Growth performance in 2024-25
Tamil Nadu Economic Growth 2025: Tamil Nadu recorded a GSDP growth rate of 16% in 2024-25, the highest among Indian states. This performance placed the state ahead of major economies like Maharashtra and Gujarat in terms of growth pace. The data highlights Tamil Nadu’s strong economic momentum in the post-pandemic recovery phase.
The growth figures were officially reported by the Reserve Bank of India (RBI). They were published in the RBI’s annual publication, the Handbook of Statistics on Indian States, 2024-25, which tracks state-level macroeconomic indicators.
Expansion of the state economy
Between 2021 and 2025, Tamil Nadu’s economy expanded by ₹10.50 lakh crore. This indicates sustained economic expansion over four consecutive financial years. The total GSDP value reached ₹31.19 lakh crore in 2024-25.
At current prices, the GSDP increased sharply from ₹26.88 lakh crore in 2023-24 to ₹31.18 lakh crore in 2024-25. This rise reflects both real output growth and price-level effects.
Static GK fact: Gross State Domestic Product measures the total value of goods and services produced within a state’s boundaries in a financial year.
Consistent growth trend
Tamil Nadu has maintained a consistent double-digit growth trajectory for the past three years. The state recorded 14.47% growth during 2021-22, 2022-23, and 2023-24, leading up to the stronger expansion in 2024-25.
This steady trend indicates structural strength in the state economy. Manufacturing, services, and infrastructure investment have contributed to the sustained expansion.
Static GK Tip: Tamil Nadu is one of India’s most industrialised states, with strong automobile, textile, electronics, and MSME sectors.
Comparison with other states
Although Maharashtra continues to have the largest GSDP in absolute terms, its growth rate remained slower than Tamil Nadu in 2024-25. This highlights the difference between size and growth momentum.
Karnataka showed consistent double-digit growth but lagged behind Tamil Nadu in the pace of expansion during 2024-25. Uttar Pradesh recorded strong growth between 2022-23 and 2023-24, but its growth moderated in 2024-25.
Tamil Nadu’s performance stands out for its stability and acceleration, rather than short-term spikes.
Rise in per capita income
Tamil Nadu crossed a major milestone as its per capita income exceeded ₹1.9 lakh per year. This reflects improved income levels and economic well-being.
In 2024-25, per capita income rose sharply to ₹3,61,619, up from ₹3,13,329 in 2023-24. This significant increase mirrors strong growth in output and employment.
Static GK fact: Per capita income is calculated by dividing state income by population and is used as an indicator of living standards.
National ranking and significance
Tamil Nadu currently ranks fourth in per capita income among Indian states. It is positioned behind Delhi, Telangana, and Karnataka, while remaining ahead of several large economies.
The state’s strong growth, rising incomes, and stable performance underline its role as a key driver of India’s overall economic growth in the southern region.
Static Usthadian Current Affairs Table
Tamil Nadu Economic Growth 2025:
| Topic | Detail |
| GSDP growth rate | 16% in 2024-25 |
| Reporting authority | Reserve Bank of India |
| RBI publication | Handbook of Statistics on Indian States, 2024-25 |
| GSDP value | ₹31.19 lakh crore |
| GSDP increase | ₹26.88 lakh crore to ₹31.18 lakh crore |
| Economy expansion | ₹10.50 lakh crore between 2021–2025 |
| Per capita income 2024-25 | ₹3,61,619 |
| Per capita income rank | Fourth among Indian states |
| States outpaced | Maharashtra and Gujarat |
