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Highlights of Tamil Nadu economy
February 6 , 2026
13 hrs 0 min
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- The Economic Survey of India (2025-26) reinforces Tamil Nadu’s position as an investment-ready, industry-first State.
- Tamil Nadu stands out as the fastest-growing State economy, registering 11.19% real growth in 2024–25.
- As India’s second-largest State economy, Tamil Nadu is also a major contributor to national growth.
- This performance is driven primarily by the secondary sector, which grew by 13.43%.
- Within this, manufacturing has emerged as a key growth engine, recording 14.74% real growth — more than three times the all-India average of 4.5%.
- Tamil Nadu also leads every State in four-year average real manufacturing growth (2021-22 to 2024-25) at 9.38%, while its overall GSDP grew by 8.63%.
- Headline CPI inflation declined to 2.45% in 2025-26 (till December).
- The State’s merchandise exports have nearly doubled from $26.15 billion in 2020-21 to $52.07 billion in 2024-25.
- Tamil Nadu is among the few States where 85% of the cement industry is concentrated.
- It is also one of three States to receive final approval for financial assistance of ₹100 crore to establish a Medical Devices Park under the Scheme for Promotion of Medical Devices Parks.
- According to the Survey, Tamil Nadu contributes 15% of India’s manufacturing employment.
- It is the highest among all States.
- Tamilnadu is surpassing Gujarat (13%), Maharashtra (13%), and Uttar Pradesh (8%).
- Under the Business Reforms Action Plan (BRAP) 2024, Tamil Nadu has enhanced ease of doing business through single-window clearances, digitised approvals and land reforms, while promoting solar parks, district-level decarbonisation plans and energy-efficiency programmes.
- Tamil Nadu has secured a pivotal role in India’s green hydrogen economy with the designation of the V.O. Chidambaranar Port as one of only three green hydrogen hubs under the National Green Hydrogen Mission.
- This positions the State at the forefront of India’s target to produce five million metric tonnes of green hydrogen annually by 2030.
- The Chennai-Vellore-Villupuram-Chengalpattu corridor has also been identified as a potential Regional Rapid Transit System route.
- The Survey takes note of the Tamil Nadu Sustainably Harnessing Ocean Resources and Blue Economy Project addressing climate vulnerabilities along the State’s 1,076-kilometre coastline across 14 coastal districts.
- It further notes that Karnataka, Maharashtra, Tamil Nadu and Telangana together account for nearly 40% of India’s services output.
- Tamil Nadu is also identified among high-performing States in groundnut productivity, alongside Gujarat and Karnataka, due to improved varieties, multiple crop cycles and sustained policy focus on oilseeds.
- Its achievements in banana cultivation are similarly recognised as region-specific success stories in horticulture.
- On urban development, the Survey highlights Chennai to be one of the world’s largest urban agglomerations.
- Chennai’s Metropolitan Area Parking Policy 2025 is cited as a national best practice.
- And Tamil Nadu ranks first in Civic Behaviour in the India Today Gross Domestic Behaviour Survey.
- In higher education, 17 institutions from Tamil Nadu feature in the NIRF 2025 Top 100 Overall Rankings — the highest among all States.
- The Skill Voucher Scheme launched in 2024 by the Adi Dravidar and Tribal Welfare Department is also acknowledged for supporting students from disadvantaged communities.
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