Tamil Nadu is often seen as one of India’s strongest economic performers, recording 7.4% growth in 2025-26, with manufacturing registering real growth rate of 14.74% in 2024-25, well above the national average. Real growth stood at 11.2%, among the highest for major states. Exports have nearly doubled in just four years, and incomes remain among the highest in India.

The state is now aiming for a one-trillion-dollar economy by 2030, backed by rising incomes, expanding infrastructure, and a welfare model it argues actually drives growth.

While unemployment levels have fallen, even as concerns persist around job quality, workforce participation, and potential disruption from automation and AI. There is also an ongoing debate over the fiscal sustainability and economic impact of welfare spending.

What is driving Tamil Nadu's growth, and where are the gaps? With Tamil Nadu heading to the polls, we take a deep dive into the state’s economy, its strengths, and the challenges that lie ahead.

Guest: J. Jeyaranjan, Vice Chairman of the State Planning Commission

Host: Nivedita V

Edited and produced by Sharmada Venkatasubramanian

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