Tamil Nadu has attracted several industrial sectors that are a part of India's new economy sectors. In recent years, these industries have helped the state achieve over 13 per cent of GSDP growth. The Census 2001 highlighted that Tamil Nadu has the highest level of urbanisation rate (43.86 per cent) among all states.

The state attracted cumulative FDI inflows of US$ 5.2 billion between April 2000 and October 2009 and is amongst the highest FDI attracting states. FDI inflows have helped achieve greater technological advancement and more value added, exportable products.

The state comprises of well qualified, skilled, disciplined, productivity-oriented and English-speaking workforce. The standard of education and educational institutions is highly rated in the country. Average wages are also lower than similar workforce in the developed countries.

At current prices, the Gross State Domestic Product (GSDP) of Tamil Nadu was about US$ 73.7 billion in 2008-09. The average GSDP growth rate from 2001-02 to 2008-09 was about 13.2 per cent. The tertiary sector's share in GSDP was 55.3 per cent in 2008-09. Trade, hotels and restaurants –the largest sub-group of the sector –registered a growth of 11.9 per cent over the previous year.

Chennai, Coimbatore and Madurai are the three major cities of Tamil Nadu. Chennai is the largest urban metropolis of the state. Coimbatore is a major textiles and engineering hub of South India. The hill stations of Ooty, Coonnorand Valparaiare close to Chennai make it a good base for tourists, all year round. Madurai is regarded as the 'Temple City' and known for its cultural significance.

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