Tamilnadu Economy Updated Data- Must for TNPSC Prelims and Mains Exam

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Tamil nadu economy updates

Gross State Domestic Product (GSDP)

The Gross State Domestic Product (GSDP) of Tamil Nadu for 2019-20 at current prices is estimated to be Rs 17,25,639 crore, which is 8% higher than the revised estimate for 2018-19. (Budget 2019-20)

Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.46 per cent to Rs 16.06 trillion (US$ 222.58 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.45 per cent to Rs 14.41 trillion (US$ 199.69 billion).

Total expenditure

Total expenditure for 2019-20 is estimated to be Rs 2,64,556 crore, a 6.5% increase over the revised estimate of 2018-19. In 2018-19, as per the revised figures, there is estimated to be an increase of Rs 6,707 crore (2.8%) of expenditure over the budgeted estimate.   (Budget 2019-20)

Total receipts

Total receipts (excluding borrowings) for 2019-20 are estimated to be Rs 2,02,788 crore, an increase of 8.2% as compared to the revised estimate of 2018-19. In 2018-19, total receipts (excluding borrowings) is estimated to be higher than the budgeted estimate by Rs 5,621 crore (3.1%).

Revenue Deficit

Revenue deficit for the next financial year is targeted at Rs 14,315 crore, or 0.83% of the GSDP. Fiscal Deficit is targeted at Rs 44,176 crore (2.56% of GSDP).

Accident cum life insurance scheme

An accident cum life insurance scheme will be launched for all families below the POVERTY line.  The scheme will provide an insurance cover of Rs two lakh and Rs four lakh for natural death and accidental death, respectively.  In case of permanent disability, the amount will be Rs one lakh.  Rs 250 crore has been allocated for payment of premium under the scheme in 2019-20. (Budget 2019-20)

Urban housing budget

The Tamil Nadu Housing and Habitat Development for Urban Poor programme will be launched with the World Bank’s assistance.  Under the programme, 38,000 tenements, at a cost of Rs 4,648 crore, will be constructed in Chennai and the surrounding areas for poor families living at river margins.

Budget for Electric and BS-VI buses

Rs 5,890 crore has been allocated to procure 12,000 new BS-VI buses and 2,000 new electric buses.  2,000 BS-VI buses and 500 electric buses will be introduced in the first phase.  (Budget 2019-20)

Budget for Public Health

The Tamil Nadu Health Systems Reforms programme will be launched at a cost of Rs 2,686 crore to improve access of poor and disadvantaged to the government health facilities.  Further, an essential diagnostics list will be formulated to guarantee a set of diagnostic tests at each level of health care.

Revenue deficit

It is the excess of Revenue Expenditure over Revenue Receipts.  A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets.  The budget estimates a revenue deficit of Rs 14,315 crore (or 0.83% of GSDP) in 2019-20, a decrease from 1.21% of GSDP as per the revised estimate of 2018-19.  Revenue deficit was 1.49% of GSDP in 2017-18.  These estimates indicate that the state is moving towards the target of eliminating revenue deficit, prescribed by the 14th Finance Commission.

 

 

Fiscal deficit

It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the State Government, and leads to an increase in total liabilities.  In 2019-20, fiscal deficit is estimated to be Rs 44,176 crore, which is 2.56% of the GSDP.  The estimate is under the 3% limit prescribed by the 14th Finance Commission.  Fiscal deficit in 2017-18 and revised estimate of 2018-19 are also within the 3% limit.

FDI inflow trends

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Tamil Nadu and Puducherry during April 2000 to December 2018 stood at US$ 29.28 billion. During 2017-18, total merchandise exports from the state stood at US$ 29.75 billion. During 2018-19^, the exports stood at US$ 27.44 billion.

Special economic zone

Tamil Nadu has 51 formally approved SEZs, 47 notified SEZs and three with in- principle approval SEZs and 40 exporting SEZs, as of January 2019.

IT and ITes export

IT & ITeS exports from Tamil Nadu have increased to Rs 1,111.79 billion (US$ 17.25 billion) in 2017-18, at a growth rate of 8.55 per cent year-on-year.

