The economic and social development of states in India are not uniform. The western region and southern regions are better off than the other regions. Tamil Nadu is geographically eleventh largest and population wise third largest. Tamil Nadu fares well with many achievements. It stands second to second in terms of contribution to GDP, third highest in terms of capita income, investment, Foreign Direct Investment (FDI) and industrial output. It has been ranked as the most economically free state by the Economic Freedom.

In social and health sector also Tamil Nadu’s performance is better than many other states and better than national average in terms of health, higher education, IMR and MMR.


Some of the states like Gujarat and Maharashtra seem to perform well in some of the economic indicators. Kerala tops in literacy, IMR and MMR. In recent years Tanil Nadu’s performance is outstanding and far ahead of all other states in the spheres of health, higher education, growth of MSMEs, poverty alleviation and employment generation. The reason for the relative success of Tamil Nadu lie in extending social policies to cover most of the population. For instance the publisher distribution system, midday meals and public health infrastructure have near universal coverage.


The per capita GSDP of Tamil Nadu also ($ 2,200) which is higher than that of many other states in India. Per capita GSDP of Tamil Nadu is nearly 1.75 times higher than the national average, as per 2018 data. In term of the per capita income in Tamil Nadu was 1,03,600 in 2010-11 and it has increased to 1,88,492 in 2017-18 as per the budget figures 2018.

HIGHLIGHTS OF TAMIL NADU ECONOMY: Growth of SGDP in Tamil Nadu has been among the fastest in India since 2005. Poverty reduction in Tamil Nadu has been faster than that in many other states. Tamil Nadu contains a smaller proportion of India’s poor population. Tamil Nadu is the second largest contributeor to India’s GDP. Tamil Nadu ranks 3rd in terms of invested capital (2.29 lakh crore ) and value of total industrial output (6.19 lakh crore). Tamil Nadu ranks first among the states in terms of numbers of factories with 17% share and industrial workers of the country. Tamil Nadu is placed third in health index as per the NITI AAYOG report. Tamil Nadu has a highest Gross Enrolment Ratio in higher education. Tamil Nadu has the largest number of engineering colleges. Tamil Nadu has emerged as a major hub for renewable energy. Tamil Nadu has highest credit Deposit Ratio in Commercial and cooperative banks. It has the highest ranks first on investment proposal filed by MSMEs.

“If the nature of the work is properly appreciated and applied, it will stand in the same relation to the higher facilities as food is to the physical body”

-J.C. Kumarappa

Tamil Nadu state has come third after Kerala and Punjab in a health index report. The neo natal mortality rate is 14 lower than that of many other states and that the under 5 mortality has dropped from 21 in 2014 to 20 in 2015.

The Tamil Nadu economy which is not rich in natural resources has good record of agricultural growth, industrial progress, infrastructural development and good record of strong growth of service sector especially banking, education, transport and tourism. It occupies top three ranks in health index, education, development of MSMEs. It has good record of poverty allevation and employment generation. India in general and Tamil Nadu in particular need to work to eliminate female foeticide,reduce the population lying in slums, sleeping on roadsides, beggers and rag picker. Development is meaningless as long as the eyesore continues.

Categories: Economy, Education

Tagged as: