Thu Mar 13 18:08:04 UTC 2025: ## Tamil Nadu’s Services Sector Booms, Underscoring Need for Infrastructure Investment
**Chennai, March 14, 2025** – Tamil Nadu’s services sector experienced robust growth, expanding by 7.97% annually between 2020-21 and 2023-24, according to the state’s first Economic Survey. This growth was driven by strong performance across sub-sectors, with real estate leading at 9.41%, followed by trade, repair, hotels, and restaurants (7.98%), and transport and storage (7.67%).
The survey highlights the need for significant infrastructure upgrades to support this growth, particularly in the aviation sector to accommodate increased air traffic. It emphasizes the untapped potential of tourism, advocating for substantial investment to capitalize on the sector’s high multiplier effect. The report criticizes past underinvestment in the sector and calls for increased government spending on digital connectivity, power, and transport. The power sector, in particular, requires considerable capacity expansion within the next decade to meet growing demand fueled by urbanization, industrialization, and rising incomes.
The Economic Survey also underscores the importance of the IT and IT-enabled services sector to Tamil Nadu’s economy. The state ranked fourth nationally in software exports, generating ₹73,969 crore in 2022-23, a significant increase from ₹46,704 crore in 2019-20. The survey recommends actively implementing the Tamil Nadu Tourism Policy 2023 to improve infrastructure and visitor experiences to further boost revenue generation.
First Piper 