Tamil Nadu (Commonwealth Union)_ In a major economic development, Tamil Nadu has officially overtaken the entire GDP of Pakistan, marking a new milestone in India’s state-level economic performance. According to the latest data from the International Monetary Fund (IMF) and Indian government sources, Tamil Nadu’s Gross State Domestic Product (GSDP) for the financial year 2024–25 has reached ₹31.55 lakh crore, equivalent to approximately USD 419.74 billion, surpassing Pakistan’s national GDP, which stands at around USD 397.58 billion.
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This striking development underscores the rapid economic growth of India and its key states. Tamil Nadu, one of India’s most industrialised regions, recorded a real economic growth rate of 9.69% during the 2024–25 fiscal year, the highest among all Indian states. The state’s performance has been driven by its robust manufacturing base, technological innovation, and export-led growth, further accelerated by the national ‘Make in India’ initiative. In comparison, Pakistan’s economy has been hampered by persistent challenges including political instability, high inflation, and a chronic balance of payments crisis. The IMF recently downgraded Pakistan’s projected GDP growth for 2025 to 3%, down from the earlier estimate of 3.2%. The country’s current GDP is estimated at approximately USD 373.08 billion, growing at just 2.6%.
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Tamil Nadu’s economic trajectory mirrors the broader national picture, where India’s GDP at current prices has crossed USD 4 trillion, growing at 6.4% in 2025, nearly 10 times the growth rate of Pakistan. Additionally, Maharashtra, another Indian economic powerhouse, has also surpassed Pakistan with a GSDP of ₹42.67 lakh crore. Geopolitical tensions have further compounded Pakistan’s economic woes. Following the recent Pahalgam terror attack, India launched Operation Sindoor and implemented strict economic measures against Pakistan. These include a complete halt to trade and the suspension of the Indus Waters Treaty (IWT), a critical water-sharing agreement established in 1960.
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The suspension of the IWT could have dire consequences for Pakistan, which relies on the Indus River system for 80% of its farmland and over 90% of its water supply. Hence, disruption in water flows threatens widespread agricultural failure, food shortages, and power outages, potentially triggering a severe economic and humanitarian crisis. As India’s states like Tamil Nadu and Maharashtra continue to grow, the economic divide between India and Pakistan is widening, highlighting the success of India’s development policies and the pressing need for reform in Pakistan’s governance and economic strategy.
