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Under AIADMK Tamil Nadu has become the second-largest contributor to India's GDP.

Although the state has seen growth under AIADMK's successive tenures, both AIADMK and DMK's commitment to progressive politics has aided rise in GDP.

Tamil Nadu is one of the most selected states for business investments, and it is ranked second most extensive in GDP behind Maharashtra. Tamil Nadu's Gross State Domestic Product (Constant Prices) in 2015-16 was 9,67,56,246, whereas Maharashtra's GDP was 16,54,28,361. Tamil Nadu is an urbanized state and the most industrialized with a strong manufacturing base with a services sector.

The state has reported high growth and economic transformation and significant progress on social outcomes. In 2019-20 Tamil Nadu registered a higher Gross State Domestic Product rate with 13,12,92,921. Tamil Nadu registered a higher economic growth rate than the national average. At 8.03 per cent, it was double the all-India average of 4.2 per cent in 2019-20.

Although Tamil Nadu has been India's second-largest economy in successive AIADMK governments, stiff rivalry between DMK and AIADMK combined with their commitment to progressive politics has been the reason for the states growth, according to experts. Not only did both parties firmly push for education and developmental programs; making the state ‘ready’ for foreign investors after liberalization, they also encouraged industrial development through the Tamil Nadu Industrial Development Corporation and the State Industries Promotion Corporation of Tamil Nadu, founded in 1965 and 1971, respectively.

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