As polls near, how is Tamil Nadu's economy doing?

This episode of InFocus by The Hindu explores Tamil Nadu's economic resilience and transformation ahead of the state elections, featuring J.J. Ranjan, Executive Vice Chairman of the State Planning Commission. The discussion reveals that Tamil Nadu's economy grew at 11.3% in the last fiscal year, driven by a robust industrial base—particularly in manufacturing, electronics, and automotive sectors—supported by the 'China plus one' global supply chain shift. The state has attracted significant foreign and domestic investments, including major projects in solar energy, electric vehicles, and shipbuilding. Despite challenges from the pandemic, including massive learning gaps in education, the state launched the Talam Thedi Kalvi volunteer program and is reforming higher education to emphasize problem-solving over rote learning. The government is also addressing climate change through early warning systems, heat emergency protocols, climate-resilient farming, and infrastructure upgrades like stormwater drains and sea-level protection. While concerns about automation and AI-driven job losses persist, the state is preparing through continuous skilling and policy foresight. The episode also challenges the 'freebie' narrative, arguing that investments in health, education, and welfare are capital expenditures that empower citizens, not wasteful spending. The conversation concludes with a call for systemic reforms in education, healthcare, urban infrastructure, and climate adaptation to sustain long-term development. Key takeaways include: (1) Tamil Nadu’s diversified economy—33% industrial contribution, 1/3 income from agriculture, 1/3 from non-agriculture, and 1/3 from allied activities—drives its strong growth; (2) Proactive investment outreach and ecosystem advantages make Tamil Nadu a top choice for global investors, especially in electronics and EVs; (3) Education reforms are underway to shift from rote learning to problem-solving, with long-term changes in assessment and curriculum; (4) Climate resilience is a top priority, with early warning systems, sea-level protection, and heat emergency protocols already in place; (5) The state is preparing for AI and automation through skilling, re-skilling, and policy foresight; (6) The 'freebie' debate is reframed as a capital investment in people, with health, education, and welfare seen as foundational, not wasteful; (7) Future reforms must focus on aging populations, non-communicable diseases, urban infrastructure, and equitable development across Tier 2/3 cities; (8) The state’s success lies in proactive governance, continuous monitoring, and long-term planning.