Tamil Nadu's $1 trillion economy goal could shift to 2032
Tamil Nadu has set its sights on becoming a $1 trillion economy by 2031—a bold goal backed by strong growth in recent years.
The state's plan counts on steady gains and a bit of luck with currency rates, but if the dollar strengthens faster than expected, the target could shift to 2032.
Manufacturing is booming
Tamil Nadu just posted India's highest GSDP growth, recording about 11.2%, and its GSDP level hit ₹31.19 lakh crore in 2024-25.
Per person income is now ₹3.62 lakh—way above the national average.
Manufacturing is booming too, with exports nearly doubled from 2020-21 to 2024-25, and FDI rose from $2,169 million in 2022-23 to $3,681 million in 2024-25.
Inflation has stayed low
Even after US tariffs hit textile exports hard, Tamil Nadu bounced back after actions by the Union government, including the suspension of the 11% customs duty on cotton until December 2025.
Inflation has stayed low as well, giving folks some breathing room.
State is betting big on manufacturing
To reach that trillion-dollar milestone, the state is betting big on both high- and low-skill manufacturing—an approach suggested by top economists like Raghuram Rajan and Arvind Subramanian.
The government is determined not to lose momentum.