In 2025 Tamil Nadu saw double digit growth, steady strides in industrialisation efforts

Chennai: Known for its vibrant industrial ecosystem, Tamil Nadu continued to make steady strides in the sector in 2025, witnessing record IT exports, besides focusing on aerospace with new investment proposals and marching into 2026 with a double digit growth.

Ford's re-entry in to the state brought cheers, even as fears have emerged in the hosiery hub Tirupur following the revised US tariffs aimed at Indian imports into that country.

Touching an all time high, the state clocked a 11.19 per cent growth rate, which Chief Minister M K Stalin attributed to the sustained economic policies of the DMK government that assumed office in 2021.

According to industry department officials, TN had previously recorded its highest growth rate of 9.69 per cent during the 2010-11 financial year when the late DMK patriarch M Karunanidhi was the CM.

"We are not saying this. As per the Union ministry of statistics and programme implementation's revised estimates, during 2024-25, Tamil Nadu has achieved 11.19 per cent growth," Stalin said.

In 2025, US-based car maker Ford Motor Company decided to invest Rs 3,250 crore for production of new generation engines at the factory in Maraimalai Nagar, near Chennai.

The company had in 2021 announced ceasing of manufacturing vehicles in India and exited the market. It included the TN factory spread over 400 acres in Maraimalai Nagar, located about 45 km south of Chennai.

In 2024, the company had submitted a Letter of Intent (LoI) to the Government of Tamil Nadu confirming its intention to use Chennai factory for manufacturing of engines.

The proposed investment would create 600 direct jobs and build on Tamil Nadu's robust automobile ancillary ecosystem, Stalin had said.

Tamil Nadu also witnessed a significant development during the year with the State recording a 'historic high' of USD 14.65 billion in electronics exports for FY 2024-25 which was up by 53 per cent over the previous year.

In the previous financial year (2023-24) Tamil Nadu has recorded USD 9.56 billion in exports of electronics.

Industry department sources said the latest exports number accounts for 41.23 per cent of India's total shipment of electronics.

In August 2025, as per the centre's Annual Survey of Industries 2023-24, Tamil Nadu ranked top in industrial employment with 15.24 per cent of all factory workers in India. The state has the highest number of factories at 40,100 units.

The government has also been focusing on all-inclusive, equitable growth.

To boost the industrial growth across the state, the government conducted the region specific 'Rising Investor's Conclave' in August and November.

Such conferences were conducted in Coimbatore, Tuticorin to boost investments. At the Coimbatore edition in November, the state government signed 158 memoranda of understanding totalling investments of Rs 43,844 crore which would create over one lakh jobs.

At the Tuticorin conclave, Tamil Nadu secured over Rs 32,000 crore worth of investments by signing 41 MoUs for new projects which focused on sectors like renewable energy, shipbuilding.

At the maiden edition of AeroDefCon 2025 in October, TN secured Rs 23,000 crore investments in aerospace and defence with a target of Rs 75,000 crore by 2032 in the sector.

The US government's decision to levy 50 per cent tariff on Indian exports particularly affected Tirupur in the state.

Dubbed as the knitwear capital of India, exporters in Tirupur have reported a loss of Rs 15,000 crore in orders along with production cuts of up to 30 per cent across units. Job losses added to the concerns.

Stalin had urged the Prime Minister Narendra Modi to prioritise resolution of tariff issue through bilateral agreements with the US government.

The textile and apparel exports from Tamil Nadu contribute 28 per cent to the country's total textile exports and employs about 75 lakh people.