CHENNAI: Tamil Nadu’s second economic survey 2025-2026 attributes the state’s economic momentum to targeted investments, stronger industrial infrastructure and policies aimed at consolidating its position as a national manufacturing hub. Tamil Nadu posted a growth rate of 11.3%, the highest among major states, and increased social sector spending by over Rs 44,500 crore in the last four years from Rs 1.13 lakh crore in 2021‑22 to Rs 1.57 lakh crore in 2025‑26.Electronics, electric mobility, precision manufacturing and textiles remain among the fastest‑expanding sectors, contributing significantly to output and exports. Electronics manufacturing has grown sharply on the back of large investments and supply‑chain consolidation within the state. TN’s labour force participation rate increased from 7.5% in 2021-2022 to 72.1% in 2023-2024, while India’s LFPR rose from 66.2% to 71.3% over the same period. The state’s unemployment rate declined from 5.1% to 3.5%, compared to a decline from 4 to 3.2% at the national level.The survey, built around assessments across 10 key sectors including agriculture, industry, environment and climate change, maps the state’s economic performance over the last five years. “We have prepared the survey report based on the position papers submitted by domain experts,” said TN state planning commission vice‑chairperson J Jeyaranjan.The survey notes that flagship programmes such as Naan Mudhalvan, Pudhumai Penn, Tamizh Pudhalvan, the CM’s Breakfast Scheme, Kalaignar Magalir Urimai Thittam and large‑scale housing and urban renewal initiatives have expanded human and social capabilities across districts.Even as it highlights broad‑based growth, the survey flags a structural gap that requires policy intervention: women’s labour force participation. Despite improvements in social indicators, the share of women in the workforce remains below the state’s economic potential. “We have given certain suggestions to the government on this,” Jeyaranjan said.The survey urges a women‑centric labour framework, recommending steps to remove institutional and logistical barriers. These include wider access to childcare, improved housing and transport systems for working women, and sector‑specific job pathways in emerging industries. Boosting women’s participation, it notes, will be essential to sustaining growth over the coming decade.
