Economy of Tamil Nadu

Tamil Nadu's Economy

            Tamil Nadu's gross state domestic product for 2006 is estimated at 250,000 crores (64 billion USD) in current prices. The state experienced a GDP growth rate of 12.1% for this period. Possessing the third largest economy (2004-2005) among states in India, Tamil Nadu is also the second most industrialised state next to Maharastra. The per capita income for the period 2004 - 2005 for the state was Rs.25,965 ranking second among the South Indian states. It ranks third in foreign direct investment approvals (cumulative 1991-2002) of Rs.225,826 million ($5,000 million), next only to Maharashtra (Rs.366,024 million ($8,100 million)) and Delhi (Rs.303,038 million ($6,700 million)and the State's FDI investment constitutes 9.12% of the total FDI in the country. Tamil Nadu was the winner of Dimagazine's Asian Region of the Future award 2005/06 in terms of FDIs, surpassing Australia's New South Wales. Unlike many other states, the economic resources are quite spread out, rather than concentrated in a small industrialised area.

According to the 2001 Census, Tamil Nadu has the highest level of urbanisation (43.86%) in India, accounting for 6% of India’s total population and 9.6% of the urban population. and is the second most industrialised state in India. Services contributes to 45% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 21%. Government is the major investor in the state with 51% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. Tamil Nadu has a network of about 110 industrial parks and estates offering developed plots with supporting infrastructure. Also, the state government is promoting other industrial parks like Rubber Park, Apparel Parks, Floriculture Park, TICEL Park for Biotechnology, Siruseri IT Park, and Agro Export Zones among others.

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