A Trillion Dollar Dream

Tamil Nadu, the second-largest economy in India, boasts a significant contribution to the country's economy, accounting for approximately 9.6% of its GDP. Its march towards a trillion-dollar economy by 2030 is based on investment-led growth, focusing on agriculture, credit, infrastructure, and skill development.

- Satheesh Lakshmanan

Tamil Nadu Finance Minister Thangam Thennarasu, in his recent maiden State Budget speech, referenced the insightful words of Nobel Laureate and distinguished economist Amartya Sen regarding Tamil Nadu's remarkable growth trajectory:

"Tamil Nadu is one of the states which had achieved rapid progress within a relatively short period despite it starting from appalling levels of poverty, deprivation and inequality. Tamil Nadu initiated bold social programmes and has some of the best public services among all Indian States and many of them are accessible to all on a non-discriminatory basis. Tamil Nadu has one of the highest per capita income and lowest poverty rates among all Indian States. This is an important example of the complementarity between economic growth and public support."

In India, only a few states have achieved progress on both the economic and social fronts. Tamil Nadu is one such progressive state that has set an ambitious target to become a $1 trillion economy by 2030. Despite accounting for only 6% of the country's population, Tamil Nadu stands out as a beacon of economic dynamism and growth.

Some key highlights of Tamil Nadu's economic prowess include being India's second-largest economy, with a GSDP of INR 23.64 lakh Crores in FY23. The state's growth is underpinned by a commitment to social inclusivity and regional distribution, reflected in its per capita income, which is 1.75 times that of India's average, and an average urbanization rate of 48%. Tamil Nadu also leads the nation in several aspects, ranking first in the Export Preparedness Index and second in Ease of Doing Business, a significant jump from its 18th rank in 2018. It is the top state in manufacturing and exporting electronics and automobiles.