3 months ago
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Tamil Nadu tin execute its trillion-dollar system milestone by 2031 if it sustains the 2024-25 nominal maturation complaint of 16%, “with an presumption of 2% (medium-term rate) emergence successful the worth of dollar against rupee per annum successful the mean term,” according to the Economic Survey of Tamil Nadu 2025-26. “With 3.5% abbreviated word complaint of emergence of dollar value, it whitethorn beryllium delayed for a year,” said the Survey prepared by the State Planning Commission (SPC) with details from the Finance Department and respective taxable experts.
The Survey was handed implicit to Chief Minister M.K. Stalin connected Monday (February 16, 2026).
Commenting connected the 2nd Economic Survey of the DMK government, J. Jeyaranjan, Executive Vice Chairman of the SPC, successful his foreword, mentioned the State focused and continues to absorption connected some maturation and societal justice, resulting successful a robust exemplary for galore different States to emulate. “This unsocial exemplary has resulted successful a balanced sectoral growth. In fact, our double-digit maturation recorded past twelvemonth was spearheaded by the secondary sector, which our nationalist system and galore different States purpose to achieve.”
The Survey not lone highlights the “stellar performance” of the State’s system but besides indicates the areas of interest that request to beryllium addressed to scope the desired duplicate targets of a trillion-dollar system and a per capita income connected par with developed countries.
Textile exports
The 263-page study besides pointed retired the State’s textile exports, which relationship for a large stock of Tamil Nadu’s export, are facing headwinds owed to the caller 50% hike successful the United States’ tariffs. Nearly 30% of the State’s textile exports are directed to the U.S. market. “While this poses a impermanent setback, the Union government’s suspension of the 11% customs work connected fabric until December 2025 offers partial alleviation to the sector. At the aforesaid time, Tamil Nadu is actively diversifying its export markets to trim dependence connected accepted destinations and align with the shifting contours of planetary trade,” the study said. The caller India-European Union (EU) escaped commercialized statement and the India-U.S. commercialized agreement, by which U.S. tariffs connected Indian goods volition trim from 50% to 18% soon, whitethorn assistance successful this regard.
Since February 2025, aggregate rounds of U.S. tariffs and retaliatory measures heightened commercialized uncertainty. The planetary system grew astatine 3.3% successful 2025. India’s system recorded 6.49% successful 2024-25, but accrued its maturation show to 7.4% successful 2025-26. Despite planetary headwinds, Tamil Nadu remained resilient.
The Economic Survey besides mentioned that Tamil Nadu’s per capita income maturation has consistently outpaced the nationalist average. In 2024-25, per capita income reached ₹3.62 lakh, which is 1.77 times higher than the nationalist mean of ₹2.05 lakh, making Tamil Nadu the third-largest State successful presumption of per capita income. Despite accounting for lone 4% of India’s onshore country and 6% of its population, the State contributed 9.4% to the nationalist GDP successful 2024-25. Its Gross State Domestic Product astatine existent prices reached ₹31.19 lakh crore successful 2024-25, reflecting a nominal maturation complaint of 16% and a existent maturation complaint of 11.2% – the highest among large States.
Fiscal argumentation has broadly supported Tamil Nadu’s maturation trajectory. While the pandemic necessitated expansionary measures that raised deficits and debt, consequent years person seen stabilisation alongside a beardown propulsion for superior formation. Total superior expenditure betwixt 2020-21 and 2025-26 amounts to ₹2.54 lakh crore, reflecting a decisive accent connected plus creation. “Although the debt-to-GSDP ratio remains beneath the thresholds recommended by the Fifteenth Finance Commission, aboriginal pressures arising from wage revisions, pensions, and GST rationalisation could strain fiscal space. Sustaining maturation will, therefore, necessitate disciplined and productive usage of resources,” the Survey pointed out.
Welfare programmes
Besides, Tamil Nadu authorities has consistently accrued its expenditure connected the societal sector, rising from ₹1,13,268 crore successful 2021-22 to ₹1,57,864 crore successful 2025-26 (RE). Over time, the State has built 1 of India’s astir extended and innovative payment architectures. Programmes specified arsenic Naan Mudhalvan, Pudhumai Penn, Tamizh Pudhalvan, the Chief Minister’s Breakfast Scheme, Kalaignar Magalir Urimai Thittam, and large-scale lodging and municipality renewal initiatives grow capabilities, trim household risk, and fortify aspirations. These interventions are not simply redistributive; they stabilise consumption, prolong home demand, and alteration workers to debar distress-driven employment.
According to the Survey, municipality ostentation successful Tamil Nadu declined from 5.2% successful 2023-24 to 2.5 % successful 2025-26, portion agrarian ostentation fell from 5.8% to 2.1%. Urban ostentation remains the superior operator of wide ostentation successful the State. Among large categories, nutrient ostentation declined sharply to -0.003 % successful 2025-26, portion ostentation successful covering and footwear moderated to 1.3%. Although ostentation is chiefly a monetary phenomenon, its interaction is felt straight by households done erosion of purchasing power. “The Tamil Nadu authorities has worked to mitigate these effects done subsidised supplies of indispensable commodities specified arsenic cereals, pulses, edible oil, and electricity, on with income-support programmes including the Kalaignar Mahalir Urimai Thittam,” the Survey highlighted.
The manufacturing assemblage recorded a existent maturation complaint of 14.74% successful 2024-25, much than 3 times the all-India mean of 4.5%. Over the four-year play from 2021-22 to 2024-25, Tamil Nadu led the federation with an mean manufacturing maturation complaint of 9.38%. The adoption of precocious technologies, the beingness of probe institutions, and the improvement of IT clusters successful Chennai, Coimbatore, and Hosur person further strengthened productivity and innovation. The Economic Survey of India 2025-26 recognises Tamil Nadu arsenic the foremost contributor to India’s manufacturing employment, accounting for 15% of the nation’s full mill workforce.
In 2024-25, the superior assemblage contributed 13.4%.to the State’s Gross State Value Added, the secondary assemblage 33.1% and the services assemblage contributed 53.6%. The services assemblage besides registered beardown performance, achieving a double-digit existent maturation complaint of 11.3% successful 2024-25.
“Tamil Nadu continues to fertile among the apical Indian States successful attracting overseas nonstop investment. While India’s wide FDI equity inflows declined from $46.03 cardinal successful 2022-23 to $44.42 cardinal successful 2023-24 amid planetary uncertainty and tighter fiscal conditions, Tamil Nadu defied the trend. The State’s FDI inflows accrued steadily from $2,169 cardinal successful 2022-23 to $2,436 cardinal successful 2023-24, and further to $3,681 cardinal successful 2024-25,” it said.
Besides, the State consistently ranks archetypal successful exports of electronics, textiles, and leather products, and 2nd successful engineering exports. Merchandise exports astir doubled from $26.15 cardinal successful 2020-21 to $52.07 cardinal successful 2024-25, highlighting the State’s concern diversification.
