J. Jeyaranjan, Executive Vice Chairman, State Planning Commission (SPC), on Thursday said that the first-ever economic survey of Tamil Nadu — Economic Survey of Tamil Nadu 2024-25 — did not make exact growth projections for the coming years owing to various uncertainties.
“There are uncertainties due to factors such as climate change and [artificial intelligence] AI. Nobody is sure of AI’s impact. We can make growth projections when the environment is stable,” he said at a press conference here.
Tamil Nadu faces several challenges in the medium-term. Technological disruptions could displace traditional jobs in industrial and services sectors, necessitating urgent reskilling, the survey said. The State faces several critical challenges in the medium term. Technological disruptions, particularly in AI and automation, could displace traditional jobs in the industrial and services sectors, necessitating urgent reskilling initiatives, it said.
“Tamil Nadu is a key export hub for automobiles and textiles. Global factors such as trade war will impact the economy,” he said, adding that one of the suggestions made in the report was for the State to aim at becoming a knowledge economy while focusing on manufacturing.
To a question on the State’s debt, Mr. Jeyaranjan said it was well within the prescribed limits. Tamil Nadu is currently benefiting from a demographic advantage, with its working-age population at its peak. However, unlike many other States experiencing rapid labor force growth, Tamil Nadu is expected to see a gradual decline in its working-age population from 66.4% in 2021 to 63.6% by 2036. While this demographic shift may reduce labor market pressures, it also necessitates urgent measures to enhance productivity through skill development and technology adoption, the survey said.
To fully leverage the demographic dividend, Tamil Nadu must focus on enhancing employment-linked skilling programs, strengthening the gig and digital economy, and promoting high-value industries that can absorb a technologically advanced workforce, it said.
Tamil Nadu leads in organised manufacturing, contributing significantly to India’s industrial employment and exports. The state is well-positioned to benefit from India’s manufacturing expansion and global supply chain realignments, the survey said.
He further said that the medium-term growth outlook in the survey had flagged challenges, and hoped that the State would address them.
Published – March 14, 2025 12:48 am IST
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