Tamil Nadu, which is the second-largest State economy, has sustained a high-growth trajectory, recording a real Gross State Domestic Product (GSDP) growth of 10.83% in 2025-26, following 11.19% in 2024-25. This places the State well above the national average of 7.4% and marks two consecutive years of double-digit growth. This performance highlights the State’s strong policy framework, and structural strengths, positioning it as a leading contributor to India’s growth.

Over the medium term, Tamil Nadu’s growth acceleration has been notable. It recorded an average real growth of 9.07% from 2021-22 to 2025-25, compared to 5.21% from 2016-17 to 2020-21, and 7.18% during the pre-COVID period. This suggests a strong post-pandemic recovery supported by targeted fiscal measures and industrial policy. Nominal GSDP expanded from ₹31.19 lakh crore in 2024-25 to ₹35.29 lakh crore in 2025-26, registering a 13.16% growth, which is the highest among States.