Chennai: DMK president and former Tamil Nadu Chief Minister M K Stalin has criticised the ruling Tamilaga Vettri Kazhagam (TVK) government over the state’s economic performance, citing slow Goods and Services Tax (GST) revenue growth and the reported shift of a Rs 1,614-crore Korean investment proposal to Andhra Pradesh.
Stalin alleged that the government led by Chief Minister C Joseph Vijay had weakened the state’s economic prospects through administrative inaction and policy failures. He also questioned the Chief Minister’s focus on public roadshows in constituencies facing by-elections, saying the state’s economic concerns required greater attention.
The criticism came as former Tamil Nadu Finance Minister Thangam Thennarasu highlighted October GST figures showing that the state recorded 3% year-on-year growth, compared with higher growth in neighbouring southern states.
The figures have become the focus of a political dispute over Tamil Nadu’s revenue performance, domestic production and ability to attract industrial investment. The allegations, however, are the DMK leaders’ assessment of the data and the government’s performance, rather than an independent finding that the state is in an economic downturn. The Times of India+1
Stalin flags GST growth and Korean investment proposal
In a post on X on Monday, Stalin said Tamil Nadu’s GST revenue growth under the TVK government was below the national growth figure of 22.9% reported for October.
He also alleged that a Korean investment proposal worth Rs 1,614 crore, which was intended for Tamil Nadu, had moved to Andhra Pradesh because of what he described as the state government’s negligence.
“The economic growth of Tamil Nadu has been completely buried under the TVK rule,” Stalin said, criticising the government over the reported developments.
The former Chief Minister accused the administration of moving backwards across sectors and questioned its handling of the state’s investment prospects.
Stalin also directed criticism at Chief Minister Vijay, alleging that he was concentrating on public roadshows and campaigning in Assembly constituencies facing by-elections while Tamil Nadu’s financial future remained uncertain.
“Brace for tough times. Tamil Nadu is doomed under the TVK government,” he said.
The reported investment shift and its stated reason remain allegations raised by Stalin. The available reports do not independently establish that the project moved solely because of negligence by the TVK government. MK Stalin+2
Thangam Thennarasu compares Tamil Nadu with neighbouring states
DMK leader and former Finance Minister Thangam Thennarasu also questioned the state’s economic performance, drawing attention to the differences in GST revenue growth across southern states.
According to the October figures he cited in a post on X, Tamil Nadu recorded 3% growth in GST revenue. Andhra Pradesh registered 24%, Kerala 23%, Karnataka 18% and Telangana 14%.
The state’s performance followed two months of contraction, according to figures shared by Thennarasu. Tamil Nadu’s GST revenue had declined by 1% in August and 5% in September.
“It is concerning that Tamil Nadu, once among India’s leading states in economic growth, continues to witness a decline under the TVK government,” he said.
The October figures show that Tamil Nadu’s GST collections increased to Rs 11,661 crore from Rs 11,298 crore in the corresponding month of the previous year. This represents year-on-year growth of 3%, compared with the higher growth rates recorded in the neighbouring states cited by Thennarasu. The Economic Times+2
Concerns over domestic production and tax revenue
Thennarasu also raised concerns about the sources contributing to Tamil Nadu’s tax receipts.
He said taxes collected on certain key goods imported into the state had helped produce a modest increase in overall revenue. However, he alleged that tax revenue generated through domestic production had been declining.
According to the former Finance Minister, this trend should be viewed as an indicator of wider economic stagnation and should prompt the government to strengthen the state’s manufacturing base.
He argued that Tamil Nadu should not depend heavily on revenue from goods brought in from other states or countries. Instead, he called for measures to increase production within the state and expand the sale of locally manufactured goods to markets elsewhere in India and overseas.
“I therefore urge the TVK government to take immediate steps to increase domestic production and expand sales to other states and overseas markets, instead of relying solely on revenue from imported goods,” Thennarasu said.
He added that strengthening domestic production was important not only for the state’s overall economy but also for creating employment opportunities for young people.
