Tamil Nadu’s First Economic Survey (2024-25)
▪ The survey was prepared by the State Planning Commission (SPC) in coordination with the Finance and several other departments.
▪ The services sector in Tamil Nadu witnessed a real annual growth of 7.97% from 2020-21 to 2023-24, according to Tamil Nadu’s first Economic Survey.
Growth and Economic Resilience
▪ Tamil Nadu is expected to maintain a growth rate of over 8% in 2024-25.
▪ The State has consistently achieved 8%+ growth since 2021-22 despite challenges like COVID-19, cyclones, and floods.
▪ India’s GDP growth (7.61% in 2022-23, 9.19% in 2023-24, 6.48% in 2024-25)
▪ Tamil Nadu’s per capita income was ₹2.78 lakh in 2022-23, 1.64 times the national average (₹1.69 lakh)
▪ This makes Tamil Nadu the fourth-largest State in terms of per capita income.
▪ The State contributed 9.21% to the national GDP in 2023-24 with a GSDP of ₹27.22 lakh crore
(nominal growth of 13.71%, real growth of 8.33%).
Sectoral and Policy Insights
▪ The survey covers agriculture, industry, and services, along with trends in inflation, employment, and social sector indicators.
▪ Tamil Nadu’s economy is evenly distributed across multiple urban centres, unlike Maharashtra or Karnataka or West Bengal, where economic activity is concentrated around a single metropolitan hub.
Future Economic Goals
▪ The $1-trillion economy target by 2030 requires sustained 12% annual growth
▪ To achieve this, the State would need to sustain an annual growth of over 12% through industrial expansion, infrastructure development, and digital transformation.
Agriculture Growth in Tamil Nadu (Economic Survey 2024-25)
▪ According to the Economic Survey of Tamil Nadu 2024-25,Tamil Nadu can achieve accelerated growth in agriculture and allied sectors if the State addresses challenges such as groundwater depletion and climate change.
Agriculture’s Contribution and Workforce
▪ Agriculture Gross State Value Added (GSVA) in 2023-24: ₹1.5 lakh crore
▪ Agriculture contributes 6% to the State’s total GSVA, ranking as the fifth-largest sub-sector (after manufacturing, real estate, construction, and trade & repair services).
▪ Agriculture and related activities Employs 41.1% of the rural workforce.
▪ According to the Agricultural Statistics at a Glance (2024), Tamil Nadu ranked first in the productivity of oilseeds, groundnut, and sugarcane, second in maize productivity, and third in paddy productivity.
Social Sector Progress and Demographic Challenges
▪ Social Sector Achievements
▪ Increased enrolment in all levels of education and strengthened its public healthcare system
▪ Social sector expenditure grew from ₹79,859 crore (2019-20) to ₹1,15,644 crore (2023-24).
▪ Poverty reduction:
✓ Tamil Nadu’s poverty rate (Headcount Ratio) dropped from 36.54% (2005-06) to 1.43% (2022-23).
✓ India’s rate declined from 55.34% to 11.28% in the same period.
Key welfare programs
✓ Illam Thedi Kalvi (education initiative)
✓ Pudhumai Penn (women’s education support)
✓ Makkalai Thedi Maruthuvam (doorstep healthcare)
✓ Chief Minister’s Breakfast Scheme (nutrition for school children)
▪ Education Sector Highlights -Tamil Nadu leads in Gross Enrolment Ratio (GER) in higher education.
▪ Demographic and Health Concerns
✓ Epidemiological transition: Shift from communicable to non-communicable diseases (e.g., diabetes,
heart disease).
Inflation Trends and Government Measures (Economic Survey 2024-25)
Inflation Trends in Tamil Nadu
▪ Retail inflation declined from – 6% (2022-23) → 5.4% (2023-24) → 4.8% (2024-25, as of Jan
2025) as per the Economic Survey of Tamil Nadu 2024-25.
▪ Tamil Nadu’s average inflation (2019-20 to 2023-24): 5.7% (higher than India’s 4.85%)
▪ Trend reversal since 2020-21
✓ Tamil Nadu’s inflation dropped significantly compared to the national average.
✓ Ranked 8th lowest retail inflation among 20 major States in 2023-24.
▪ Urban vs. Rural Inflation
✓ Urban inflation declined from 6% (2019-20) to 4.5% (2024-25)
✓ Rural inflation remained at 5.4%, driving overall inflation in the State.
▪ In the last three years, Tamil Nadu’s average rural and urban inflation was lower than India’s.
▪ Factors Influencing Tamil Nadu’s Inflation
✓ Labour-intensive services have a higher weightage in the State’s consumer price index (CPI)
basket when compared to the all-India basket and those of other peer States.
✓ Labour costs in Tamil Nadu are relatively high, affecting inflation.
Government Measures to Mitigate Inflation
▪ Subsidised electricity and transportation (help lower input costs).
▪ Universal Public Distribution System (PDS):
✓ Provides food commodities at subsidised prices.
✓ Shields the population from food inflation.
▪ Public transport initiatives like Magalir Vidiyal Payanam Thittam help absorb rising inflation.
▪ Rural inflation addressed through MGNREGS, despite reduced Union government allocations.
▪ Health expenses controlled through a robust public health system, supported by:
✓ Chief Minister’s Comprehensive Health Insurance Scheme.
Tamil Nadu Urban Employment Scheme (TNUES)
▪ According to the Economic Survey 2024-25, TNUES can contribute to employment and social
security among socially and economically vulnerable households in urban parts of the State,
particularly in town panchayats
▪ Modeled on MGNREGS, it aims to provide job opportunities for low and semi-skilled workers in urban
local bodies.
▪ Women constitute 83% of the workforce under TNUES
✓ 22% are agricultural workers
✓ 25% are primary breadwinners
✓ 18% belong to female-headed households
Employment Trends in Tamil Nadu
▪ Currently benefits from a demographic advantage with a peak working-age population.
▪ However, working-age population share is projected to decline from 66.4% in 2021 to 63.6% by
2036.
▪ Unemployment rate for individuals aged 15+ has been declining in both Tamil Nadu and India.
▪ The survey highlights the importance of TNUES in urban employment and the need for proactive
policies to address the future decline in the working-age population.
