According to Finance Minister Palanivel Thiaga Rajan’s budget address for 2023–24, Tamil Nadu’s Gross State Domestic Product (GSDP) is expected to have expanded by about 14% in nominal terms in 2022–23 and is projected to stay at the similar level going forward.

The shock brought on by the COVID-19 pandemic has been partially recovered by the Indian economy. In constant terms, the growth is predicted to be 7% this year. Nonetheless, the growth of the Indian economy for 2023–2024 is estimated at 6.5%, the Minister said, despite a bleak future with global uncertainties brought on by the conflict in Ukraine, high inflation, and worries of a recession.