Robust fiscal management, visionary leadership drive T.N.’s economic growth: Thangam Thennarasu

Minister for Finance Thangam Thennarasu on Wednesday (December 17, 2025) said the Chief Minister M.K. Stalin-led government’s visionary and long-term outlook, new industrial policies, and robust fiscal management have helped Tamil Nadu achieve new heights in its economic growth rate.

Speaking to reporters at the Secretariat in Chennai, Mr. Thennarasu said, according to Reserve Bank of India (RBI) data, Tamil Nadu’s Gross State Domestic Product (GSDP) at current prices increased from ₹26.88 lakh crore in 2023-24 to ₹31.19 lakh crore in 2024-25, registering a growth of 16%. This marked a significant step towards the government’s target of achieving a $1 trillion economy by 2030.

Mr. Thennarasu said the State has recorded double-digit growth at current prices over the past four years, with the manufacturing sector playing a crucial role. Over the same period, Tamil Nadu’s manufacturing GSDP increased by ₹1.46 lakh crore. The State has nearly 40,121 factories providing employment to about 24.75 lakh people. The construction sector has also made a significant contribution to growth, recording close to 11% growth in 2024-25.

The Finance Minister pointed out that the services sector, which accounts for nearly 53% of the State’s Gross Value Addition, registered a real growth of 11.3% in 2024-25. The State government has also been focusing on the export sector, and the Chief Minister’s visits to foreign countries have helped attract investments worth ₹11.47 lakh crore and generate employment for 34.08 lakh people. The export sector recorded nearly sevenfold growth over the last four financial years, he said.

According to the Minister, the fiscal deficit is projected at 3% of GSDP in 2025-26, while the debt-to-GSDP ratio has declined from 27% in 2021-22 to 26% in 2024-25. He alleged the Centre is reducing its contribution to welfare schemes while increasing the contribution of States. He said the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), would increase the State’s fiscal burden.