TAMIL NADU, A GCC MAGNET

Team L&M

Amid Tamil Nadu’s vision toward becoming a one trillion dollar economy by 2030, the state is penning an ambitious new chapter into its growth story. The state leverages its uniquely balanced partnership between its industrial base and expanding services economy – drawing increasing global and domestic investments.

To this end, Tamil Nadu is also metamorphosing into a prime GCC (Global Capability Centers) magnet with over 250 centres already across the state, finds the FICCI-ANAROCK report Real Estate & Infrastructure Driving Growth in Tamil Nadu.

Released at the FICCI Real Estate & Infrastructure Summit & Awards (REISA) in Chennai, the report underscores that Chennai alone now hosts 10 per cent of India’s GCCs. After Chennai, Coimbatore in Tamil Nadu ranks among the top Tier 2 cities for setting up GCCs in India.

TN 2nd-most competitive location for Electronic R&D activities globally, with over 750 R&D institutes

The report further highlights the state’s rapidly expanding data centres landscape. Chennai and MMR continue to be hotspots for data centre operators, together contributing over 70 per cent of India’s total data centre stock. Besides Chennai, Tamil Nadu’s Coimbatore and Madurai are upcoming data-centre hubs. The state also hosts 54 operational SEZs – the highest in the country – and around 30 SIPCOT (State Industries Promotion Corporation of Tamil Nadu) industrial parks.

Bhupesh Nagarajan, Co-chairman – FICCI Tamil Nadu State Council & CMD – Indira Group of Companies, says, “Beyond industrialization, infrastructure has been pivotal in driving Tamil Nadu’s economic growth. Expanding airports, seaports, industrial corridors, logistics parks, expressways, and metro networks are strengthening connectivity within and beyond the state. Upcoming projects such as the Parandur greenfield airport, Chennai Metro Phase II, and major highway upgrades will further cement Tamil Nadu’s role as a key economic gateway.”

As these developments ease mobility and trade, they are reshaping the state’s economic geography, opening new business corridors, and linking remote regions to major growth centres.

After Chennai, Coimbatore now among top Tier 2 cities for Global Capability Centers in India

Chennai’s real estate topography is segueing seamlessly into its broader economic momentum. The state’s residential market continues to thrive on the back of aspirational end-user demand.

Sanjay Chugh, Director & City Head – Chennai, ANAROCK Group, says, “As per ANAROCK Research, between 2021 and 9M 2025, over 83,100 new residential units were launched in Chennai, and 85,200 units sold. This near alignment of supply and absorption highlights a balanced market which comfortably absorbs new inventory.”

“This healthy housing market ratio reflects both the unwavering developer confidence and strong end-user participation that are Chennai’s defining highlights,” says Chugh. “Mid-end projects priced in the INR 40 – 80 lakh bracket dominates new supply in the city, accounting for a 43% share of the total supply of 2021-9M 2025.”

Meanwhile, Chennai’s commercial office and industrial & warehousing sectors continue to display healthy activity, backed by strong fundamentals and sustained office demand from technology firms, GCCs and new-age enterprises.

Chennai & MMR remain prime data centre hotspots in India

“Tamil Nadu is gearing up on all front to contribute significantly to India’s vision of becoming a trillion-dollar economy by 2030,” says Anuj Puri, Chairman – ANAROCK Group. “For this, it leans heavily on its major strengths – industrial diversification, infrastructure expansion, and human capital development. Key Tier-II cities such as Coimbatore, Madurai, Tiruchirappalli, and Salem have also witnessed rising potential-driven interest. Their evolution into meaningful economic centres reflects the increasingly distributed nature of growth across the districts of Tamil Nadu beyond Chennai.”

This report provides a holistic perspective on these changes, combining economic data, policy updates, sector insights, and market trends. It also underscores the state’s commitment to its long-term growth story.

Other Highlights

Most urbanized state in India with 48% urbanization rate as per the last census
Tamil Nadu attracted USD 3.68 billion in FDI in FY25 and a cumulative USD 17.29 billion between Oct 2019 and June 2025.
It is the 3rd largest exporting state in India with exports worth ~USD 52 billion in FY25.
Known as ‘EV Capital of India’ – contributes 70% of India’s EV 2-wheelers production