Chennai, May 4 -- For years, Tamil Nadu has punched beyond its weight. With just 4% of India's land area and 6% of its population, the state's contribution to the country's gross domestic product (GDP) in 2024-25 was 9.4%.

The state's economy is growing much faster than India's 6.5%. Even as foreign direct investment (FDI) into India has slowed, foreign investors continue to bet big on Tamil Nadu. FDI into the state has seen a sharp increase of 54% in 2024-25.

The state has managed to balance development and welfare. Its social sector spending has risen by 40% in the last five years. Its position has improved in key health and social parameters. The state has one of the lowest levels of multidimensional poverty, and its per capita incom...