this is a great example of why some states prospes in india such as high education, low birth rates,healthcare among others.
also we ned some global news about how some areas of the world are prospering despite the trump temoper tantrum
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**New Delhi:** With its Gross State Domestic Product (GSDP) having more than doubled over the past decade, Tamil Nadu remains one of India’s strongest state economies.
According to the Reserve Bank of India’s Handbook of Statistics on Indian States 2024–25 released last week, the state’s GSDP—the monetary value of goods and services produced in a state—increased from about Rs 14.6 lakh crore in 2017–18 to Rs 31.18 lakh crore in 2024–25, finishing second behind Maharashtra.
But the state’s meteoric economic rise did not happen overnight. Successive governments—starting with the Indian National Congress in the 1950s, to the alternating DMK (Dravida Munnetra Kazhagam) and AIADMK (All India Anna Dravida Munnetra Kazhagam) governments focused on welfare schemes over the past few decades—set up a strong base.
“Up to the 1990s, the state focused on social parameters—education, health—while the Union government was focused on capital and investment,” said K. Jothi Sivagnanam, a professor of Economics at the University of Madras, explaining the state’s strong performance. “This ‘Dravidian Model’ gave Tamil Nadu a foundation to build on.”
Sivagnanam added that after the Indian economy was opened up in the early ’90s, Tamil Nadu was the prime destination for foreign investment. It had a skilled, educated labour force—many of whom were English speakers—that attracted companies to the region.
And the focus was never on just one industry, but rather a “cluster development” model—automobile components, textile, leather and granite industries all found a footing in the state. “If there is no software, there is no Bengaluru. But in Tamil Nadu, we are not dependent on one industry,” said Anand Sreenivasan, a Chennai-based investor who runs *Money Pechu*, an Economics-focused YouTube channel.
Royal Enfield, TVS Motors and Ashok Leyland all have factories in Tamil Nadu, which has become a hub for auto components. Near Vellore, the leather industry processes raw leather and makes finished goods. In November 2023, the Crocs factory at Perambalur footwear park was inaugurated.
“From the late 1950s, we have had a practice of setting up industrial estates. In 1958, Guindy Industrial Estate was one of the country’s first industrial areas,” said Sreenivasan, adding that the Tamil Nadu Small Industries Development Corporation (TANSIDCO) has been operational since 1970.
Gross State Value Added from manufacturing has steadily surged over the years, reinforcing the state’s position as a factory powerhouse. The figure increased 87 percent from Rs 2.81 lakh crore in 2017-18 to Rs 5.27 lakh crore in 2024-25.
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this is a great example of why some states prospes in india such as high education, low birth rates,healthcare among others.
also we ned some global news about how some areas of the world are prospering despite the trump temoper tantrum
**New Delhi:** With its Gross State Domestic Product (GSDP) having more than doubled over the past decade, Tamil Nadu remains one of India’s strongest state economies.
According to the Reserve Bank of India’s Handbook of Statistics on Indian States 2024–25 released last week, the state’s GSDP—the monetary value of goods and services produced in a state—increased from about Rs 14.6 lakh crore in 2017–18 to Rs 31.18 lakh crore in 2024–25, finishing second behind Maharashtra.
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But the state’s meteoric economic rise did not happen overnight. Successive governments—starting with the Indian National Congress in the 1950s, to the alternating DMK (Dravida Munnetra Kazhagam) and AIADMK (All India Anna Dravida Munnetra Kazhagam) governments focused on welfare schemes over the past few decades—set up a strong base.
“Up to the 1990s, the state focused on social parameters—education, health—while the Union government was focused on capital and investment,” said K. Jothi Sivagnanam, a professor of Economics at the University of Madras, explaining the state’s strong performance. “This ‘Dravidian Model’ gave Tamil Nadu a foundation to build on.”
Sivagnanam added that after the Indian economy was opened up in the early ’90s, Tamil Nadu was the prime destination for foreign investment. It had a skilled, educated labour force—many of whom were English speakers—that attracted companies to the region.
And the focus was never on just one industry, but rather a “cluster development” model—automobile components, textile, leather and granite industries all found a footing in the state. “If there is no software, there is no Bengaluru. But in Tamil Nadu, we are not dependent on one industry,” said Anand Sreenivasan, a Chennai-based investor who runs *Money Pechu*, an Economics-focused YouTube channel.
Royal Enfield, TVS Motors and Ashok Leyland all have factories in Tamil Nadu, which has become a hub for auto components. Near Vellore, the leather industry processes raw leather and makes finished goods. In November 2023, the Crocs factory at Perambalur footwear park was inaugurated.
“From the late 1950s, we have had a practice of setting up industrial estates. In 1958, Guindy Industrial Estate was one of the country’s first industrial areas,” said Sreenivasan, adding that the Tamil Nadu Small Industries Development Corporation (TANSIDCO) has been operational since 1970.
Gross State Value Added from manufacturing has steadily surged over the years, reinforcing the state’s position as a factory powerhouse. The figure increased 87 percent from Rs 2.81 lakh crore in 2017-18 to Rs 5.27 lakh crore in 2024-25.