Chennai, Jan 31:
In its latest report – Tamil Nadu: Unveiling Economic Dynamism and Future Potential, by 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) would expand 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.
The state’s growth ambitions are set to drive the need for expanding economic activities into tier 2 and 3 cities of Tamil Nadu, accentuating the pace of urbanization. This trend is expected to significantly boost the construction sector, encompassing real estate and infrastructure development. 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.
The manufacturing sector, which accounts for 19% of the state’s economy, is expected to expand to US$ 374 billion (bn) by FY 2048. To cater to the expansion of the manufacturing sector in the state, there would be a requirement of 2,25,728 hectares (557786 acres) of industrial land in Tamil Nadu. As of 2021, Tamil Nadu has 19,520 ha (48235 acres) of industrial land.
