TN likely to maintain growth rate of above 8 pc in 2024-25: Economic Survey

Chennai : Tamil Nadu's first Economic Survey 2024-25 has indicated that the state is expected to maintain a growth rate of above 8 per cent in the year.

The Survey, which was prepared by the State Planning Commission with the Finance Department and several other departments, was handed over to Chief Minister M.K. Stalin on Thursday.

"The global economy posted a real growth rate of 3.33 per cent in 2023. India’s economy recorded 7.61 per cent growth in 2022-23, 9.19 per cent in 2023-24, and 6.48 per cent in 2024-25," it said.

The survey report further said that Tamil Nadu has demonstrated remarkable economic resilience, consistently achieving growth rates of 8 per cent or more since 2021-22.

It pointed out that Tamil Nadu’s per capita income growth has consistently outpaced the national average over the years. In 2022-23, it was Rs 2.78 lakh - 1.64 times the national average of Rs 1.69 lakh. This makes Tamil Nadu the fourth-largest state in per capita income. The state’s per capita income is significantly above the national average.

The survey provides a detailed analysis of key sectors such as agriculture, industry, and services, examines trends in inflation, employment, and select social sector indicators, along with the medium-term growth outlook. It also outlines government policies, assesses their effectiveness, and presents growth prospects for 2024-25 and 2025-26, suggesting remedial measures to address short-term challenges and support sustained economic growth.

State Planning Commission's Executive Vice Chairman J. Jeyaranjan, in his foreword, mentioned that ever since the new government took over the reins of governance in May 2021, it has taken the state through successive years of high economic growth, overcoming the onslaught of the pandemic in 2020 and 2021 and the natural disasters of cyclone and flooding in the three years thereafter.

He also noted that "the Union government has not been cooperative in sharing financial resources that Tamil Nadu deserves, and limiting its growth through policy compulsions like NEET, NEP 2020, and fiscal caps on borrowings to name a few".

The survey highlighted that Tamil Nadu’s progressive social policies, robust infrastructure facilities, and large skilled labour force have enabled the state to place itself on an elevated economic development trajectory.

With just 4 per cent of India’s land area and 6 per cent of the country’s population, Tamil Nadu contributed 9.21 per cent to the national GDP in 2023-24. Its Gross State Domestic Product (GSDP), at current prices, reached Rs 27.22 lakh crore in 2023-24, posting a nominal growth rate of 13.71 per cent and a real growth rate of 8.33 per cent.

The Economic Survey pointed out that Tamil Nadu’s economic development is more evenly distributed across multiple urban centres. Cities like Coimbatore, Madurai, Tirupur, Tiruchirappalli, and Salem contribute significantly to the state's economy, helping bridge the urban-rural divide. For instance, the northern zone, with 31.8 per cent of the state’s population, contributes the highest share of GSDP at 36.6 per cent. The western zone, accounting for 22.8 per cent of the population, generates 29.6 per cent of the GSDP. In contrast, the southern zone holds a 20.5 per cent population share but contributes 18.8 per cent to the GSDP, while the eastern zone, with 25.5 per cent of the population, has the lowest GSDP share at 15.1 per cent.

After the DMK government came to power, Chief Minister Stalin had said that Tamil Nadu would become a $1 trillion economy by 2030. To achieve this milestone, Tamil Nadu will need to sustain an annual growth rate of over 12 per cent, driven by industrial expansion, infrastructure development, and digital transformation, the survey mentioned.