Economy of Tamil Nadu

Economy of Tamil Nadu
Chennai, the capital of Tamil Nadu
CurrencyIndian rupee (INR, ₹)
1 April – 31 March
Country group
Statistics
PopulationIncrease77,100,000[3]
GDPIncrease 35.678 trillion (US$420 billion)[4] (nominal; 2025 est.) Increase $1.76 trillion[4] (PPP; 2025 est.)
GDP rank2nd
GDP growth
16% (2025-26)[5]
GDP per capita
Increase $5,443[4] (nominal; 2025 est.) Increase $22,944[4](PPP; 2025 est.)
GDP per capita rank
9th
GDP by sector
Services: 54% (2020–21)
Industry: 33%
Agriculture: 13%[6]
Population below poverty line
1.69% (2024)
Increase 0.741 high (2023) (14th)
UnemploymentPositive decrease 4.1% (Dec 2022)[7]
External
Exports5.83 lakh crore (US$69 billion) (2024–25)[8]
Export goods
Automobiles,[9] mobile phones,[10] software, missile defense, electronics, telecommunications equipment,[11] armaments,[12] locomotives,[13] ships, machinery, steel, aluminium, transportation equipment,[14] tyres, textiles, footwear, leather, chemicals, cement, plastics, toys, food processing, seafood, vegetables, fruits, tea and coffee
Main export partners
 Australia[15]
FDI stock
28,049 crore (US$3.3 billion) (2017–18)[16]
Public finances
26.29% of GSDP (2022–23 est.)[6]
−90,114 crore (US$−11 billion) (3.63% of GSDP) (2022–23 est.)[6]
Revenues2.36 lakh crore (US$28 billion) (2022–23 est.)[6]
Expenses3.33 lakh crore (US$39 billion) (2022–23 est.)[6]
All values, unless otherwise stated, are in US dollars.

Tamil Nadu has the second-largest economy of any state in India.[17] The state is also the most industrialised in the country.[18][19] The state is 48.40% urbanised, accounting for around 9.26% of the urban population in the country, while the state as a whole accounted for 5.96% of India's total population in the 2011 census.[20] Services contribute to 54% of the gross domestic product of the state, followed by manufacturing at 33% and agriculture at 13%.[21]

Government is the major investor in the state, with 52% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. It has been ranked as the most economically free state in India by the Economic Freedom Rankings for the States of India.[22]

  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". World Bank. Retrieved 29 September 2019.
  3. ^ "Population Projections for India and States 2011–2036". National Commission on Population, Ministry of Health and Family Welfare. July 2020. Retrieved 23 May 2025.
  4. ^ a b c d "Tamil Nadu Budget Analysis 2025-26". PRS Legislative Research. Retrieved 20 May 2025.
  5. ^ "Tamil Nadu Budget Analysis 2024-25" via prsindia.org
  6. ^ a b c d e "Tamil Nadu Budget Analysis 2022–23". PRS Legislative Research. Retrieved 3 April 2022.
  7. ^ "Unemployment Rate in India". Centre for Monitoring Indian Economy. p. 1. Retrieved 3 November 2020.
  8. ^ Presentation on Tamil Nadu cgijaffna.gov.in
  9. ^ Simhan, TE Raja (28 June 2018). "Chennai Port takes lead in wooing Kia Motors". @businessline.
  10. ^ "India may become the second largest smartphone market: Xiaomi's Raghu Reddy". The Economic Times.
  11. ^ "Nokia Siemens to expand Chennai facility". The Hindu. 9 August 2011 – via www.thehindu.com.
  12. ^ "Ashok Leyland looking at Rs 5,100 crore revenue from defence exports". Archived from the original on 19 July 2018. Retrieved 1 January 2024.
  13. ^ "Indian Railways to export six DMU train sets to Sri Lanka". www.cnbctv18.com. 11 July 2018.
  14. ^ Market, Capital (10 July 2018). "Steel Strips Wheels bags its largest export order for US truck & trailer aftermarket". Business Standard India – via Business Standard.
  15. ^ Suneja, Kirtika. "Australian exports to India to grow to $45 bn in 20 years, FDI to $100 bn, says report". The Economic Times.
  16. ^ "Whopping 300% FDI inflow growth in this non-BJP state; here's list of other top performing states". 12 July 2018.
  17. ^ "Reserve Bank of India - Publications". rbi.org.in. Retrieved 12 August 2023.
  18. ^ "Tamil Nadu has most factories in India says RBI report, as state plots path to a trillion-dollar economy". CNBCTV18. 24 November 2022. Retrieved 3 February 2024.
  19. ^ "ASI - State Wise number of factories for 2019-20 | Ministry of Statistics and Program Implementation | Government Of India". www.mospi.gov.in. Retrieved 4 February 2024.
  20. ^ "Visualizations | Government of India". censusindia.gov.in. Retrieved 23 March 2023.
  21. ^ "Tamil Nadu Budget Analysis 2023-24". PRS Legislative Research.
  22. ^ "Indian States by Economic Freedom - StatisticsTimes.com". statisticstimes.com. Retrieved 25 October 2018.

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