Tamil Nadu Finance Minister Thangam Thennarasu on Wednesday said the visionary and long-term approach of the Chief Minister M.K. Stalin-led government, supported by new industrial policies and strong fiscal management, had propelled the State to new heights in economic growth.Speaking to reporters at the Secretariat, he said Reserve Bank of India data showed that Tamil Nadu’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, registering a growth of 16 per cent. He said this marked a major step towards achieving the State’s goal of becoming a USD one trillion economy by 2030.
The Minister said Tamil Nadu had recorded double-digit growth at current prices for the past four years, driven largely by the manufacturing sector. Over this period, manufacturing GSDP increased by Rs 1.46 lakh crore. The State now has about 40,121 factories providing employment to nearly 24.75 lakh people. The construction sector also contributed significantly, recording close to 11 per cent growth in 2024-25.
Thennarasu said the services sector, which contributes around 53 per cent to the State’s Gross Value Addition, recorded a real growth of 11.3 per cent during the year. He added that focused efforts on exports and the Chief Minister’s foreign visits had helped attract investments worth Rs 11.47 lakh crore and generate employment for 34.08 lakh people, with exports registering nearly sevenfold growth over the last four financial years.
On fiscal indicators, the Finance Minister said the fiscal deficit was projected at 3 per cent of GSDP in 2025-26, while the debt-to-GSDP ratio had declined from 27 per cent in 2021-22 to 26 per cent in 2024-25. He alleged that the Centre was reducing its contribution to welfare schemes while shifting a higher financial burden onto States, and said the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), which replaces MGNREGA, would further strain the State’s finances.