, Nageswaran said the per capita income of the southern region has also grown at 5% compared to the 4.2% annual growth for the rest of India, and added that the labour force participation is higher down south than the national average.
Andhra Pradesh and Telangana also boast over 50% participation of women in the workforce, the only two Indian states to have achieved this.
“With long term strategic competitiveness in mind, greater industry-academia collaboration is vital. I urge industries to look at R&D as an investment, rather than as expenditure,” Nageswaran said.
At the event, a report titled ‘2047 Southern Odyssey: Powering Ahead to a $10-Trillion Economy’ was released.
‘31% of India’s GDP in 2023-24 came from south states’
It highlighted a significant step in charting South India’s economic aspirations. According to the report, South India contributed 31% to India’s GDP in 2023-24, with Tamil Nadu and Karnataka taking the top two spots, followed by Telangana and Andhra Pradesh.
R Mukundan, vice president, CII, and managing director and chief executive officer of Tata Chemicals, said that public-private partnerships are reshaping development, ensuring efficiency and investment in infrastructure, manufacturing and renewable energy.
“As India targets a $30-trillion economy and Tamil Nadu aims for a $40,000 per capita income, smart industrial zones, export logistics and social infrastructure will be vital for sustainable growth,” he said.