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Tamil Nadu has the potential to reach a GSDP of US$ 2.6 trillion by 2047

Tamil Nadu has the potential to reach a GSDP of US$ 2.6 trillion by 2047

In its latest report Tamil Nadu: Unveiling Economic Dynamism and Future Potentialby Knight Frank India, a leading real estate consultancy in the country, in association with the Confederation of Real Estate Developers' Associations of India (CREDAI)- Tamil Nadu, has estimated that Tamil Nadu’s Nominal Gross State Domestic Product (GSDP) wouldexpand to approximately US$ 2.6 trillion by FY 2047-48.

Tamil Nadu stands as the second-largest state economy in India, contributing 8.8% to the nation’s GDP. In FY 2023, the state GDP is estimated to have expanded to USD 294 bn. Over the 10-year period before the onset of the COVID-19 pandemic (FY 2009-2019), Tamil Nadu’s economy experienced an average annual growth rate of 11%. At this pace of growth, FY 2047-48, when India attains its centenary of independence, Tamil Nadu’s Gross State Domestic Product (GSDP) is likely to expand to USD 2.6 tn, resulting in the state being one of the key contributors to India’s overall economy.

Agriculture, services, manufacturing, and others play crucial roles in driving the state’s economic prosperity. Presently, the services sector stands out as the primary catalyst, contributing 53% to the overall economic growth of Tamil Nadu.As of FY 2022-23, the size of Tamil Nadu’s construction sector is estimated to be USD 32 bn, contributing 11% to the state’s overall economy. Projected at the current growth rate, this sector is poised to expand to USD 208bn by FY 2047-48.

ShishirBaijal, Chairman and Managing Director, Knight Frank India, expressed, "According to our projections, Tamil Nadu has the potential to reach a GSDP of US$ 2.6 trillion by 2047. To realize this potential, the state must strategically invest in industrialisation and urbanisation. Our estimates indicate that an additional capital investment of USD 111 billion from FY 2025-48 is required. This investment will facilitate the envisioned economic growth across sectors including real estate."

Mr.Habib W.S, Chairman, STATECON 2024, said “In the dynamic landscape of Tamil Nadu's development, the STATECON conference takes centre stage, embracing the theme "Conservatism to Cosmopolitanism." Following the Global Investor's Meet, this gathering aspires to catalyse the state's progress..”

SrinivasAnikipatti- Senior Director - Tamil Nadu & Kerala, Knight Frank India, said, “Tamil Nadu stands at the forefront of India's economic resurgence, strategically positioned to capitalise on a confluence of positive factors.The state's commitment to digital transformation aligns seamlessly with India's broader technological shift, fostering growth in the IT sector and expected to be at the front-runner in harnessing India’s manufacturing prowess.”

Through well-devised strategies and collaborative efforts, the state stands a significantchance to enhance its tourism sector, ultimately resulting in higher state revenue and fostering economic growth.For Tamil Nadu to realise its ambitious target of achieving a USD 1 trn economy by 2030, a strategic imperative lies in the introduction of a targeted retail-focused policy. While the state has successfully implemented sectorial policies that have catalysed growth in specific industries, a dedicated retail development policy is essential to unlock the full economic potential.