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Tamil Nadu's Economic Growth

Jul 23, 2025

Overview

This article reports that Tamil Nadu has achieved the second-highest per capita net state domestic product (NSDP) in India, attributed to effective welfare programs and administration.

Tamil Nadu's Economic Achievement

  • Tamil Nadu ranks second in per capita net state domestic product in India, as announced by the Union Ministry of Statistics and Programme Implementation.
  • The state's strong economic performance is linked to welfare programs implemented since 2021.
  • Developmental milestones achieved since 2021 have been highlighted as key to this economic progress.

National and State Income Figures

  • The per capita net national income (NNI) at constant prices for 2024-25 is ₹1,14,710.
  • Tamil Nadu’s per capita NSDP for the same period stands at ₹1,96,309.
  • These figures are based on provisional estimates from the National Statistical Office.

Factors Contributing to Tamil Nadu's Performance

  • Despite limited new welfare programs and insufficient central funding, Tamil Nadu has maintained economic growth.
  • The state's performance is credited to efficient administration and the leadership of Chief Minister M.K. Stalin.
  • Visionary welfare schemes are highlighted as a major driver of economic achievements.

Key Terms & Definitions

  • Per capita net state domestic product (NSDP) — The average income earned per person in a state, after accounting for depreciation.
  • Net national income (NNI) — The total income of a nation’s residents, after accounting for depreciation, divided by the population.
  • Constant prices — Economic values adjusted for inflation, reflecting real purchasing power.

Action Items / Next Steps

  • Review figures for per capita income at both national and state levels.
  • Study the role of welfare programs and governance in economic development.