Tamil Nadu’s economic growth has increased to about 8% at constant prices in the post-COVID-19 years of 2021-22 and 2022-23, according to data collated by the State’s Department of Economics and Statistics, in consultation with the State Planning Commission.
The economic growth in real terms was fluctuating in pre-COVID-19 years since 2011-12, with an average growth of 5.80%, it said. The estimations of the Gross State Domestic Product (GSDP) in current and constant prices are as per the methodology approved by the Ministry of Statistics and Programme Implementation, Government of India.
As per the collated data available with The Hindu, Tamil Nadu’s GSDP was ₹14,53,321 crore at constant prices and ₹23,64,514 crore at current prices in 2022-23. It’s GSDP growth in 2022-23 was 8.19% at constant prices and 14.16% at current prices. For the same period, India’s GDP growth was 7.24% at constant prices and 16.06% at current prices.
For the period 2022-23, relative ranks could not be estimated as the GSDP of most of the other States have not been released, the analysis noted.
Tamil Nadu’s GSDP was ₹13,43,287 crore at constant prices and ₹20,71,286 crore at current prices in 2021-22. It grew at 7.92% at constant prices and 15.84% at current prices in the period. India’s GDP growth was 9.05% at constant prices and 18.36% at current prices in 2021-22. The country witnessed a negative growth rate in the COVID-19 year of 2020-21 and a higher growth rate in 2021-22, the analysis noted.
In 2021-22, Tamil Nadu was ranked second in GSDP at current prices after Maharashtra, and third in GSDP at constant prices after Maharashtra and Gujarat. Tamil Nadu’s GSDP grew at 7.01% in 2018-19 and 3.25% in 2019-20 at constant prices. The data also showed that the State’s inflation was lower than the national average for 2021-22 and 2022-23.
Tamil Nadu’s inflation index value was 7.92 in 2021-22 and 5.97 in 2022-23, compared to all-India values of 9.31 and 8.82 in 2021-22 and 2022-23. It also fared better in per capita income, which stood at ₹1,54,557 in 2021-22 and ₹1,66,727 in 2022-23, compared to India’s figures of ₹92,583 in 2021-22 and ₹98,374 in 2022-23 at constant prices.
Sector-wise share
The economic activity is divided among the primary, secondary and tertiary sectors, which correspond to agriculture, industry and services sector. The contributions of the primary sector, including agriculture and livestock, to Tamil Nadu’s GSDP stood at 12.18% in 2021-22 and 11.73% in 2022-23 at constant prices, and those of the secondary sector was 36.88% in 2021-22 and 37.36% in 2022-23.
Manufacturing sub-sector contributes a major share (nearly 59%) in the secondary sector. The growth of this sector has gained momentum during 2021-22 and 2022-23, at an estimate of 9.74% and 10.40% respectively in real terms, the analysis said.
The contribution of the services sector was 50.94% in 2021-22 and 50.92% in 2022-23.
The structure of Tamil Nadu’s economy is broadly similar to that of the national economy, and the share of the three broad sectors in it has followed the pattern that is seen at the national level over the years, according to ratings firm India Ratings and Research.
The share of industry in the State’s economy remained largely stable at 36%-37% over FY12-FY23. The services sector was the key growth driver, it said. Tamil Nadu was among the handful of State economies to have witnessed a positive GSDP growth of 0.1% during the COVID-19-impacted FY21, compared to the all-India negative number of 5.8%. The State’s economy bounced back, growing by over 8% in FY23, India Ratings said.
Chief Minister M.K. Stalin has set a target of making the State a $1-trillion economy by 2030. Assuming Tamil Nadu can sustain its current average of 10% growth, it is expected to reach the benchmark by FY2034. However, to achieve this milestone by FY2031, the State will need to grow at an average of 16.5%, said a Deloitte-Federation of India Chambers of Commerce and Industry report.
