AFTER 14 YEARS, TAMIL NADU RECORDS DOUBLE-DIGIT GROWTH IN REAL TERMS
Impressive Economic Performance in 2024-25
Tamil Nadu posted an impressive real GDP growth rate of 11.9% in the financial year 2024-25, the highest achieved by the state since 2010-11, when it recorded 13.12% growth. This landmark performance comes after more than a decade of relatively lower growth rates, signaling a robust economic revival and resilience in the state’s economy.
Key Drivers of Growth
The surge in Tamil Nadu’s economic growth is attributed mainly to the strong performances of the services and manufacturing sectors:
Services Sector:
Professional services grew by around 13.6%.
Communications sector expanded by 13%.
Trade, repair, hotels, and restaurants collectively contributed 11.7% growth.
Manufacturing and Construction Sectors:
Manufacturing witnessed an 8% increase.
Construction activities surged by 10.6%, supporting infrastructure development.
This diversified economic base reflects Tamil Nadu’s well-rounded industrial and service ecosystem, including IT, electronics, automobiles, textiles, and hospitality.
Economic Impact and Future Prospects
Tamil Nadu’s Gross State Domestic Product (GSDP) rose significantly to approximately ₹17.23 lakh crore in 2024-25, up from ₹15.71 lakh crore the previous year.
The state’s nominal GDP growth stood at 14.02%, highlighting gains beyond inflation.
With this momentum, Tamil Nadu is firmly positioned on the path to becoming a trillion-dollar economy by 2031-32, a target supported by strategic industrial policies and infrastructure investments.
The state now ranks third in per capita income among Indian states, reflecting improving standards of living and economic prosperity.
Comparison and Significance
Tamil Nadu’s real GDP growth rate far outpaces the national average growth of around 7%, showcasing its economic resilience and effective governance. The achievement is particularly notable given the adverse effects of the recent pandemic years and global economic challenges. It also reinforces Tamil Nadu’s role as a leading industrial and service hub in India.
FREQUENTLY ASKED QUESTIONS (FAQ)
Q1: What is the real GDP growth rate Tamil Nadu recorded in 2024-25?
Tamil Nadu recorded a real GDP growth rate of 11.9% for the year 2024-25, the highest in 14 years.
Q2: Which sectors contributed most to this growth?
The services sector (professional services, communications, trade, hotels) and manufacturing and construction sectors were the primary contributors.
Q3: How does this growth compare to previous years?
This is the highest growth since 2010-11, surpassing previous years’ growth, which hovered below double digits.
Q4: What is Tamil Nadu’s GSDP value in 2024-25?
The Gross State Domestic Product was around ₹17.23 lakh crore in 2024-25.
Q5: What are the future economic prospects for Tamil Nadu?
The state aims to reach a trillion-dollar economy by 2031-32, supported by strong industrial policies, infrastructure, and diversification.
Q6: How does Tamil Nadu’s growth rate compare nationally?
Tamil Nadu’s 11.9% real growth is significantly higher than the national average of around 7% for the same period.
Q7: What impact does this growth have on Tamil Nadu’s per capita income ranking?
Tamil Nadu now ranks third among Indian states in per capita income, indicating rising prosperity.
Q8: What factors have enabled Tamil Nadu’s strong economic performance?
A mix of diversified industrial base, robust service sectors, strategic governance, and infrastructure development has driven the growth.
Published on: August 6, 2025
Published by: PAVAN
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed