Chennai: 

The economic survey reveals that northern Tamil Nadu leads in population growth and contributes 36.6 per cent to the state's Gross Domestic Product (GDP). It emphasised the state's resilience in the face of global economic challenges, projecting a consistent growth rate of 8 per cent or above for 2024-25.

Tamil Nadu set a target to become a $1 trillion economy by 2030 in its first-ever economic survey released by Chief Minister M K Stalin. The survey, launched during the sixth meeting of the State Planning Committee, highlights the state's impressive economic performance and outlines the challenges and opportunities ahead.

Despite setbacks, Tamil Nadu's infrastructure, skilled workforce, and progressive social welfare policies have enabled it to maintain strong economic growth since 2021-22.

In 2023-24, Tamil Nadu's Gross State Domestic Product (GSDP) reached Rs 27.22 lakh crore, with a nominal growth rate of 13.71 per cent and a real growth rate of 8.33 per cent. The state's per capita income stands at Rs 2.78 lakh, higher than the national average of Rs 1.69 lakh, securing Tamil Nadu's rank as the fourth highest in India.

The state ranks first in the production of motor vehicles, garments, and leather goods and is also a major exporter of engineering products, textiles, and electronics. It ranks second in textiles, machinery and electronic products. In 2023-24, 33.31 per cent of the total workforce in Tamil Nadu (15.97 per cent manufacturing, 17.2 per cent construction) was engaged in industrial activities.

Aiming for continuous industrial and economic progress, the state plans to expand key sectors like electronics, Information Technology (IT), renewable energy, and logistics. As one of India's leading powerhouses, Tamil Nadu's manufacturing sector contributes 11.9 per cent to the GDP of the nation.

Socially, Tamil Nadu excels in key indicators, ranking first in Social Progress Index and higher education enrollment, and second in mortalty and poverty rates. Tamil Nadu has also seen a significant reduction in poverty, with the rate dropping from 36.54 per cent in 2005-06 to just 1.43 per cent in 2022-23.

Tamil Nadu has three universities ranked in the top 100, demonstrating its performance in higher education. Four government arts and scientific colleges and eight state universities rank among the top 100 colleges and institutions in the nation. Several universities in the state have achieved the highest NAAC accreditation grade (A++, A+, A). With 492 polytechnics and 506 engineering colleges, it has the most technical institutions in India.

However, climate change poses a growing challenge for Tamil Nadu. Rising temperatures, extreme weather events, and a decline in rainfall are affecting agriculture, particularly in the North-Eastern and Eastern Ghats.

State Planning Commission Acting Deputy Chairman Jayaranjan told reporters, "Tamil Nadu's economic growth may increase by 12 percent in the coming years."

"The economic situation will change based on international market events. Tamil Nadu is ahead in vehicle manufacturing, electrical appliances, and textile manufacturing in India. The Tamil Nadu government has decided not to use the symbol for the rupee since it is in the Devanagari language," Jayaranjan added.

Jayaranjan added, "The Economic Survey Report has been published as a study report on the economic and financial situation in Tamil Nadu in the last five years. Such an economic survey report has not been submitted before. The economic survey report has been prepared for the first time. Matters related to the overall economic status of Tamil Nadu have been included in the study report."

He added, "There is no need to reduce Tamil Nadu's debt burden. This is not a debt burden. Personal debt and government debt should not be combined. The Tamil Nadu government has taken loans in accordance with the regulations of the Reserve Bank of India. State government borrowing is a process of the budget. There is nothing wrong with borrowing according to the state's production value. Borrowing is done only under the production value. The capital expenditure can only be met by borrowing. It is planned to implement projects like Metro Rail by borrowing and repaying it in 30 years."

"According to the Centre's GSTP metrics, Tamil Nadu can borrow up to 28 per cent, but we have borrowed less than that, i.e. only up to 26 per cent. No one in the world could predict the impact of artificial intelligence. When computers came, it was said that jobs would be lost in large numbers. But people were needed to work on computers. Therefore, even if artificial intelligence technology comes, humans are needed to implement it. Its impact cannot be calculated at the moment. We have consulted the Chief Minister to study this in the coming years," he added.

According to Jayaranjan, Tamil Nadu is the state that provides the highest amount of commercial loans in India. "Tamil Nadu is the state with the largest number of women entrepreneurs. Due to climate change, the sea level in estuaries has risen and the groundwater has turned into salt water. As a precautionary measure, barriers were set up in estuaries across Tamil Nadu. The quality of groundwater has improved within a few months of the installation of the dams," he added.

He further said, "In Tamil Nadu, the cities of Chennai, Chengalpattu and Coimbatore have achieved economic growth due to industry. While economic growth has slowed down in the delta districts, steps have been taken to start industries in those areas. Tamil Nadu's economic growth, which is 8 per cent, is likely to increase to 12 percent in the coming years."