Tourism industry

Tamil Nadu’s tourism industry increased in terms of tourist arrivals to reach 349.92 million in 2017, at a CAGR of 16.48 per cent between 2011 & 2017. Tamil Nadu ranks 1 st in terms of domestic tourist arrivals and 2 nd in terms of foreign tourist arrival in 2017(P).

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Tamil Nadu is one of the most developed states in India, with a strong economy and a high standard of living. The state has a diverse economy, with a strong focus on agriculture, industry, and Services.

Agriculture is the backbone of the Tamil Nadu economy, employing over 50% of the state’s workforce. The state is a major producer of rice, sugarcane, Cotton, and oilseeds. The state also has a thriving Dairy industry.

Industry is another important sector of the Tamil Nadu economy. The state is home to a number of major industries, including automobile manufacturing, textiles, and electronics. The state also has a strong Infrastructure-2/”>INFRASTRUCTURE, with a well-developed road Network, Ports, and Airports.

The services sector is the fastest growing sector of the Tamil Nadu economy. The state is a major center for information technology and business process Outsourcing. The state also has a thriving tourism industry.

Tamil Nadu has a strong Human Development index, with a high Literacy rate and life expectancy. The state also has a good social security system, with a number of government programs to provide for the welfare of its citizens.

The Tamil Nadu economy is facing a number of challenges, including high levels of poverty and Unemployment. The state is also facing the challenge of Climate change, which is having a negative impact on agriculture and other sectors of the economy.

Despite these challenges, the Tamil Nadu economy is expected to continue to grow in the coming years. The state has a number of strengths, including a skilled workforce, a strong infrastructure, and a favorable Investment climate.

The future of the Tamil Nadu economy looks bright. The state is well-positioned to take advantage of the opportunities presented by the global economy. The state is also working to address the challenges it faces, and is committed to improving the lives of its citizens.

Here are some additional details on each of the subtopics:

  • Agriculture in Tamil Nadu: Agriculture is the backbone of the Tamil Nadu economy, employing over 50% of the state’s workforce. The state is a major producer of rice, sugarcane, cotton, and oilseeds. The state also has a thriving dairy industry.
  • INDUSTRY IN TAMIL NADU: Industry is another important sector of the Tamil Nadu economy. The state is home to a number of major industries, including automobile manufacturing, textiles, and electronics. The state also has a strong infrastructure, with a well-developed road network, ports, and airports.
  • Services Sector in Tamil Nadu: The services sector is the fastest growing sector of the Tamil Nadu economy. The state is a major center for information technology and business process outsourcing. The state also has a thriving tourism industry.
  • Infrastructure in Tamil Nadu: Tamil Nadu has a strong infrastructure, with a well-developed road network, ports, and airports. The state also has a number of power Plants and water treatment plants.
  • Human Development in Tamil Nadu: Tamil Nadu has a strong human development index, with a high literacy rate and life expectancy. The state also has a good social security system, with a number of government programs to provide for the welfare of its citizens.
  • Social Development in Tamil Nadu: Tamil Nadu has made significant progress in social development in recent years. The state has achieved universal primary Education and has reduced the gender gap in education and EMPLOYMENT. The state has also made progress in reducing poverty and improving healthcare.
  • Economic Development in Tamil Nadu: Tamil Nadu has a strong economy, with a high per capita income and a low unemployment rate. The state is a major center for manufacturing, IT, and tourism.
  • Challenges and Opportunities for Tamil Nadu Economy: The Tamil Nadu economy is facing a number of challenges, including high levels of Poverty and Unemployment. The state is also facing the challenge of Climate Change, which is having a negative impact on agriculture and other sectors of the economy. Despite these challenges, the Tamil Nadu economy is expected to continue to grow in the coming years. The state has a number of strengths, including a skilled workforce, a strong infrastructure, and a favorable investment climate.
  • Future of Tamil Nadu Economy: The future of the Tamil Nadu economy looks bright. The state is well-positioned to take advantage of the opportunities presented by the global economy. The state is also working to address the challenges it faces, and is committed to improving the lives of its citizens.

