Key Points

Tamil Nadu has registered an impressive 11.19 per cent real economic growth rate for the financial year ending 2025, marking the highest growth rate since 2010-11, when it achieved 13.12 per cent.

Latest revised estimates were prepared as on August 1, 2025 by the Union Ministry of Statistics and Programme Implementation for various states.

It has exceeded the forecast made in the Tamil Nadu Budget, presented early this year, by nearly 2.2 per cent.

Chief Minister MK Stalin said that he state's economic growth, which was previously estimated to be around 9.69 per cent (2024-25) has now increased to 11.19 per cent, the highest in the country.

"Tamil Nadu's Dravidian Model Government stands tall as the only State in India to achieve double-digit economic growth! We proudly declared that Tamil Nadu led the nation with a growth rate of 9.69%. Now, that too has been surpassed. As per the revised estimates of the Union Government, Tamil Nadu has recorded a staggering growth rate of 11.19% -- the highest in the country!," Stalin said in a post on X today.

"When we set the target of becoming a One Trillion Dollar Economy by 2030, many raised their eyebrows. It's too ambitious,' they said. But with growth like this, what once seemed distant is now well within reach!" the Tamil Nadu Chief Minister said.

He pointed out that the last time that Tamil Nadu had achieved double digit growth was under DMK government too in the year in 2010-11.

Chief Economist Infomerics Ratings, Manoranjan Sharma attributed the growth to the strong performance by the tertiary and secondary sectors.

"If the state continues in this kind of about the state has a dream of becoming a trillion-dollar economy by 2031-32 so this is very much on the cards," Sharma said.

"This higher growth will have a very good impact on significant fiscal metrics such as lower fiscal and revenue deficit and debt to gstp ratio. If all the three major sectors of Tamil Nadu do consistently well by even half a percent more, we could see a growth rate of Tamil Nadu in excess of 12 per cent in the next year and going forward," economist Manoranjan Sharma said.

"If the state continues on this path, the state has the dream of becoming a one trillion economy by 2031-32. So this is very much on the cards. This higher growth will have a very good impact on significant fiscal metrics such as lower fiscal and revenue deficit and debt to GSTP ratio," Sharma added.

Sharma highlighted that such high growth would have a positive impact on the state's fiscal metrics, including a reduction in the fiscal and revenue deficits and a healthier debt-to-GSDP ratio.

The state's performance could also set a benchmark for others. "States previously considered economically lagging, like Bihar, Madhya Pradesh, and Uttar Pradesh, have also begun showing signs of improvement," Sharma noted. "Tamil Nadu's success can serve as both a model and a motivator, encouraging other regions to close the developmental gap."

Ranjeet Mehta, Secretary General PHDCCI said, "Tamil Nadu is a very progressive state, and they have created a very enabling ecosystem for the industry in their state. We have seen recently that there have been many global investors who have invested in Tamil Nadu, and they have a very skilled population, more than 30 lakh MSMEs, who are doing a great job. And the state has a very large infrastructure ecosystem, and they have economic corridors."

"Their contribution majorly has come from service sector, which is around 53 per cent and then that, you know, in 2010 or 11, I think they were around 13 per cent this time, they have achieved 11.919 per cent this is the only state in the country which has achieved a double digit growth which is very encouraging," Mehta said.

"And the kind of, you know, industrial corridors they are making, and the companies which are coming in, electronics and other sectors, it's very encouraging. And all other states should also definitely get motivated by seeing the growth of Tamil Nadu, which is a very important economy in India's total economic system," Mehta said.

In the Tamil Nadu Budget presented earlier this year the State Government had projected Tamil Nadu's nominal Gross State Domestic Product (GSDP) to grow at 14.5 per cent in 2024-25, with real growth put at 9 per cent and an average inflation of 5 per cent.

According to experts, the surge in the economic growth will likely result in more job opportunities, increased investments, and a stronger overall economy in the coming years.

- ANI