TN: Economic growth hits new high on strong fiscal management, industrial push

Chennai, Dec 17 Tamil Nadu’s economy has reached new heights, driven by the State government’s long-term vision, progressive industrial policies and prudent fiscal management, Finance Minister Thangam Thennarasu said on Wednesday.

Addressing the media at the Secretariat in Chennai, Thennarasu said the Chief Minister M.K. Stalin-led government had laid a strong foundation for sustained economic expansion, enabling Tamil Nadu to record one of its highest growth rates in recent years.

Citing data from the Reserve Bank of India (RBI), he said the State’s Gross State Domestic Product (GSDP) at current prices rose from Rs 26.88 lakh crore in 2023-24 to Rs 31.19 lakh crore in 2024-25, reflecting a robust growth of 16 per cent.

He said this performance marked a crucial milestone in the State’s journey towards achieving a $1 trillion economy by 2030.

Tamil Nadu, he added, has consistently recorded double-digit growth at current prices over the past four years, with the manufacturing sector emerging as a key driver of this momentum.

Over the same period, the manufacturing sector’s contribution to GSDP increased by Rs 1.46 lakh crore. The state now has nearly 40,121 factories, employing about 24.75 lakh people.

The construction sector has also played a significant role, registering close to 11 per cent growth during 2024-25, further strengthening overall economic activity.

Highlighting the services sector, Thennarasu said it accounts for nearly 53 per cent of Tamil Nadu’s Gross Value Addition and recorded a real growth of 11.3 per cent in 2024-25.

He noted that the government’s sustained focus on improving infrastructure, ease of doing business and skill development had supported the expansion of both manufacturing and services.

The Finance Minister said the State’s export performance had seen remarkable improvement, with exports recording nearly sevenfold growth over the last four financial years.

He attributed this progress to proactive policy measures and the Chief Minister’s overseas visits, which helped attract investments worth Rs 11.47 lakh crore and generate employment opportunities for around 34.08 lakh people.

On fiscal indicators, Thennarasu said the fiscal deficit is projected at 3 per cent of GSDP in 2025-26, while the debt-to-GSDP ratio has declined from 27 per cent in 2021-22 to 26 per cent in 2024-25, reflecting improved fiscal discipline.

He, however, alleged that the Union government was steadily reducing its share in welfare schemes while shifting a greater financial burden to states.

He said the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), which replaces the Mahatma Gandhi National Rural Employment Guarantee Act, would significantly increase Tamil Nadu’s fiscal responsibility.

--IANS

aal/dan

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor