Day before Budget, Tamil Nadu becomes first Indian state to release Economic Survey report

CHENNAI: Tamil Nadu is poised to grow at 8 pc in the 2024-25 fiscal, said the Economic Survey of Tamil Nadu, the first such report card of the state economy released by the state government ahead of the presentation of state budget for the next fiscal.

According to the survey report submitted to Chief Minister MK Stalin by the State Planning Commission on Thursday morning, the global economy posted a real growth rate of 3.33 pc in 2023 and the Indian economy recorded 7.61 pc growth in 2022-23, 9.19 pc in 2023-24 and 6.48 pc in 2024-25.

“Building on a strong foundation of inclusive policies, Tamil Nadu has demonstrated remarkable economic resilience, consistently achieving growth rates of 8 pc or more since 2021-22. The state is expected to maintain a growth rate above 8 pc in 2024-25,” the report said, crediting the state for its remarkable statistics achieved despite Covid pandemic and geopolitical tensions and extreme weather events disrupting global supply chains and triggering crises in energy and food sectors.

Retail inflation in check; 8th lowest in country

The state has also fared well in keeping retail inflation in check despite global and domestic challenges--mainly natural disasters witnessed every year. As per the survey, Tamil Nadu experienced a decline in retail inflation from 6 pc in 2022-23 to 5.4 pc in 2023-24 and further to 4.8 pc in 2024-25 (till Jan 2025), just about the same period when the Global inflation increased due to geopolitical tensions and climate change, reaching 8.6 pc in 2022 and 6.7 pc in 2023.

India’s retail (CPI) inflation was 6.7 pc in 2022- 23 and 5.4 pc in 2023-24 (and 4.9 pc in 2024-25 till Jan 2025) during the same period. The report also placed Tamil Nadu in the 8th position, among 20 major Indian states, for the lowest retail inflation in 2023-24.

4th in per capita income

With a per capita income of Rs 2.78 lakh (national average is Rs 1.69 lakh), the state ranked fourth among the major states in 2022-23, trailing Telangana (Rs 3.13 lakh), Karnataka (Rs 3.04 lakh), and Haryana (Rs 2.97 lakh). The Service sector contributed largely to the Gross State Value Added in the state in the fiscal, followed by the secondary and primary sectors at 33.37 pc and 13 pc, respectively.