Economy Tamil Nadu Economic Performance Context: Tamil Nadu, which is the second-largest State economy, has sustained a high-growth trajectory, recording a real Gross State Domestic Product (GSDP) growth of 10.83% in 2025-26, following 11.19% in 2024-25. This places the State well above the national average of 7.4% and marks two consecutive years of double-digit growth. Sector-wise Growth Secondary Sector: Main driver, grew 15.02% (vs 6.6% national) Manufacturing: 14.22% growth Construction: 15.02% growth Services Sector: 8.54% growth; contributes 53.54% of GVA Primary Sector: Primary sector recorded 5.92% growth in 2025–26, higher than the national average (2.7%) Industrial Strength Contributes 13.35% to India’s manufacturing GDP Over 40,000 factories employing ~25 lakh workers Ranks 1st in factory employment Per Capita Income Increased from ₹2.096 lakh (2020–21) to ₹4.08 lakh (2025–26) Second highest in India (after Karnataka) Above national average (₹2.196 lakh) Investment & FDI FDI inflows rose from $2,169 million (2022–23) to $3,681 million (2024–25) Strong private investments in manufacturing, automobiles, electronics, renewable energy Infrastructure & Human Capital Strong power supply, roads, ports, industrial corridors High skilled workforce and technical education base Export Performance Ranked 2nd in Export Preparedness Index (Score: 64.41) Major contributor to India’s exports Inflation Control Retail inflation declined from 5.2% to 2.62% (Dec 2025) Balanced supply and demand conditions
