CHENNAI: The first-ever economic survey of Tamil Nadu released by Chief Minister M K Stalin for the year 2024-25 said that based on current trends and economic projections, the state seems to be well-positioned for robust growth in the coming years. Tamil Nadu contributes 9.21% of India’s GDP despite having just 6% of the population, the CM said in his ‘X’ post pointing to the survey.
The survey said given the projected capital expenditure (Capex) of Rs 47,681 crore, a significant influx of committed investments, and a supportive policy environment, Tamil Nadu’s economy is likely to outpace national growth.
In 2022-23, Tamil Nadu’s per capita income was Rs 2.78 lakh, 1.6 times the national average of Rs 1.69 lakh. The state consistently outpaced the national average over the years and is the fourth-largest state in per capita income.
The survey also pointed out that in the short term, Tamil Nadu is expected to maintain a real growth rate of approximately 9% with an inflation rate of around 5%, as large-scale infrastructure projects, industrial growth, and foreign investments continue to spur economic activity. India’s national economy recorded 7.61% growth in 2022-23, 9.19% in 2023-24, and 6.48% in 2024-25.
The survey covers the developments in all sectors of Tamil Nadu’s economy over the past five years while listing out the issues to be addressed and development gaps to be bridged in the state to achieve more in the coming years.
“Over the medium term, the growth rate may moderate to around 8% with a 4% inflation rate, reflecting the long-term sustainability of growth driven by industrial, agricultural, and service sector reforms. As the investments mature and economic conditions stabilise, Tamil Nadu’s growth trajectory is expected to stay strong, contributing significantly to the national economy,” the survey said.
Survey lists out steps to reach $1-tn economy
The medium-term outlook (MTO) chapter in the economic survey stated that Tamil Nadu’s long-term success depends on leveraging its demographic dividend, expanding its digital and physical infrastructure, and integrating sustainability into economic planning.
“While challenges such as climate resilience, workforce realignment, and regional income disparities persist, Tamil Nadu’s proactive approach in skilling, industrial diversification, and technological adoption positions it strongly for sustained economic leadership in India,” the MTO added.
The report highlighted Tamil Nadu’s ambitious goal of becoming a trillion-dollar economy by 2030, reflecting its commitment to high growth, innovation-driven industries, and inclusive development. To achieve this, the survey emphasised the need for strategic planning, policy reforms, and infrastructure investments that address climate change, demographic shifts, technological disruptions, and an evolving employment landscape.
Tamil Nadu’s per capita income growth has consistently exceeded the national average, but disparities remain across districts. Chengalpattu and Kancheepuram lead in per capita income, while some southern and eastern districts lag. The MTO stressed the need for balanced regional growth through targeted industrial investments, digital infrastructure expansion, and rural entrepreneurship development.
Achieving the trillion-dollar economy target requires sustained public and private investments, improved ease of doing business, and inclusive growth strategies to ensure all regions benefit. The survey also noted the growing impact of automated devices across sectors, emphasising the need for students to develop adaptability, innovation, and technological proficiency.
In the social sector, the survey underscored the importance of a mission-mode approach to prevent, detect early, and manage lifestyle diseases to reduce financial burdens and avoidable suffering. State Planning Commission executive vice-chairman J Jeyaranjan, in a press conference, outlined key aspects of the survey. When asked about measures to manage the state’s increasing debt, he said, “Who said debt is a burden? Debt is part of the budget process.”
He explained that the budget comprises four components: the state’s own revenue, the union government’s share, revenue from state-owned undertakings, and debt. Tamil Nadu, he noted, borrows responsibly, within limits. “We can borrow up to 28% of our GSDP but maintain it at 26%. As GSDP grows, so does the loan amount. We borrow for infrastructure projects like metro rail,” he added.
Thennarasu to present state budget today
Chennai: Finance Minister Thangam Thennarasu will present the last full budget of the present DMK regime for 2025-26 on Friday. While key announcements are likely, opposition parties AIADMK and BJP are expected to target the government over law and order, and debt.