Economic Survey of Tamil Nadu 2024 - 25

Economic Survey of Tamil Nadu 2024 - 25

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

Introduction

· Global Challenges and Resilience: Tamil Nadu's economy in 2024-25 faced various global challenges but demonstrated resilience.

· Impact of Global Disruptions: Factors like the pandemic, geopolitical tensions, and extreme weather events disrupted global supply chains, particularly in the energy and food sectors.

· Global Economic Growth: Despite these challenges, the global economy posted a real growth rate of 3.33% in 2023.

· India's Economic Performance: India’s economy recorded growth rates of 7.61% in 2022-23, 9.19% in 2023-24, and 6.48% in 2024-25.

· Tamil Nadu’s Consistent Growth: Tamil Nadu’s inclusive policies ensured consistent growth, maintaining a growth rate above 8% since 2021-22.

Tamil Nadu's Economic Strength

· Key Drivers of Growth: Progressive social policies, robust infrastructure, and a large skilled labor force have fuelled the state's growth.

· Contribution to National GDP: Tamil Nadu contributed 9.21% to India’s national GDP in 2023-24.

· Gross State Domestic Product (GSDP): The GSDP at current prices was ₹27.22 lakh crore in 2023-24.

Growth Rate

· Nominal growth rate: 13.71%

· Real growth rate: 8.33%

 

Sectoral Contributions

· Services Sector: The services sector is the largest contributor, accounting for 53.63% of the Gross State Value Added (GSVA).

· Secondary Sector: The secondary sector contributed 33.37% to the GSVA, with potential for further employment growth if it increases by 5%.

· Primary Sector: The primary sector contributed 13% to the GSVA.

Key Economic Indicators

· Exports: Tamil Nadu remains a major exporter of automobiles, auto components, textiles, and leather.

· Global Market Correlation: The state’s economy shows a strong correlation with global market trends.

· Per Capita Income: In 2022-23, Tamil Nadu’s per capita income was ₹2.78 lakh, 1.6 times the national average of ₹1.69 lakh.

· Ranked as the fourth-largest state in terms of per capita income.

Tamil Nadu’s Vision for a $1 Trillion Economy by 2030

· Strategic Planning for Growth: Tamil Nadu aims to achieve a $1 trillion economy by 2030 through strategic planning.

· This includes addressing challenges like climate change, demographic shifts, technological disruptions, and changing employment landscapes.

Global and State Inflation Trends

Global Inflation

· Global inflation reached 8.6% in 2022 and 6.7% in 2023 due to geopolitical tensions and climate change.

Inflation in India

· India's retail inflation (CPI) was 6.7% in 2022-23, 5.4% in 2023-24, and 4.9% in 2024-25 (until January 2025).

Inflation in Tamil Nadu

· Tamil Nadu’s retail inflation followed a similar downward trend, decreasing from 6% in 2022-23 to 5.4% in 2023-24, and further to 4.8% in 2024-25 (as of January 2025).

Comparative Analysis

· Between 2019-20 and 2023-24, Tamil Nadu’s average inflation rate was 5.7%, which was higher than India’s average of 4.85%.

· However, the trend reversed in 2021-22, and in 2023-24, Tamil Nadu recorded the 8th lowest retail inflation among 20 major Indian states.

 

Urban and Rural Inflation in Tamil Nadu

Urban Inflation Trends

· Urban inflation in Tamil Nadu decreased from 6% in 2019-20 to 4.5% in 2024-25 (until January 2025).

Rural Inflation Trends

· Rural inflation remained at 5.4%, thus driving the overall inflation in the state.

Agriculture in Tamil Nadu

Contribution to State Economy

· Agriculture contributes ₹1.5 lakh crore (6% of GSVA) and ranks as the fifth-largest sector in Tamil Nadu.

Crops in Tamil Nadu

· Food grains (including paddy, maize, jowar, ragi and millets) make up around 62% of the total cropped area, while non-food crops (oilseeds, sugarcane, and cotton) account for 38%.

Growth in Paddy Cultivation

· Paddy continues to dominate the cropping pattern, increasing from 32.1% of the total cropped area in 2019-20 to 34.4% in 2023-24.

Agricultural Productivity in Tamil Nadu

Top Agricultural Productivity

· According to the Agricultural Statistics at a Glance (2024), Tamil Nadu ranked first in oilseeds, groundnut, and sugarcane productivity, second in maize productivity, and third in paddy productivity.

Agricultural Credit in Tamil Nadu

Increase in Agricultural Credit

· Agricultural credit disbursed by scheduled commercial banks steadily increased from ₹1.83 lakh crore in 2019-20 to ₹3.58 lakh crore in 2023-24.

