TRB Rajaa, TN Industry Minister
| Photo Credit:
BIJOY GHOSH
Welfare measures or ‘freebies’ are a key driver for Tamil Nadu’s standout economic growth and are driving the local economies, pushing money back into the system, State Industries Minister TRB Rajaa said. With a recent RBI report pegging Tamil Nadu’s nominal Gross State Domestic Product (GSDP) growth at 16 per cent in FY25 (the highest among all top states), the minister told businessline that inclusive distributive growth is the key. The State gets its investments from not just the US but also Germany, UK, Japan, and other countries, making us more resilient to geopolitical shocks, he added.
The Minister discussed emerging area of shipbuilding, GCCs, competition from other States, and more .
Edited Excerpts:
Doubt-digit GDP growth and highest among top states for TN in FY25. Is it only manufacturing or something more that’s pushing growth?
Targeted welfare measures, not some blanket measures, are giving us really good results. Mobility is everything and when half of your population is enabled with free mobility (via CM’s scheme of free bus travel for women), that is a massive push. Close to 1.5 crore women who are getting ₹1,000 every month- they’ve all contributed to the GDP growth. So every single rupee spent on welfare measure comes back to the coffers of the State, and the wheels of economy keep churning. It takes decades of work for the results to come out.
The manufacturing sector seems to have particularly outperformed in FY25. What are the drivers besides electronics?
In Tamil Nadu, we are at a position where we can manufacture anything under the sun. Our capabilities are immense. The next focus is R&D. We are consistently focusing on high-end, high value manufacturing set ups and jobs. Our impetus on education has given us a huge human capital, and these are high quality talent and that is why we focus on emerging sectors for this pool.
We have seen successive shipbuilding investments come into TN. What is the potential you see?
For every job created by a shipbuilder, 7 ancillary jobs are created. It is a sector with one of the biggest multiplier effects. We have the second largest coastline in India and blue economy needs to be tapped in a big way. And we did not play an incentive game with shipbuilding MoUs, it’s more for the infrastructure and talent pool. We gave the companies’ the true picture and took them to all these destinations. They were happy with what they saw, the speed of governance, and the decision making. Particularly for Thoothukudi, this is going to be a complete transformation. As an anchor company, Vinfast has helped us in positioning the district.
What has been the impact of the tariffs on the export-heavy TN economy?
We are a very resilient State. Our bets and sectors are varied. I think we can manage the storm. Right now, the textile sector is taking a hit and we’ve asked the Union to step in and help. We are hoping they will do more to help them. The seafood sector also needs help. The Union said that UK FTAs will help and we agree, but the US is such a massive market that we just can’t discount them. Tamil Nadu’s investments also come from a variety of regions and not just the US. I will also be going to Korea next.
Will Tamil Nadu have a Fab? Are you seeking one?
Our pitch for Fabs was never for jobs, but it was always for national security because a Fab in the northern borders is not a very smart move. It is also because we have the manufacturing ecosystem here needed for the Fabs. We still definitely want a Fab and we are working around the Union’s blockade. We are working to put up a small training ecosystem fab to train our design talent. A Fab coming into Tamil Nadu will have much better productivity than in any other State in India.
What about GCCs? Other Southern states are ahead in the social infrastructure needed for it.
I think, as a State, we are more focused on employees’ physical and mental well-being. Tamil Nadu’s idea of leisure is slightly different. We have more of good food, music arts and culture, and relaxation. And lot of outdoors, trekking, forests and adventure tourism. These are all the things we’re working on to add value to the GCC employee. I think young people will need these specific set of leisure to get their minds away from the stress of work. As for the commercial space shortage, we are also looking at expanding the FSI. Certain parts of the city might get an FSI relaxation. We have been pushing from the industry department side
There is stiff competition from other states recently on big-ticket investments ?
Tamil Nadu knows what it wants. We will be very selective on what sort of investments and jobs we incentivise. Today, we are in a position where we can choose our investors. We are not a desperate State, but a very choosy one . We also have limited resources when it comes to land, we can’t just splurge on incentives. When we sign MoUs, we convert. That is why no other State comes close to our conversion rate of 80 per cent.
What about Data Center projects? We see a lot of them going to other States recently?
A few projects going to other States do not mean anything. Tamil Nadu is the biggest gateway in India with seven subsea cables landing in Chennai. There’s a new one coming up in down south also. We scout for high-end green data centres at certain locations so that we can also balance the energy and water requirements. Data Centres also don’t give you the number of jobs that some other high-end, investments bring in.
Published on December 13, 2025
