Tamil Nadu outlines strategy for $1 trillion economy by 2030: Jeyaranjan

Tamil Nadu State Planning Commission Vice-Chairman J Jeyaranjan outlined the state's strategy for a $1 trillion economy by 2030, driven by manufacturing, social inclusion, and key welfare schemes to boost growth and domestic demand.

Tamil Nadu State Planning Commission Vice-Chairman Professor Dr J Jeyaranjan on Monday met journalists in Chennai and addressed a wide range of issues relating to the State's development initiatives and policy priorities, outlining the government's strategy to strengthen economic growth, social welfare and sustainable development.

Tamil Nadu's Vision for a $1 Trillion Economy

During the interaction, he detailed ongoing and proposed measures to accelerate growth while deepening social inclusion, supported by structured planning strategies and implementation frameworks, according to a release. Jeyaranjan said Tamil Nadu is working toward achieving a one-trillion-dollar economy by 2030, supported by strong manufacturing performance, rising per capita income, expanding infrastructure, and sustained social sector investments.

Economic Performance and Sectoral Growth

In 2024-25, the primary sector contributed 13.4 per cent to the State's Gross State Value Added (GSVA), the secondary sector 33.1 per cent and the services sector 53.6 per cent. The services sector recorded a real growth rate of 11.3 per cent. Manufacturing registered a real growth rate of 14.74 per cent in 2024-25, significantly higher than the national average. Over the four-year period from 2021-22 to 2024-25, Tamil Nadu recorded an average manufacturing growth rate of 9.38 per cent.

Strong Performance in Trade and Investment

The State continues to rank first in exports of electronics, textiles and leather products, and second in engineering exports. Merchandise exports nearly doubled from US$26.15 billion in 2020-21 to US$52.07 billion in 2024-25. Despite a moderation in overall national FDI inflows, Tamil Nadu's FDI rose steadily from US$2,169 million in 2022-23 to US$3,681 million in 2024-25.

Rising Per Capita Income and Balanced Regional Growth

Per capita income reached Rs 3.62 lakhs in 2024-25, 1.77 times the national average of Rs 2.05 lakhs. In 32 of the State's 38 districts, per capita income exceeded the all-India average. Unlike states where economic activity is concentrated in a single metropolitan centre, Tamil Nadu's development is distributed across multiple urban hubs, including Coimbatore, Madurai, Tiruppur, Tiruchirappalli and Salem, the release noted.

Agriculture and Allied Sectors

Agriculture accounts for 6.6 per cent of GSVA. The gross cropped area stood at 62.25 lakh hectares in 2024-25 with a crop intensity of 1.29. Tamil Nadu ranked first in ragi and sugarcane yields, second in oilseeds and third in groundnut production. The livestock sector contributed Rs.1.47 lakh crore to GSVA in 2024-25. Egg production increased from 39,249 lakh in 2001-02 to 2.2 lakh million in 2023-24. Credit disbursal to farmers rose from Rs 2.23 lakh crore in 2019-20 to Rs 4.52 lakh crore in 2023-24.

Labour, Education, and Health Metrics

The labour force participation rate increased from 71.5 per cent in 2021-22 to 72.1 per cent in 2023-24, while unemployment declined from 5.1 per cent to 3.5 per cent during the same period. Tamil Nadu's Gross Enrolment Ratio in higher education stands at 47 per cent compared to the national average of 28.4 per cent. The State has 463 engineering and architecture colleges and 492 polytechnic institutions. The infant mortality rate stands at 12 per 1,000 live births in 2023, and life expectancy is 73.4 years. However, Prof. Jeyaranjan noted that despite high educational attainment, labour force participation among young, educated women remains relatively low due to care burdens, mobility constraints, and social norms, according to the release.

Inflation and Fiscal Management

Retail inflation declined from 5.4 per cent in 2023-24 to 2.3 per cent in 2025-26. Food inflation moderated significantly, while urban inflation continues to be the primary driver of overall price levels.

Focus on Capital Expenditure and Fiscal Prudence

Total capital expenditure between 2020-21 and 2025-26 amounted to Rs 2.54 lakh crore, reflecting a focus on asset creation. While the debt-to-GSDP ratio remains within recommended thresholds, future fiscal pressures from pay revisions, pensions and GST rationalisation could constrain fiscal space.

Social Welfare as an Economic Driver

Social sector expenditure increased from Rs 1,13,268 crore in 2021-22 to Rs 1,57,864 crore in 2025-26 (RE). Welfare programmes such as Naan Mudhalvan, Pudhumai Penn, the Chief Minister's Breakfast Scheme, and Kalaignar Magalir Urimai Thittam were highlighted as measures to stabilise consumption, reduce household risk, and strengthen domestic demand. Prof. Jeyaranjan said the State's development model integrates social justice with economic growth, treating welfare as an enabler of productivity and participation rather than a residual expenditure. (ANI)

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