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Tamil Nadu and Kerala: as their past success trails off, they must find new ways to sustain their economic momentum

Tamil Nadu and Kerala showcase successful but evolving development models in Southern India. Tamil Nadu's industrial prowess is challenged by waning momentum and over-reliance on Chennai, necessitating business dispersal. Kerala, socially advanced, faces economic dependency on remittances, which are becoming unsustainable, though its dispersed urbanization offers new growth avenues. Both states confront demographic shifts, aging populations, and the need for advanced skills. The author argues for reinventing their systems: Tamil Nadu must scale innovation beyond Chennai, while Kerala needs to build domestic wealth engines, moving from stability to sustained momentum in the next decade.

LiveMint · Rajesh Shukla · May 8, 2026 at 8:30 AM

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