Chennai, Dec 17 (NationPress) Tamil Nadu’s economic landscape has achieved remarkable growth, propelled by the State government’s long-term vision, innovative industrial policies, and sound fiscal management, stated Finance Minister Thangam Thennarasu on Wednesday.

During a media briefing at the Secretariat in Chennai, Thennarasu highlighted that the government led by Chief Minister M.K. Stalin has established a robust foundation for ongoing economic growth, positioning Tamil Nadu to experience one of its highest growth rates in recent history.

Quoting figures from the Reserve Bank of India (RBI), he noted that the State’s Gross State Domestic Product (GSDP) at current prices surged from Rs 26.88 lakh crore in 2023-24 to Rs 31.19 lakh crore in 2024-25, marking an impressive 16 percent increase.

This achievement signifies a pivotal milestone in Tamil Nadu’s quest to reach a $1 trillion economy by 2030.

Thennarasu emphasized that Tamil Nadu has consistently achieved double-digit growth at current prices over the last four years, with the manufacturing sector playing a significant role in this upward trend.

During this period, the manufacturing sector’s contribution to GSDP grew by Rs 1.46 lakh crore. The state now boasts around 40,121 factories, providing employment to nearly 24.75 lakh people.

The construction sector has also been instrumental, exhibiting close to 11 percent growth in 2024-25, thereby bolstering overall economic dynamics.

Focusing on the services sector, Thennarasu remarked that it contributes roughly 53 percent to Tamil Nadu’s Gross Value Addition and achieved a real growth rate of 11.3 percent in 2024-25.

He acknowledged that the government’s continuous emphasis on enhancing infrastructure, simplifying business operations, and fostering skill development has facilitated the growth of both manufacturing and services.

The Finance Minister also revealed that the State's export performance has seen astonishing improvements, with exports experiencing nearly a sevenfold increase over the past four fiscal years.

This progress is credited to proactive policy initiatives and the Chief Minister’s international visits, which attracted investments totaling Rs 11.47 lakh crore and created job opportunities for approximately 34.08 lakh people.

Regarding fiscal indicators, Thennarasu stated that the fiscal deficit is anticipated to be 3 percent of GSDP in 2025-26, while the debt-to-GSDP ratio has decreased from 27 percent in 2021-22 to 26 percent in 2024-25, indicating enhanced fiscal discipline.

However, he criticized the Union government for progressively reducing its contribution to welfare schemes, thereby shifting a greater financial burden onto the states.

He mentioned that the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), which replaces the Mahatma Gandhi National Rural Employment Guarantee Act, would significantly elevate Tamil Nadu’s fiscal responsibilities.