India's Superstar State

The Economic Parity and Social Divergence

On the surface, the two contenders appear evenly matched. Both Gujarat and Tamil Nadu are coastal industrial giants with similar populations and comparable levels of GDP per capita. They are the engines of the Indian economy. However, the similarity ends at the aggregate numbers. The distinction lies in how that wealth is generated and, crucially, how it is distributed.

Despite similar income levels, Tamil Nadu hosts significantly fewer people living in poverty than Gujarat. This reveals the limitations of a purely GDP-focused lens. While the Gujarat model excels at creating wealth at the top, the benefits often trickle down slowly. In contrast, Tamil Nadu’s growth has been broad-based. The state has managed to decouple economic expansion from rising inequality, proving that high growth rates (11% in the last fiscal year) and social equity are not mutually exclusive—they are, in fact, complementary.

Human Capital: The Engine of Resilience 

The core differentiator, as highlighted by The Economist, is Tamil Nadu’s decades-long commitment to "soft infrastructure"—specifically public health and education. The disparities are stark. Tamil Nadu’s primary health centers are staffed by 60% more doctors than those in Gujarat, and its public hospitals boast twice the number of beds.

This investment in health is matched by an aggressive focus on education. With nearly 50% of young adults attending college—compared to a national average of 28%—Tamil Nadu has created a talent pool that is vastly more skilled than its peers. This is the state’s greatest economic moat. In a modern economy, a healthy, educated workforce is a more valuable asset than tax breaks or cheap land. It transforms the population from a demographic burden into a demographic dividend.

From Heavy Metal to High Tech 

The impact of this human capital investment is most visible in the industrial composition of the two states. The Gujarat model has historically favored capital-intensive sectors like petrochemicals and heavy manufacturing. These industries generate massive revenue but relatively few jobs.

Conversely, Tamil Nadu’s educated workforce has attracted labor-intensive, high-tech industries. The state has become India’s electronics hub, accounting for roughly 40% of the nation’s electronics exports in 2023-24. Companies looking to assemble iPhones or manufacture electric vehicles flock to Tamil Nadu not just for its ports, but for its people. The state demonstrates that when a government invests in the cognitive capabilities of its citizens, it naturally attracts higher-value, future-proof industries.

The Missing Link: Female Labor Force Participation 

Perhaps the most damning statistic for the rest of India, and the crowning achievement for Tamil Nadu, is the participation of women. The essay notes that an astonishing 40% of all women working in India's manufacturing sector are employed in Tamil Nadu.

This is not an accident of culture, but a result of policy. By ensuring safety, providing accessible transport, and educating girls at the same rate as boys, Tamil Nadu has unlocked a section of the workforce that remains dormant in much of northern and western India. No economy can reach "superstar" status while leaving half its productive capacity on the sidelines.

Conclusion 

The comparison between Gujarat and Tamil Nadu offers a vital lesson for India’s federal polity. Visible infrastructure—bridges, bullet trains, and statues—offers immediate political gratification and optical proof of development. However, the "Tamil Nadu model" proves that the invisible infrastructure of a doctor in a rural clinic, a girl in a college classroom, and a skilled worker in an electronics factory yields higher long-term returns.

As The Economist concludes, Tamil Nadu is the superstar state because it realized early that the ultimate resource of a nation is its people. If India wishes to replicate this success on a national scale, it must understand that social welfare is not a drain on the economy; it is the very foundation of it.