Economic survey points to uneven growth in Tamil Nadu

CHENNAI: Tamil Nadu could boast of enviable statistics on most development indices nationally, but the State must diversify or democratise its growth within Tamil Nadu to emerge as a truly developed state, which is on par with a few developed countries on some parameters.

Even the Economic Survey of Tamil Nadu 2024-25, first of its kind, acknowledged the extent of regional imbalances. The State’s economic development was more evenly distributed across cities like Coimbatore, Madurai, Trichy, Tiruppur and Salem, contributing to bridging the urban-rural divide. As per the survey, the north zone comprising the KTCC (Kancheepuram, Tiruvallur, Chengalpattu and Chennai), contributes 36.6% of GSDP, while the western zone accounts for 29.6% with 22.8% of the population. Significantly, the per capita income of the western zone, of which Coimbatore and Tirupur are a part, was marginally higher (118%) than the northern zone (115%). Southern and Eastern zones, which account for 20.5% and 25.5% of the State population, contribute 18.8% and 15.1% of the economy.

The survey, which highlighted some variations in per capita income data, showed that Chengalpattu recorded the highest per capita at Rs 6.48 lakh, followed by Kancheepuram (Rs 6.47 lakh) and Chennai (Rs 5.19 lakh). The per capita income of eight of the 38 districts in the State exceeded the State average of Rs 2.78 lakh, and even higher than major states like Telangana, Haryana and Karnataka. However, the per capita income of the remaining 30 districts was below the State average, indicating the enormity of imbalance.

For instance, Tiruvarur has the lowest per capita of Rs 1.48 lakh, followed by Villupuram (1.48 lakh) and Perambalur (1.54 lakh), which was still higher than the State average of Bihar, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. The extent of imbalance was also validated by Tiruvarur, Villupuram, Perambalur, Mayiladuthurai, Ariyalur, Kallakurichi and Ramanathapuram having per capita figures lower than the national average. The State’s GSDP growth in 2024-25 is projected to be upwards of 8%, assuming that Capex and industrial investments continue to generate momentum. If the state’s economy surpasses previous growth rate by more than one percentage point, growth could potentially exceed 9% for 2024-25, the Survey read, forecasting a short-term real growth of approximately 9% with an inflation rate of around five percent.

Over the medium term, this growth rate may moderate to 8% with a 4% inflation rate, reflecting the long-term sustainability of growth driven by industrial, agricultural, and service sector reforms.