Tamil Nadu requires investments worth Rs 9.23 lakh cr to reach GSDP of $2.6 tn by 2047: Report

The services sector has been identified as the primary driver of Tamil Nadu's economy, accounting for 53 per cent of the total gross state domestic product, according to the study.

Chennai: Tamil Nadu would require investments of Rs 9.23 lakh crore for the state's economy to reach $2.6 trillion by 2047, a study conducted by global real estate consultancy Knight Frank India said on Monday.

The services sector has been identified as the primary driver of Tamil Nadu's economy, accounting for 53 per cent of the total gross state domestic product (GSDP), according to the study.

The Knight-Frank India - Confederation of Real Estate Developers' Associations of India (CREDAI) Tamil Nadu report indicates an estimated expansion of Tamil Nadu's nominal GSDP to approximately $2.6 trillion by 2047-48.

The report was released at the CREDAI STATECON 2025 event held in the city.

Agriculture, manufacturing, and other sectors play crucial roles in propelling the state's economy. Presently, the services sector is the main catalyst, contributing 53 per cent to Tamil Nadu's overall economic growth, it said.

With growth ambitions extending economic activities to Tier II and III locations, the construction sector's size is projected to increase from $32 billion in FY2022-23 to $208 billion by 2047-48, the report noted.

The manufacturing sector is expected to reach $374 billion by FY 2047-48, with a growth rate of 19 per cent, according to the report. To support this expansion, the report highlights a need for 2,25,728 hectares of industrial land in Tamil Nadu.

Knight Frank India Chairman and Managing Director Shishir Baijal emphasised the importance of investing in industrialisation and urbanisation.

Remarking that Tamil Nadu's economic structure is 'well-balanced across primary, secondary, and tertiary sectors, fostering stable growth', he expressed confidence that this trend would continue 'primarily because the state does not rely solely on a single industry for development'.

Since 2009, the state has grown at an average of 11 per cent annually, he said.

"Tamil Nadu has the potential to reach a GSDP of $2.6 trillion by 2047. To realise this potential, the state must strategically invest in industrialisation and urbanisation. Our estimates indicate that an additional capital investment of $111 billion from FY2025-2048 is required. This investment will facilitate the envisioned economic growth across sectors," he said.

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