Tamil Nadu Sets a New High with 9.69% Growth

The state grew at a rate of 9.69%, which is the best in the country and also the highest for Tamil Nadu in the past 10 years. This growth shows that Tamil Nadu’s economy is getting stronger year by year.

Real growth means the growth of the economy without including inflation. This gives a clear picture of how much actual progress has been made. On the other hand, nominal growth includes inflation. In 2024-25, Tamil Nadu’s nominal growth rate was 14.02%, which is also the highest among all Indian States.

Tamil Nadu stayed strong even during though times like the pandemic. The Madras School of Economics (MSE) had predicted 9.3% growth in a study by economists Dr. C. Rangarajan and Dr. K.R. Shanmugam. The Tamil Nadu Economic Survey had expected over 8% growth. But the actual number – 9.69% – was even better.

Growth by Sectors: Tertiary (Services) Sector: This sector grew the most, by 12.7%. It includes: Real estate and professional services: 13.6% growth; Communication and broadcasting: 13% growth and Trade, hotels and restaurants: 11.7% growthThis sector now contributes around 53% to the state’s economy.Secondary Sector: This sector grew by 9%. It includes: Construction: 10.6% growth and Manufacturing: 8% growth.This sector contributes 37% to the economy. Primary Sector: This sector did not do well. It grew only by 0.15% and contributes 10% to the economy. Crop production: -5.93% (negative growth) and Livestock: 3.84% gro

Dr. Shanmugam said Tamil Nadu has been growing at over 8% since 2021-22. If it is keeps growing at 9.7% and increases exports, the State could become a $1 trillion economy by 2032-33. He also said that if each sector grows just 0.5% more than in 2024-25, the total growth could be 10.7% in 2025-26. The budget also expects 14.5% nominal growth in 2025-26