Tamil Nadu Emerges as India’s Second Most Prosperous State under Dravidian Model Governance

Tamil Nadu has ranked second in India in terms of Per Capita Income, reaffirming the economic strength of the state under the visionary leadership of Chief Minister M.K. Stalin and the progressive governance of the Dravidian Model Government. This milestone reflects the inclusive and welfare-driven approach that has become a hallmark of Tamil Nadu’s governance since 2021.

According to the latest data from the Union Ministry of Statistics and Programme Implementation, Tamil Nadu recorded a Gross State Domestic Product (GSDP) growth rate of 9.69% for the financial year 2024–2025 — the highest economic growth rate among major Indian states. This is Tamil Nadu’s best performance in a decade, making it the fastest-growing state in India for the year.

Union Minister of State for Finance Pankaj Chaudhary, while addressing Parliament on July 21, 2025, further announced that Tamil Nadu’s Per Capita Income stands at ₹1,96,309, placing it second among all Indian states — significantly higher than the national average of ₹1,14,710.

This economic surge is largely attributed to the innovative and people-centric schemes launched by Chief Minister M.K. Stalin since 2021, which include:

• Free Women’s Bus Travel Scheme benefiting over 700 crore passengers
• Pudhumai Pen Scheme granting ₹1,000/month to 4.95 lakh girl college students
• Thamizh Pudhalvan Scheme offering ₹1,000/month to 3.28 lakh male students
• Kalaignar Magalir Urimai Thittam, providing ₹1,000/month to 1.15 crore women heads of households
• Makkalai Thedi Maruthuvam, a doorstep medical care scheme lauded by the UN, offering free home healthcare to 4 crore people
• Illam Thedi Kalvi, an at-home learning initiative benefitting 95.97 lakh children with a budget of ₹660 crore
• Kalaignar Kaval Illam Scheme: ₹3.5 lakh subsidy for 2 lakh beneficiaries to build homes
• Innu Uyir Kaapom – Nammai Kaakkum 48, a life-saving initiative saving over 10.96 lakh lives with ₹648.12 crore investment
• Naan Mudhalvan Scheme: Empowering 41 lakh youth and placing 3.28 lakh students in frontline jobs
• Investment surge of ₹10.14 lakh crore through 895 MoUs, generating over 32 lakh new job opportunities

Each of these schemes has laid the foundation for Tamil Nadu’s robust economic trajectory and has directly improved the quality of life for millions.

Despite challenges — including limited financial assistance and delayed fund allocations from the Union Government — Tamil Nadu has demonstrated remarkable resilience. The sustained progress in economic growth and welfare metrics is a testament to the determined leadership of Chief Minister Stalin and his commitment to efficient policy implementation.

This latest recognition at the national level not only highlights the economic prosperity of Tamil Nadu but also validates the success of the Dravidian Model — a model focused on equality, social justice, and inclusive development.

Issued by:
Directorate of Information and Public Relations, Chennai-9