State must focus on industries and urbanisation to meet potential, it says
Chennai, NFAPost: Tamil Nadu’s nominal gross state domestic product (GSDP) would grow to $2.6 trillion by Financial Year 2047-48 (FY48), said a report by real estate consultancy, reports Business Standard, calling for investments in industrialisation and urbanisation.
The report is published by Knight Frank India in association with the Confederation of Real Estate Developers’ Associations of India, Tamil Nadu.
Knight Frank India Chairman and Managing Director Shishir Baijal said since 2009 the state has grown at an average of 11% annually.
“According to our projections, 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,” said Knight Frank India Chairman and Managing Director Shishir Baijal.
Knight Frank India Chairman and Managing Director Shishir Baijal said Knight Frank estimate indicate that an additional capital investment of $111 billion from FY2025-48 is required. He said this investment will facilitate the envisioned economic growth across sectors including real estate.
Tamil Nadu is India’s second-largest state economy, contributing 8.8 per cent to the nation’s GDP. In FY23, the state’s GDP is estimated to have expanded to $294 billion. Over a 10-year period before Covid-19 (FY 2009-2019), Tamil Nadu’s economy grew at an annual rate of 11 per cent. At this pace of growth, when India celebrates its centenary of independence in 2048, Tamil Nadu’s GSDP is likely to expand to $2.6 trillion, said the report.
Agriculture, services and manufacturing play a crucial role in the state’s economy. The services sector contributes 53 per cent to the economic growth of Tamil Nadu.
The state’s growth ambitions will help Tier-II and Tier-III cities, accentuating the pace of urbanisation. This trend is expected to boost the construction sector comprising real estate and infrastructure development. As of FY 23, Tamil Nadu’s construction sector is estimated to be worth $32 billion and contributes 11 per cent to the state’s economy. The sector is poised to expand to $208 billion by FY48.
“The manufacturing sector, which accounts for 19 per cent of the state’s economy, is expected to expand to $ 374 billion (bn) by FY 2048. To cater to the expansion of the manufacturing sector in the state, there would be a requirement of 225,728 hectares (557,786 acres) of industrial land in Tamil Nadu. As of 2021, Tamil Nadu has 19,520 ha (48235 acres) of industrial land,” said the report.
