In a significant economic announcement, Tamil Nadu's Finance Minister Thangam Thennarasu revealed that the state's economy has achieved a remarkable growth rate of 16% for the fiscal year 2024-25. The minister attributed this robust performance primarily to the manufacturing sector, which has emerged as the state's key growth engine.
Manufacturing: The Powerhouse of Tamil Nadu's Economy
Speaking to reporters at the Secretariat in Chennai on Wednesday, Thennarasu cited data from the Reserve Bank of India's Handbook of Statistics on Indian States 2024-25. He stated that the manufacturing sector's surge has propelled the state's Gross State Domestic Product (GSDP) to an impressive Rs 31.19 lakh crore. The state's economy itself witnessed a sharp rise to Rs 26.88 lakh crore in 2023-24.
The minister highlighted that Tamil Nadu's growth has outperformed other industrialized regions, including Maharashtra. "Tamil Nadu currently has over 40,000 factories providing employment to about 27.7 lakh people," Thennarasu said, underscoring the sector's massive scale and employment generation capacity.
A Consistent Trajectory of High Growth
This high growth rate is not an isolated event but part of a sustained upward trend. The Finance Minister explained that the present government has overseen strong economic momentum over the past three years. Tamil Nadu recorded growth of 15.9% in 2021-22, 14.4% in 2022-23, and 13.3% in 2023-24, before touching 16% in 2024-25.
While manufacturing led the charge, other sectors also made substantial contributions. The construction sector expanded by 15.9% in 2023-24 and 11% in 2024-25. The services sector, accounting for a dominant 53% of the state's growth, recorded a real growth of 11% in 2024-25.
Exports Surge and Fiscal Prudence
A major highlight was the explosive growth in exports, particularly in electronics, which is crucial for the state's ambitious target of becoming a trillion-dollar economy by 2030. "Export of electronics jumped from $1.86 billion in 2021-22 to $14.65 billion in 2024-25, which is nearly a seven-fold rise," Thangam Thennarasu announced.
The government emphasized that this rapid growth has been pursued alongside welfare schemes and strict fiscal discipline. Key fiscal indicators have shown improvement: the fiscal deficit is being kept within 3% for 2025-26, and the debt-to-GSDP ratio has declined to about 26% in 2024-25 from 27% in 2021-22.
The data paints a picture of a state economy firing on all cylinders, with a diversified base and a clear manufacturing-led strategy delivering exceptional results and setting a benchmark for other Indian states.
