South India outpaces rest of India with 6.3 pc GDP growth rate

Chennai: Unveiling a report titled ‘2047 Southern Odyssey: Powering Ahead to a USD 10 Trillion Economy by 2047,’ at the CII's Mystic Global Linkages Summit 2025 here on Monday, experts said South India has outpaced the rest of India with 6.3 per cent GDP growth rate, contributing over 30 per cent to National GDP.

They said Innovation, Sustainability, and Future Mobility were the key drivers for South India’s path to achieve USD 10 trillion economy.

"South India far outperforms other regions of India, with a 6.3% GDP growth rate compared to 5% for the rest of India, contributing over 30% to India's GDP. The region leads in economic progress. The per capita income has also grown at 5% compared to 4.2% annual growth for the rest of India, and labour force participation is higher than the national average", Dr V Anantha Nageswaran, Chief Economic Advisor, Government of India, said, inaugurating the Summit organised by CII Southern Region.

He said Andhra Pradesh and Telangana also boasts of 50%+ women's workforce participation which are the only two Indian states to see this kind of participation.

“It's vital for greater industry-academia collaboration with long term strategic competitiveness in mind", he said and urged industries to look at Rand D as an investment, rather than an expenditure.

A report, ‘2047 Southern Odyssey: Powering Ahead to a USD10 Trillion economy,’ was released by the dignitaries highlighting a significant step in charting South India’s economic aspirations.

South India is at the forefront of sustainability and future mobility. With Tamil Nadu and Karnataka generating over 22 GW of wind and solar power, and Tamil Nadu leading in electric two-wheeler and auto component manufacturing, the region is well-positioned for a green industrial revolution, Mr R Mukundan, Vice President, CII and MD and CEO, Tata Chemicals Ltd, said.

Strengthening EV infrastructure and fostering industry-policy collaborations will be key to accelerating South India’s global competitiveness in sustainable technologies, he said.

“South India stands at a crucial financial and economic turning point. Seamless credit access and strong fiscal policies are key to achieving its USD10 trillion goal. With strategic investments and industrial growth, the region can drive India’s economic momentum while fostering innovation and entrepreneurship", he said.

Further, public-private partnerships are reshaping development, ensuring efficiency and investment in infrastructure, manufacturing, and renewable energy, Mr Mukundan said, adding, as India targets a USD 30 trillion economy and Tamil Nadu aims for a USD 40,000 per capita income, smart industrial zones, export logistics, and social infrastructure will be vital for sustainable growth.

Mr R Dinesh, Immediate Past President, CII and Executive Chairman, TVS Supply Chain Solutions Ltd, said South India has unique advantages across manufacturing, technology, and human perspectives, which give it a strategic edge.

With the longest coastline among many global regions, South India enjoys a natural geographic advantage, positioning it as a key player in trade and economic growth, he said.

Dr R Nandini, Chairperson, Southern Region, CII and MD, Chandra Textiles, said South India has substantial economic contributions, accounting for 31% of India’s GDP and 40% of FDI inflows.

The region is well-positioned to lead in knowledge-based industries such as education and human capital development with a skilled workforce exceeding 150 million and high literacy rates,” she said.

Mr T T Ashok, Chairman, CII Mystic South 2025 and MD, Taylor Rubber presented a strategic roadmap, introducing the 'Cosmic Six' key drivers--Advanced Manufacturing, Electronics and Semiconductors, Emerging Technologies, Sustainability, Future Mobility, and the Tourism and Creative Economy--aimed at sustaining a 7-8% growth trajectory for the next two decades.

The Mystic South Global Linkages Summit 2025 has set an ambitious agenda, reinforcing South India's role as a leader in industrialization, sustainability, and innovation.

It sparked a bold vision for the region’s economic and industrial future, uniting visionary leaders to chart a transformative path.

With a focus on innovation, sustainability, and global competitiveness, the inaugural session laid the foundation for South India’s rise as a USD 10 trillion economic powerhouse by 2047.