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Article Economic Survey 2024-25: Deregulation, investment and innovation for a Viksit BharatIndia's economic growth remains for a steady trajectory with real GDP expected to grow at 6.4% in FY25 and in the range of 6.3%-6.8% in FY26, reflecting resilience despite global uncertainties.
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Article Navigating market volatility and government support for Indian agricultureIndia's agricultural sector, the backbone of the nation's economy, contributes ~17% to the GDP and employs over half of the workforce.
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Article Improving credit penetration in BiharRBI’s priority sector lending guidelines have a key role to play in providing credit to small farmers, artisans and micro firms
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Article Sustainable farming and its economic imperativeSustainable farming in India is crucial for food security, economic growth, and environmental conservation, requiring government support and farmer education.
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Tamil Nadu, the second-largest state in India, boasts a significant contribution to the country's economy, accounting for approximately 9.6% of its GDP. As of the fiscal year 2022-23, the state's per capita income has reached USD 3408.7. Tamil Nadu has received a noteworthy influx of FDI, totaling USD 7 billion between 2019 and 2022. With ambitious mobilisation targets set at INR 23 trillion and export targets four times higher, the state aims to attain the status of a USD 1 trillion economy by 2030.
Our report 'Tamil Nadu: Towards a trillion-dollar economy by 2030' outlines solutions for investment-led growth, focusing on agriculture, credit, infrastructure, and skill development. The report proposes various interventions to enhance entrepreneurship, trade, technology, and the digital ecosystem, to bolster business in the state.
Key highlights of the report/publication
- Enabling policy environment: Tamil Nadu can help India become the ‘factory of the world’. The state should focus on financial investment and trade policies, raw materials, skilled manpower, infrastructure and market connectivity.
- Shaping the trillion dollar workforce: As per the 'Skill Gap Assessment and Action Plan for Tamil Nadu, 2019', the state is estimated to require 32.78 lakh skilled and semi-skilled workers by 2025. Bridging this gap will require a collective effort from government, industry, and education providers.
- Credit ecosystem: Banks must ensure that credit lending increases and procedures are smoothened through digital interventions. The RBI should encourage the development of an ecosystem that promotes fintech companies and green bonds.
- Logistics and infrastructure: Tamil Nadu excels in warehousing capacity, container freight stations, and transport efficiency. There is , however, room for improvement in rail connectivity, inland waterways utilisation, and logistics infrastructure.
- Procurement and inputs: The state should promote MSME-led raw material banks to optimise costs and increase competitiveness for input procurement in clusters.
- Emerging sectors: High-tech electronics, semiconductors, biotechnology, and defense are poised to be the growth engine of Tamil Nadu's economy, propelling the state to a trillion dollar mark while ensuring sustainability.
- Strategic options: The state can boost agriculture, industry, and services growth through strategic initiatives. It can also adapt to evolving competitive factors and demand conditions by skilling its workforce.