Tamil Nadu Sets a New High with 9.69% Growth

Tamil Nadu has achieved the highest real economic growth rate in India for the year 2024-25. The state grew at a rate of 9.69%, which is the best in the country and also the highest for Tamil Nadu in the past 10 years. This growth shows that Tamil Nadu’s economy is getting stronger year by year.

What is Real Economic Growth?

Real growth means the growth of the economy without including inflation. This gives a clear picture of how much actual progress has been made. On the other hand, nominal growth includes inflation. In 2024-25, Tamil Nadu’s nominal growth rate was 14.02%, which is also the highest among all Indian States.

Tamil Nadu’s GDP Numbers

At constant prices (2011-12 base years):

• In 2023-24, the GSDP was Rs.15,71,368 crore.
• In 2024-25, it rose to Rs.17,23,698 crore.

This increase shows that the State’s economy is growing fast.

Comparison with Past Years

• 2017-18: Growth was 8.59%
• 2020-21 (COVID-19 period): Growth was very low at 0.07%, but still positive.
• 2024-25: Growth reached 9.69%, the best in 10 years.

Tamil Nadu stayed strong even during though times like the pandemic.

Support from Experts

The Madras School of Economics (MSE) had predicted 9.3% growth in a study by economists Dr. C. Rangarajan and Dr. K.R. Shanmugam. The Tamil Nadu Economic Survey had expected over 8% growth. But the actual number – 9.69% – was even better.

Growth by Sectors

Tertiary (Services) Sector:

This sector grew the most, by 12.7%. It includes:

• Real estate and professional services: 13.6% growth
• Communication and broadcasting: 13% growth
• Trade, hotels and restaurants: 11.7% growth

This sector now contributes around 53% to the state’s economy.

Secondary Sector

This sector grew by 9%. It includes:

• Construction: 10.6% growth
• Manufacturing: 8% growth

This sector contributes 37% to the economy.

Primary Sector

This sector did not do well. It grew only by 0.15% and contributes 10% to the economy.

• Crop production: -5.93% (negative growth)
• Livestock: 3.84% growth

Future Possibilities

Dr. Shanmugam said Tamil Nadu has been growing at over 8% since 2021-22. If it is keeps growing at 9.7% and increases exports, the State could become a $1 trillion economy by 2032-33. He also said that if each sector grows just 0.5% more than in 2024-25, the total growth could be 10.7% in 2025-26. The budget also expects 14.5% nominal growth in 2025-26.

Summary of the News

Events	Details
Real Economic Growth Rate	Tamil Nadu recorded 9.69% growth in 2024-25, highest in India and in 10 years.
Nominal Growth Rate	The state achieved 14.02% nominal growth, also the highest among all states.
Gross State Domestic Product	GSDP increased from Rs.15.71 lakh crore (2023-24) to Rs.17.23 lakh crore (2024-25).
Top Performing Sector	Tertiary (services) sector grew 12.7% – led by real estate, communication and trade.
Secondary Sector Growth	Grew by 9% with construction at 10.6% and manufacturing at 8%.
Primary Sector Performance	Very low growth of 0.15%. Crop production declined by -5.93%
Growth Prediction	Experts from MSE predicted 9.3% actual growth was even higher.
Future Outlook	Tamil Nadu could become a $1 trillion economy by 2032-33, if high growth continues.