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Tamil Nadu outperforms peers with growth in secondary sector at more than double the national average at 13.4% (at constant prices). At the overall GSDP level, Tamil Nadu consolidated its lead in year-on-year growth with its economy reaching ₹17.32 lakh crores in FY25, reflecting 11.2% annual growth. Even as India’s secondary sector (comprising manufacturing, construction, electricity and other utilities) grew at a modest 6.1% in FY25, several states recorded far higher growth with Tamil Nadu outperforming its peers. Tamil Nadu emerged as stand-out performer with growth in secondary sector at more than double the national average at 13.4% (at constant prices). Tamil Nadu has also managed to show the fastest growth in tertiary sector, which is made of trade, hotels, transport, real estate, financial services and other services.
Secondary sector output of Tamil Nadu jumped to ₹ 5.82 lakh crores in FY25 from ₹5.13 lakh crores in FY24, a strong 13.4% year-on-year growth, the highest among all large states. “Tamil Nadu has seen a fair bit of manufacturing activity in the recent years, especially in regions beyond Chennai, in a more diversified manner across the State. The electronics exports growth could be the biggest reason for overall GDP growth and growth in manufacturing,” says, Paras Jasrai, Associate Director, India Ratings and Research. Uttar Pradesh was next in secondary sector growth, with the sector expanding to ₹4.15 lakh crores, reflecting a 9.5% growth. Surprisingly, Maharashtra, which tops in manufacturing activity recorded a growth of only 5.1% in secondary sector in FY25. Karnataka (5.4%) and Telangana (3.7%) also reported slow growth numbers in manufacturing. Businessline analysis was done for the top 10 States on the basis of real GSDP as updated by Ministry of Statistics in August. The data for Gujarat was not available.
Tertiary sector growth:
Growth in service sector is again led by Tamil Nadu, with services output increasing from ₹7.19 lakh crores to ₹8.0 lakh crores, registering a robust 11.3% rise. Telangana is close behind with a 10.4% increase. Third on the list in reporting high growth in services is Uttar Pradesh (9.4%). Karnataka, Andhra Pradesh and Madhya Pradesh recorded services growth between 8% to 9%.
Overall GSDP:
At the overall GSDP level, Tamil Nadu consolidated its lead in year-on-year growth with its economy reaching ₹17.32 lakh crores in FY25, reflecting 11.2% annual growth. Maharashtra still leads in terms of overall GSDP.
Uttar Pradesh follows in terms of annual growth with ₹15.82 lakh crores and 9% annual growth, while Andhra Pradesh recorded ₹8.65 lakh crores (8.2%) and Telangana ₹8.35 lakh crores (8.1%). Rajasthan posted ₹9.06 lakh crores (7.8%), Karnataka ₹15.7 lakh crores (7.4%), Maharashtra ₹26.12 lakh crores (7.3%) and West Bengal ₹9.41 lakh crores (6.8%).
Source : https://www.thehindubusinessline.com/data-stories/data-focus/which-states-led-the-manufacturing-and-services-activity-in-fy25/article69960690.ece
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