Tamil Nadu’s growth story: strong gains, inclusion, and new challenges
Recent Nobel Prize-winning research has renewed attention on how institutions and social norms shape economic development. In India, caste and gender-based discrimination continues to influence economic outcomes; Tamil Nadu, though less affected than many regions, is cited as showing how social inclusion and growth can reinforce each other. Tamil Nadu has posted strong economic and social outcomes. With about 6% of India’s population, it contributed 9.21% to national GDP in 2023-24. RBI data show the State had the second-highest per capita NSDP (constant prices) among major States in 2024-25, while its real growth rate of 11.19% for 2024-25 was the highest among States and the best for Tamil Nadu in a decade.









