Fri Apr 04 19:05:20 UTC 2025: ## Tamil Nadu Records Highest State Economic Growth in India

**Chennai, April 5, 2025** – Tamil Nadu has achieved a remarkable real economic growth rate of 9.69% for the fiscal year 2024-25, surpassing all other states in India and marking its highest growth in a decade. This is according to the latest data from the Union Ministry of Statistics and Programme Implementation.

The state’s Gross State Domestic Product (GSDP) increased from ₹15,71,368 crore in 2023-24 to ₹17,23,698 crore in 2024-25 (at constant 2011-12 prices). This significantly exceeds the previous high of 8.59% recorded in 2017-18. The nominal growth rate, which includes inflation, reached 14.02%, also the highest among all states.

The strong performance is attributed to robust growth in the tertiary (services) sector (12.7%) and the secondary (industrial) sector (9%). Key contributors within the services sector include real estate (13.6%), communication (13%), and trade, hotels, and restaurants (11.7%). Manufacturing and construction within the industrial sector grew at 8% and 10.6%, respectively. In contrast, the primary (agricultural) sector showed weak performance, with a growth rate of only 0.15%.

Dr. K.R. Shanmugam, former Director of the Madras School of Economics, noted that Tamil Nadu has consistently achieved 8% or more growth since 2021-22. He projects that maintaining a similar growth rate, coupled with strong exports, could propel the state to a trillion-dollar economy by 2032-33. He further anticipates a 10.7% growth rate for 2025-26 if all sectors exceed their 2024-25 performance by just 0.5 percentage points. The state budget also projects a 14.5% nominal growth for 2025-26. Data for 14 other states and union territories is yet to be released by the Union Ministry.

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