Thu, Apr 2,2026-
The Confederation of Indian Industry (CII) released its report ‘Rising South: Next Wave of Growth’ at the South India Annual Convention 2026, underscoring Southern India’s pivotal role in driving India’s economic transformation.
The report highlights that Southern India, comprising of Andhra Pradesh, Karnataka, Kerala, Puducherry, Tamil Nadu and Telangana accounts for a significant share of India’s economic output and continues to lead across manufacturing, technology, exports and innovation. The region has emerged as one of the country’s most dynamic and globally integrated economic clusters.
According to the report, Tamil Nadu and Karnataka together contribute over half of the region’s combined GSDP, anchored by Chennai’s industrial depth and Bengaluru’s global leadership in technology. Andhra Pradesh’s infrastructure-led growth driven by port development, renewable energy and new city-building positions the state for sustained expansion. Telangana has established Hyderabad as a national hub for life sciences, biotechnology and advanced digital technologies, while Kerala’s services-led economy is built around healthcare and tourism. Puducherry remains closely integrated with Tamil Nadu’s industrial and manufacturing ecosystem.
The report emphasises Southern India’s strong manufacturing base. Tamil Nadu leads in automobiles, electronics and textiles, while Karnataka has built leadership in aerospace, precision engineering and electronics. Telangana’s Genome Valley has firmly positioned the state as a pharmaceutical and life sciences hub, contributing significantly to India’s export strength.
The region’s leadership in the knowledge economy is equally pronounced. Southern India hosts a large share of India’s Global Capability Centres (GCCs), with Karnataka accounting for the highest concentration. The region also demonstrates strong entrepreneurial momentum, with southern states collectively accounting for around 30% of India’s unicorns.
The report notes that Southern India contributes nearly 38 to 40% of India’s merchandise exports, supported by robust infrastructure, including major ports, industrial corridors and integrated logistics networks. The commissioning of the Vizhinjam deep-water transshipment port further strengthens the region’s strategic trade advantage.
On the policy front, the report highlights progressive state-level frameworks aligned with the Viksit Bharat 2047 vision, strong performance on ease-of-doing-business reforms, and sustained investor interest. Karnataka, Tamil Nadu and Telangana continue to emerge as leading foreign direct investment (FDI) destinations. The region’s deep human capital base supported by premier educational and research institutions remains a critical growth driver.
Structured into four sections, the report presents a comprehensive assessment of the region’s economic landscape. It outlines priority areas for the next phase of growth, including MSME competitiveness, logistics efficiency and sustainable urban development.
As India advances towards its Viksit Bharat 2047 vision, the report underscores that Southern India will play a decisive role in powering the country’s next wave of growth through its strong industrial base, innovation-led economy and policy leadership.