Tamil Nadu's Goods and Services Tax (GST) revenue growth slowed to 3 per cent in October, former finance minister Thangam Thennarasu said on Monday, citing official figures, as the opposition DMK targeted the ruling TVK government over the state's economic performance.

Source: The Hindu BusinessLine

According to the figures cited by Thennarasu, neighbouring states recorded far stronger growth in October: Andhra Pradesh 24 per cent, Kerala 23 per cent, Karnataka 18 per cent and Telangana 14 per cent. Tamil Nadu's 3 per cent was also well below the national average growth of 22.9 per cent for October, and followed contractions of 1 per cent in August and 5 per cent in September, the reports said.

Thennarasu argued that the modest overall increase was partly supported by taxes collected on certain goods imported into the state, while revenue linked to Tamil Nadu's own production continued to decline — a pattern he described as a warning sign of wider economic stagnation. He called for urgent steps to strengthen domestic production.

Stalin's investment allegation

DMK president and former chief minister M K Stalin separately alleged that a proposed South Korean investment worth Rs 1,614 crore, which he said had been expected in Tamil Nadu, had shifted to Andhra Pradesh because of the state government's negligence. He further alleged that Guidance Tamil Nadu, the state's investment-promotion agency, had been sidelined. These are opposition allegations; the reports carried no response from the state government or the agency.

Stalin also alleged that Chief Minister C Joseph Vijay was concentrating on an upcoming bypoll, referring to the chief minister's roadshow in Pudukkottai on Monday, instead of addressing the state's economic challenges. GST growth is one indicator of economic activity and does not by itself establish the full condition of a state's economy; what to watch next is the state government's response to the October figures and any clarification on the investment claim.