Government Incentives

· The Tamil Nadu government provides an extra incentive of ₹105 per quintal for paddy and ₹215 per tonne for sugarcane.

Agricultural Insurance

· Agriculture insurance protects farmers by offering financial support in case of crop loss due to unexpected natural disasters.

Horticulture and Livestock in Tamil Nadu

Horticulture Development

· Horticulture has become a key driver of agricultural development in Tamil Nadu, with the total area dedicated to horticulture reaching 16.3 lakh hectares in 2023-24.

Egg and Meat Production

· Tamil Nadu ranks second in egg production and sixth in meat production in India.

Fishing and Aquaculture

· Tamil Nadu exported 1.34 lakh tonnes of fish products, generating ₹6,854 crore in foreign exchange in 2023-24.

 

Tamil Nadu’s Industrial Strength

Contribution to Manufacturing GDP

· Tamil Nadu contributes 11.90% to India’s manufacturing GDP and leads the nation in the number of factories.

MSMEs in Tamil Nadu

· The state had 35.56 lakh Udyam-registered Micro, Small, and Medium Enterprises (MSMEs) in 2023-24, ranking second nationally.

 

Industrial and Manufacturing Growth

Growth in the Manufacturing Sector

· Between 2021-22 and 2023-24, the manufacturing sector grew at 8.33%, while the construction sector expanded by 9.03%.

Global Investors Meet 2024

Investment Secured

· The Global Investors Meet 2024 secured investments worth ₹6.64 lakh crore, expected to create 14.55 lakh jobs.

Industrial Credit and Foreign Investment

Credit to Industry

· From 2019-20 to 2023-24, total credit to Tamil Nadu’s industry through scheduled commercial banks increased from ₹2.5 lakh crore to ₹3.01 lakh crore.

Foreign Direct Investment (FDI)

· FDI in Tamil Nadu rose from ₹5,909 crore to ₹20,157 crore between 2019-20 and 2023-24.

Service Sector Overview

Workforce in Service Sector

· In 2023-24, 54.63% of Tamil Nadu’s urban workforce was employed in the service sector, close to the national average of 58.07%.

Credit-Deposit Ratio and Financial Growth

Credit-Deposit Ratio (CDR)

· Tamil Nadu CDR increased from 109.2% in 2019-20 to 117.7% in 2023-24.

· India’s CDR rose from 76.5% to 79.6%.

Labor Force and Employment Generation

Labor Force Participation Rate (LFPR)

· Tamil Nadu’s LFPR for individuals aged 15-59 years was 63.3% in 2019-20, compared to the all-India average of 56.9%.

· By 2023-24, Tamil Nadu’s LFPR rose to 64.6%, surpassing the national average of 64.3%.

Social Indicators and Social Sector Expenditure

Social Progress

· Tamil Nadu ranks among the top three states in multiple social indicators.

· Top in the Social Progress Index (SPI) and Gross Enrolment Ratio (GER).

· Second in low infant mortality, low birth rate, and low poverty levels.

· Third in the Sustainable Development Goals (SDG) Index and Health Index.

· Key initiatives include the Chief Minister’s Breakfast Scheme and programs empowering women, such as the Kalaignar Mahalir Urimai Thittam.

 

Poverty Reduction and Economic Indicators

Poverty Rate

· Between 2005-06 and 2022-23, Tamil Nadu’s poverty rate (Headcount Ratio) decreased significantly, from 36.54% to 1.43%.

Education and Literacy

Student Enrolment

· Currently, 1.29 crore students are enrolled in 58,722 schools, accounting for 5.24% of the total student enrolment in India.

Gross Enrolment Ratio (GER)

· Elementary: 98.4% (National: 91.7%)

· Secondary: 97.5% (National: 77.4%)

· Higher Secondary: 82.9% (National: 56.2%)

School Education Quality

· Tamil Nadu ranks second in the School Education Quality Index (SEQI) with a score of 73.4%, behind only Kerala.

Healthcare and Social Well-being

Healthcare Infrastructure

· Tamil Nadu ranks third in life expectancy among major Indian states and is a prominent hub for medical tourism.

· The state’s healthcare infrastructure includes 8,713 health sub-centers, 2,336 primary health centers, 372 government hospitals, and 36 government medical college hospitals.

Climate Change and Environment

Government Actions on Climate Change

· The Tamil Nadu government has developed the Tamil Nadu State Action Plan on Climate Change (2023-30) and established a ₹1,000 crore Green Fund.

· Tamil Nadu secured the top rank in NITI Aayog’s SDG 13 (Climate Action) Index for 2023-24, with a score of 81.

 

-------------------------------------