CHENNAI: Tamil Nadu has posted the fastest nominal economic expansion among India’s large states, with new Reserve Bank of India statistics confirming both its accelerating growth momentum and its widening lead over regional peers.

According to the Handbook of Statistics on Indian States 2024–25, released on Thursday, Tamil Nadu’s Gross State Domestic Product (GSDP) at current prices rose to ₹31.19 lakh crore in 2024–25, up from ₹26.89 lakh crore the previous year — a nominal increase of 16 per cent. This is the sharpest rise among major state economies and marks the third consecutive year in which Tamil Nadu has grown faster than most of its industrial peers.

The RBI data reaffirm Maharashtra’s position as India’s largest state economy at ₹45.31 lakh crore, followed by Tamil Nadu (₹31.18 lakh crore), Uttar Pradesh (₹29.78 lakh crore), Karnataka (₹28.83 lakh crore) and Gujarat (₹26.72 lakh crore). Tamil Nadu’s expansion has enabled it to widen its lead over Uttar Pradesh by about ₹1.4 lakh crore and over Karnataka by approximately ₹2.35 lakh crore.

The multi-year trajectory underscores a shift in economic weight among India’s leading states.

Between 2021–22 and 2024–25, Tamil Nadu’s GSDP rose from ₹20.72 lakh crore to ₹31.18 lakh crore — an increase of nearly ₹10.5 lakh crore. Gujarat and Karnataka expanded on a comparable scale, but both trailed Tamil Nadu’s pace in 2023–24 and 2024–25. Maharashtra grew from ₹31.4 lakh crore to ₹45.3 lakh crore over the same period, but at lower annual growth rates than Tamil Nadu’s latest 16 per cent surge.

Growth-rate comparisons further highlight Tamil Nadu’s standout performance. While nominal expansion in Maharashtra, Karnataka and Gujarat remained in the 10–13 per cent range in 2024–25, Tamil Nadu alone crossed the 16 per cent mark. Uttar Pradesh reported 12.7 per cent.

The state’s per capita GSDP has also strengthened markedly, rising from ₹2.42 lakh in 2021–22 to an estimated ₹3.62 lakh in 2024–25 — placing Tamil Nadu second among major states, just behind Karnataka. By contrast, per capita GSDP in Maharashtra stands at ₹3.09 lakh, in Gujarat at ₹3.31 lakh and in Uttar Pradesh at ₹1.08 lakh. The widening gap with the country’s most populous state reflects diverging labour productivity and industrial depth.

Industries Minister T R B Rajaa said the figures demonstrate Tamil Nadu’s ability to sustain high growth while rolling out some of India’s most extensive welfare programmes. Critics often characterise these schemes as “freebies”, but Rajaa argued that the data indicate they have boosted workforce participation and supported consumption, functioning as “economic enablers”.

Rajaa attributes the state’s economic momentum to continued industrial diversification, infrastructure investment and a policy emphasis on skilling and social inclusion — elements the administration describes as the “Dravidian development model”. Tamil Nadu has historically prioritised reducing regional disparities, and the broad-based rise in per capita incomes appears consistent with that approach.

The state remains strong across manufacturing, renewables, electronics and global capability centres, reinforcing its reputation as a predictable and professionally run investment destination. Rajaa said the current performance lays the groundwork for what he described as a more accelerated phase of growth over the next five years.

Factfile:

• Tamil Nadu posts 16% nominal GSDP growth in 2024–25 — the highest among major states.

• GSDP rises to ₹31.19 lakh crore, widening its lead over Uttar Pradesh by ₹1.4 lakh crore and over Karnataka by ₹2.35 lakh crore.

• Per capita GSDP climbs to ₹3.62 lakh, second only to Karnataka among large states.

• Tamil Nadu adds ₹10.5 lakh crore to its economy in three years (2021–22 to 2024–25), outpacing most industrial peers.