Tamil Nadu ranks next only to Maharashtra in terms of contribution of the manufacturing sector to the net state domestic product (NSDP). The state is a leading cement manufacturer in the country, ranking fourth in cement production. The chemicals industry is a prominent industry in the state of Tamil Nadu and is mainly situated in Manali, Cuddalore, Panangudi (Nagapattinam) and Tuticorin. Chennai is fast emerging as a major export hub for cars to south-east Asia. The share of Tamil Nadu in the Indian automotive industry is 30 per cent. Exports of engineering products from Tamil Nadu were worth around US$ 320 million in 2007.

The state's gross domestic product (GDP) grew an impressive 10.69 per cent between 1999-2000 and 2006-07 to reach US$ 58.63 billion. The per capita income of Tamil Nadu was US$ 664.9 in 2004-05, which is higher than the all-India average of US$ 514.2. The state’s GDP grew by an impressive 12.2 per cent between 1999-2000 and 2007-08 to reach US$ 72.2 billion. The per capita income of Tamil Nadu was US$ 1,271.1 in 2008–09. Within the primary sector, agriculture and allied activities registered the highest growth. Tamil Nadu is known as the “yarn bowl” of the country and accounts for 47 per cent of the country‘s spinning capacity and nearly 60 per cent of yarn exports. Chennai is known for the export of woven garments with about 2,400 registered exporters.

The share of the tertiary sector in the gross state domestic product (GSDP) was 55.3 per cent in 2007-08. Trade and hotels and restaurants, the largest sub-group of the sector, registered a growth of 11.9 per cent over the previous year. Tamil Nadu is an important information technology (IT) hub and Chennai is the second-leading software exporter in India, after Bangalore. Chennai is the financial hub of south India and major Indian financial institutions and foreign banks have a strong presence there. Outstanding investments in the state during the December 2008 quarter were US$ 121.1 billion.

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