His remarks placed manufacturing and job creation at the centre of the DMK’s criticism of the government’s economic approach. தினமணி+2
October GST figures show differences across southern states
The state-wise figures cited in the debate show a marked difference in year-on-year GST growth during October 2026.
| State | GST revenue growth |
|---|---|
| Andhra Pradesh | 24% |
| Kerala | 23% |
| Karnataka | 18% |
| Telangana | 14% |
| Tamil Nadu | 3% |
Tamil Nadu collected Rs 11,661 crore in October, compared with Rs 11,298 crore in October 2025. Andhra Pradesh collected Rs 4,307 crore, while Kerala recorded Rs 3,486 crore. Karnataka’s collections stood at Rs 15,922 crore and Telangana’s at Rs 5,958 crore.
At the national level, gross GST collections rose 22.9% in October to Rs 2.31 lakh crore, according to figures reported by The Economic Times. The state-wise figures also show that the combined growth across states and Union Territories was different from the national gross collection growth rate. These figures refer to different measures and should not be treated as directly interchangeable. The Economic Times+1
The comparison has nevertheless provided the DMK with figures to question Tamil Nadu’s performance against neighbouring states. GST growth is one indicator of economic activity and tax collection, but it does not by itself establish the overall condition of a state’s economy. A wider assessment would also require data on industrial output, investment, employment, consumption and other indicators.
Korean investment proposal becomes part of political dispute
The reported movement of a Rs 1,614-crore Korean investment proposal to Andhra Pradesh has added another dimension to the political exchange.
Stalin alleged that the project was originally intended for Tamil Nadu but shifted to the neighbouring state because of administrative negligence under the TVK government. He used the reported development to question the administration’s ability to attract and retain major industrial investments.
He also criticised the handling of the state’s investment promotion efforts. A report by The Times of India said Stalin alleged that Guidance Tamil Nadu, the state agency responsible for attracting investments, had been sidelined because of what he described as personal egos within the administration. The Times of India+1
However, the available reports do not provide an independent account of the project’s decision-making process or establish the precise reasons for the reported shift. The allegation about the government’s role therefore remains part of the political criticism raised by Stalin.
The issue is significant because industrial investment can influence manufacturing capacity, employment and the development of supplier networks. Any assessment of the reported relocation would need details about the proposed project, its investment commitments, location and the reasons behind the change.
Employment concerns feature in DMK’s criticism
Both Stalin and Thennarasu linked their concerns about economic performance to the state’s employment prospects.
Thennarasu argued that increasing domestic production and expanding sales beyond Tamil Nadu could strengthen the state’s economy while creating more opportunities for young people.
Manufacturing is an important part of Tamil Nadu’s economic activity, and the former Finance Minister’s remarks focused on the need to sustain production within the state rather than rely primarily on revenue from imported goods.
The reported movement of the Korean investment proposal has also brought attention to the state’s efforts to attract industrial projects. However, the extent to which the proposal would have contributed to employment or local manufacturing cannot be established from the details currently available.
The DMK leaders have called on the government to address these concerns through measures to improve production, attract investment and expand market opportunities for businesses based in Tamil Nadu.
Economic performance becomes a point of political confrontation
The criticism from Stalin and Thennarasu has placed Tamil Nadu’s GST performance and investment prospects at the centre of a political debate between the DMK and the ruling TVK.
The figures cited by the opposition show that Tamil Nadu recorded lower year-on-year GST growth in October than Andhra Pradesh, Kerala, Karnataka and Telangana. The reported movement of the Korean investment proposal has added to questions raised by the DMK about the government’s investment strategy.
At the same time, the GST figures represent one part of the state’s economic picture, while the reasons behind the reported investment shift require further clarity. The opposition’s allegations should therefore be distinguished from independently established conclusions about the overall health of Tamil Nadu’s economy.
The debate is likely to keep attention on the government’s approach to manufacturing, investment promotion and employment generation. For the TVK administration, the figures and allegations have created questions about how it plans to strengthen revenue growth and maintain Tamil Nadu’s position as an industrial destination.