Tamil Nadu has, for the second consecutive year, recorded a double-digit real economic growth rate of 10.83% for 2025-26.
During 2024-25, it was 11. 19%. Again, the figure for 2025-26 could be the highest for any State, even though the Union Ministry of Statistics and Programme Implementation has not yet released the data for 11 States including Uttar Pradesh, Punjab and Kerala, besides four Union Territories.
The performance on the growth rate “significantly surpasses” the national average growth rate of 7.4% (base year: 2011-12). With two consecutive years of double-digit growth, the State’s trajectory reflects “a strong policy framework, a resilient industrial base, a robust infrastructure, and a sustained commitment to inclusive and sustainable development,” says K.R. Shanmugam, former Director of the Madras School of Economics and Economic Consultant to the Government of Tamil Nadu.
Over the five-year period (2021-22 to 2025-26), the State achieved an average growth rate of 9.07% annually, marking “a substantial improvement” of 3.86 percentage points over the previous five-year average of 5.21% (2016-17 to 2020-21), and 1.89 percentage points higher than the pre-COVID average growth of 7.18% (2014-15 to 2018-19), points out Dr. Shanmugam.
