The State Economy

Tamil Nadu is one of the most industrialised states and the third largest economy in the country. The State Domestic Product stands at US$ 27.4 billion and the current economic growth rate is 6.1 per cent. The exports are recorded at US$ 6,450 million with a Compounded Average Growth Rate (CAGR) of 9 per cent in the past decade.

Source: Department of Economics and Statistics, Tamil Nadu

The growth in manufacturing and services sectors has fed and in turn benefited from the rise in the standard of living of the people in the state. The state is ranked third in the country with respect to per capita state income, which has grown at a CAGR of 5 per cent*.The state also has a share of 9.1 per cent Market Potential Value in the country, which reflects a high buying power and capacity of the market to absorb new products and services. There has been a significant increase in the proportion of population in the middle-income group. 

The services sector is the dominant contributor to the Net State Domestic Income. With 700 per cent growth in the IT sector in the state, the contribution of the services sector is only going to increase further. The state attracts second highest number of foreign tourists registering a CAGR of 16 per cent during 1997-2002.

Source: www.tn.gov.in

Source: Economic Survey of Tamil Nadu

The state accounts for 16 per cent of the total number of factories in the country. It also has a well developed manufacturing sector with a high value addition in the factories. Manufactured goods have a dominant market share in total industrial output in the state.

Source: Economic Survey of Tamil Nadu

A significant portion (56 per cent) of the population continues to live in villages and relies on agriculture as their principal source of income. The key crops grown in the state are rice, sugarcane and groundnut. The crop yield in the state is substantially higher than the national and world averages.

Source: www.tidco.com

Content Source: www.ibef.org