Tamil Nadu is the fourth-largest state of India. It has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto components, engineering, pharmaceuticals, garments, textiles, leather, chemicals, plastics, etc. It ranks first among the states in terms of the number of factories and industrial workers.

Tamil Nadu Industrial Development Corporation Ltd (TIDCO), State Industries Promotion Corporation of Tamil Nadu (SIPCOT), Tamil Nadu Industrial Investment Corporation Limited (TIIC), and Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO) are jointly developing industrial infrastructure in the state.

At current prices, Tamil Nadu’s gross state domestic product (GSDP) is estimated to be Rs. 35.67 trillion (US$ 419.74 billion) in FY26. The state’s GSDP to increase at a CAGR of 11.84% between FY19 and FY26.

As of FY25, the state had a total installed power generation capacity of 42.77 GW.

Thermal power contributed 16,033.53 MW to the total installed power generation capacity, followed by renewable power (25,290.67 MW), hydropower (2178.20 MW) and nuclear power (1448.00 MW).

Private sector, with a capacity of 29,212.84 MW, was the biggest contributor to the total installed power generation capacity in Tamil Nadu, followed by state utilities 7,144.98 MW and central utilities 6,414.38 MW.

According to DPIIT, cumulative FDI inflow in Tamil Nadu stood at Rs. 3,83,095 crore (US$ 45.07 billion) between April 2000-December 2024. The state ranked 5th in India in terms of FDI inflows.

Total merchandise exports from the state stood at Rs. 3,91,850 crore (US$ 46.51 billion) billion in FY25 (until February 2025).

The state exported key items such as Engineering Goods, Electronic Goods, Ready-made garments of all textiles, Cotton Yarn/Fabs/Madeups, Handloom Products, Leather and Leather Manufactures, Petroleum Products, Organic and Inorganic Chemicals.

According to the Telecom Regulatory Authority of India (TRAI), Tamil Nadu had 77.40 million wireless and 3.18 million wireline subscribers, as of Dec 2024.

Tamil Nadu had a high tele-density of 102.02%, as of Dec 2024.

Some of the major initiatives taken by the Government to promote Tamil Nadu as an investment destination are:

• Budget allocations for FY26
  • Rs. 18,456 crore (US$ 2.17 billion) has been designated for capital expenditure on roads and bridges.
  • Rs. 7,546 crore (US$ 887.8 million) has been designated towards power subsidy for domestic consumers.
  • Rs. 2,000 crore (US$ 235.3 million) has been made for the implementation of the Kalaignar Nagarpura Membattu Thittam, along with Rs. 850 crore (US$ 100.0 million) designated for the Singara Chennai 2.0 scheme.
  • Rs. 13,974 crore (US$ 1.64 billion) has been allocated for government secondary schools and Rs. 14,328 crore (US$ 1.69 billion) for government primary schools.
  • Rs. 5,926 crore (US$ 697.2 million) allocated towards allopathic urban health services.
• SIPCOT (State Industries Promotion Corporation of Tamil Nadu Limited) will develop an Integrated Textile Park, spanning 111 Acres in Salem district with an estimated investment of Rs. 800 Crore (US$ 96.62 million).
• A 3-storey industrial complex, spanning 5 Acres will be developed at Sakkimangalam Industrial Estate in Madurai district by TANSIDCO (Tamil Nadu Small Industries Development Corporation Limited) at Rs. 118 Crore (US$ 14.25 million).
• On November 10, the Vande Bharat Express will make its debut in South India on the route connecting the capitals of Tamil Nadu and Karnataka (Chennai-Mysuru via Bengaluru).
• On October 20, 2022, the Tamil Nadu School education department conducted counselling sessions for the students who are yet to join higher education courses, including those who failed their Class 12 exams.
• In May 2022, Acme Solar Holdings Ltd announced that it was planning to set up an integrated seven gigawatt (GW) renewable energy and green ammonia production facility in Tamil Nadu at an estimated cost of about US$ 6 billion.
• In May 2022, Southern Railway announced that it will set up solar power plants at 18 stations in northern Tamil Nadu to reduce emissions.
• In May 2022, Mr. M Madhiventhan, the State Tourism Minister, made a bunch of tourism-related announcements:
  • Construction of a ‘Spiritual and Cultural Eco-park’ on the East Coast Road, in collaboration with the Department of Hindu Religious and Charitable Endowments Department (HR and CE), at a cost of Rs. 1.5 crore (US$ 193,362).
  • Every year, in partnership with the state horticulture department, a summer festival including flower, fruit, vegetable, and palm goods exhibition and show would be held in Chennai at a cost of Rs. 25 lakh (US$ 32,227).
  • In Chengalpattu, the Poondi reservoir and the Kolavai Lake will be developed as a tourist destination with activities including as water sports, boat rides, adventure activities, and bird watching decks.