With 9.69% growth, Tamil Nadu reaches a new economic peak

Tamil Nadu : In the year 2024-25, Tamil Nadu has recorded the highest real economic growth rate in India with a 9.69% real growth rate. This is also the highest growth rate Tamil Nadu has achieved in the last 10 years.

According to data released by the Union Ministry of Statistics and Programme Implementation, Tamil Nadu’s Gross State Domestic Product (GSDP), based on constant prices (base year: 2011-12), has risen from ₹15,71,368 crore in 2023-24 to ₹17,23,698 crore in 2024-25.

Previously, the highest growth was recorded in 2017-18 at 8.59%. During the COVID-19 pandemic in 2020-21, the growth rate had fallen to just 0.07%. While many states registered negative growth that year, Tamil Nadu maintained positive growth.

What is Real Growth Rate?
The growth rate adjusted for inflation is called the real growth rate.
The growth rate without adjusting for inflation is called the nominal growth rate.

In 2024-25, Tamil Nadu has registered a 14.02% nominal growth rate, placing it first among Indian states.

The Union Ministry of Statistics and Programme Implementation has not yet released growth rate data for 14 other states and union territories, including Gujarat, Bihar, and Uttar Pradesh.

The Tamil Nadu government, in its Economic Review published in Q2 of 2025, had forecast a growth of around 8%, and the final real growth rate published by the Union Ministry closely aligns with this estimate.
This is noteworthy.

Senior economists from the Madras School of Economics, Dr. C. Rangarajan and Dr. L.R. Sanmugam, in their June 2024 research paper, had projected 9.3% growth for Tamil Nadu.
Eventually, Tamil Nadu exceeded both projections, affirming its position as a high-growth state.

Growth Drivers:
The tertiary sector (services) recorded 12.7% growth, and the secondary sector (industry) posted 9% growth—both key contributors to the state’s high overall growth. The primary sector (agriculture) saw minimal growth at just 0.15%.

In Tamil Nadu’s total output:

• Tertiary sector accounts for 53%
• Secondary sector for 37%
• Primary sector for 10%

In the tertiary sector:

• Financial services grew by 13.6%
• Information & communication by 13%
• Trade, hotels, and restaurants by 11.7%

In the secondary sector:

• Manufacturing grew by 8%
• Construction by 10.6%

The primary sector’s major contributors—fisheries and livestock—did not show strong growth:

• Fisheries posted -5.93%
• Livestock showed 3.84%

Former Director of Madras School of Economics, Dr. L.R. Sanmugam, notes that since 2021-22, Tamil Nadu has consistently achieved 8% or higher growth. If the 9.7% growth is sustained in future years, Tamil Nadu can reach a $1 trillion economy by 2032-33.

Source: Director, Department of Information and Public Relations, Chennai-9