Here are some frequently asked questions and short answers about the Tamil Nadu economy:

  1. What is the size of the Tamil Nadu economy?

The Tamil Nadu economy is the sixth largest economy in India, with a gross state domestic product (GSDP) of ₹19.93 lakh crore in 2020-21.

  1. What are the major sectors of the Tamil Nadu economy?

The major sectors of the Tamil Nadu economy are agriculture, manufacturing, services, and tourism.

  1. What is the contribution of each sector to the Tamil Nadu economy?

Agriculture contributes 12.3% to the Tamil Nadu economy, manufacturing contributes 34.1%, services contribute 47.6%, and tourism contributes 6%.

  1. What are the major agricultural products of Tamil Nadu?

The major agricultural products of Tamil Nadu are rice, sugarcane, cotton, groundnut, and oil palm.

  1. What are the major manufacturing industries of Tamil Nadu?

The major manufacturing industries of Tamil Nadu are automobiles, textiles, electronics, chemicals, and Food Processing.

  1. What are the major services sectors of Tamil Nadu?

The major services sectors of Tamil Nadu are IT and ITES, Banking and finance, tourism, and retail.

  1. What are the major tourist attractions of Tamil Nadu?

The major tourist attractions of Tamil Nadu are the temples of Madurai, the beaches of Chennai, the backwaters of Alleppey, and the Mountains of Kodaikanal.

  1. What are the major challenges facing the Tamil Nadu economy?

The major challenges facing the Tamil Nadu economy are infrastructure deficit, power shortage, and Skill development.

  1. What are the government’s initiatives to address the challenges facing the Tamil Nadu economy?

The government’s initiatives to address the challenges facing the Tamil Nadu economy include the Chennai Metro Rail Project, the Madurai Airport Expansion Project, and the Tamil Nadu Skill Development Mission.

  1. What is the outlook for the Tamil Nadu economy?

The outlook for the Tamil Nadu economy is positive, with the state expected to grow at a rate of 8-9% in the next few years.

  1. Which of the following is not a major sector of the Tamil Nadu economy?
    (A) Agriculture
    (B) Industry
    (C) Services
    (D) Tourism

  2. The main agricultural products of Tamil Nadu are:
    (A) Rice, sugarcane, cotton
    (B) Tea, coffee, rubber
    (C) Jute, oilseeds, pulses
    (D) All of the above

  3. The main industries of Tamil Nadu are:
    (A) Textiles, automobiles, electronics
    (B) Chemicals, pharmaceuticals, Software
    (C) Steel, cement, power
    (D) All of the above

  4. The main tourist attractions of Tamil Nadu are:
    (A) The temples of Madurai and Thanjavur
    (B) The beaches of Chennai and Kovalam
    (C) The hill stations of Ooty and Kodaikanal
    (D) All of the above

  5. The per capita income of Tamil Nadu is:
    (A) ₹1.5 lakh
    (B) ₹2 lakh
    (C) ₹2.5 lakh
    (D) ₹3 lakh

  6. The literacy rate of Tamil Nadu is:
    (A) 80%
    (B) 85%
    (C) 90%
    (D) 95%

  7. The Population-of-tamil-nadu/”>Population Of Tamil Nadu is:
    (A) 70 million
    (B) 80 million
    (C) 90 million
    (D) 100 million

  8. The capital of Tamil Nadu is:
    (A) Chennai
    (B) Madurai
    (C) Coimbatore
    (D) Tiruchirappalli

  9. The chief minister of Tamil Nadu is:
    (A) M.K. Stalin
    (B) Edappadi K. Palaniswami
    (C) O. Panneerselvam
    (D) M.R. Vijayabhaskar

  10. The governor of Tamil Nadu is:
    (A) Banwarilal Purohit
    (B) R.N. Ravi
    (C) P.S. Sreedharan Pillai
    (D) Tamilisai Soundararajan

Answers:
1. (D)
2. (A)
3. (A)
4. (D)
5. (C)
6. (B)
7. (C)
8. (A)
9. (A)
10. (D)