In a stark contrast to the overall decline in India's merchandise exports, which contracted by 3.1% year-on-year to $437.1 billion in FY 2024, Tamil Nadu has emerged as a beacon of growth. The state recorded a remarkable 7.1% increase in its exports, reaching $43.6 billion, thereby boosting its share of India's total exports from 8.3% in FY 2022 to 10% in FY 2024 [11016606].
While Gujarat's exports fell by 10% to $134.4 billion, Maharashtra's by 7.2% to $67.2 billion, Karnataka's by 4.7% to $26.6 billion, and Uttar Pradesh's by 5.1% to $20.6 billion, Tamil Nadu's performance stands out due to its strategic focus on key sectors. The state leads in several industries, including telecom instruments (44%), cotton garments (40%), garments of other textiles (38%), motor vehicles (37%), auto components (32%), electronic machinery (32%), and leather footwear (48%) [11016606].
A significant factor contributing to Tamil Nadu's export success is its robust infrastructure, highlighted by the presence of 51 operational Special Economic Zones (SEZs), the highest in India. This infrastructure supports a diverse manufacturing base and fosters innovation, making the state an attractive destination for businesses [11016606].
Additionally, Tamil Nadu ranked first in NITI Aayog’s Export Preparedness Index 2022, reflecting its readiness and strategic planning in enhancing export capabilities. The state has set ambitious goals, aiming to become a top 20 global startup destination by 2032, further emphasizing its commitment to economic growth and innovation [11016606].
As other Indian states grapple with declining export figures, Tamil Nadu's model of leveraging SEZs, focusing on high-demand sectors, and fostering a startup ecosystem could serve as a valuable blueprint for driving export growth across the country [11016606].