GST growth only 3%, Korean firms lost to AP: Opposition

CHENNAI: The State's economic performance came under scrutiny on Monday, with DMK and BJP leaders attacking the TVK government over sluggish GST growth and the loss of proposed South Korean investments worth Rs 1,614 crore to Andhra Pradesh.

Former industries minister TRB Rajaa, BJP chief spokesperson Narayanan Thirupathy and We The Leaders founder K Annamalai raised concerns over revenue mobilisation, public spending and the State's investment climate.

Rajaa said Tamil Nadu's gross GST collections grew by just 3 per cent in October, against national growth of about 16 per cent. Andhra Pradesh recorded 24 per cent growth, Kerala 23 per cent, Karnataka 18 per cent and Telangana 14 per cent. He also flagged negative growth in August and September, calling the figures two disturbing developments.

Annamalai said October's improvement was the only relief after several months of contraction but remained inadequate despite the festive season, extended school holidays and increased tourist inflows. He urged the government to monitor capital expenditure across departments, arguing that a slowdown in public spending could weaken wider economic activity.

He cited Tamil Nadu's 15.43 per cent share of the country's factories and a 10.26 per cent share of manufacturing Gross Value Added (GVA), arguing that industrial growth needed to reach districts beyond the leading centres. However, the latest Annual Survey of Industries data puts the State's factory share at 15.44 per cent and its GVA share at 10.90 per cent in 2024-25, up from 10.26 per cent in 2023-24.

Separately, Narayanan Thirupathy accused the government of failing to retain three South Korean automotive component makers—Hwashin, Seoyon and Iwamet—that had signed MoUs with Andhra Pradesh to set up facilities in Anantapur. The projects involve proposed investments of Rs 1,614 crore and are expected to generate 1,418 jobs.

He said the companies had earlier held discussions with Tamil Nadu but alleged that the State failed to convert them into commitments. The BJP leader also questioned Guidance Tamil Nadu's response.