Tamil Nadu’s growth record

Why in news

Tamil Nadu recorded a real GSDP growth of 10.83% in 2025-26, exceeding the national average and marking its second consecutive year of double-digit growth.

Background

Tamil Nadu is India's second-largest state economy. Its nominal GSDP expanded from ₹31.19 lakh crore in 2024-25 to ₹35.29 lakh crore in 2025-26, a 13.16% increase.

Facts for Prelims

• FactTamil Nadu real GSDP growth in 2025-26: 10.83%
• FactNational average real GSDP growth: 7.4%
• FactTamil Nadu nominal GSDP growth in 2025-26: 13.16% (highest among states)
• FactTamil Nadu average real growth (2021-22 to 2025-25): 9.07%

For Mains

Q. Analyze the structural and policy factors that contribute to the sustained high-growth trajectory of leading state economies in India.

Dimensions to cover in your answer

• Structural strengths: Leveraging industrial policy and fiscal measures to drive post-pandemic recovery
• Regional disparity: Divergence between high-performing state economies and the national average growth

Keywords: GSDP · Fiscal measures · Industrial policy · Structural strengths · Economic trajectory

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