Hyderabad, March 31 (RAHNUMA): The Confederation of Indian Industry (CII) unveiled its report “Rising South: Next Wave of Growth” at the South India Annual Convention 2026, highlighting Southern India as a key driver of the country’s economic transformation.
The report underscores that the states, including Andhra Pradesh, Karnataka, Kerala, Puducherry, Tamil Nadu and Telangana, together account for a substantial share of India’s economic output, leading in manufacturing, technology, exports and innovation.
Among key contributors, Tamil Nadu and Karnataka together generate over half of the region’s combined GSDP, driven by industrial strength in Chennai and global tech leadership in Bengaluru. Andhra Pradesh is witnessing infrastructure-led growth through ports, renewable energy and urban development, while Telangana has positioned Hyderabad as a major hub for life sciences and advanced digital technologies. Kerala continues to leverage its strengths in healthcare and tourism.
The region’s manufacturing prowess remains strong, with Tamil Nadu leading in automobiles, electronics and textiles, and Karnataka excelling in aerospace and precision engineering. Genome Valley in Telangana has emerged as a major pharmaceutical and life sciences cluster.
Southern India also dominates the knowledge economy, hosting a large share of Global Capability Centres (GCCs), with Karnataka leading in concentration. The region contributes nearly 30% of India’s unicorn startups, reflecting strong entrepreneurial momentum.
On the trade front, the southern states account for nearly 38% to 40% of India’s merchandise exports, supported by robust infrastructure including major ports and logistics corridors. The commissioning of Vizhinjam International Seaport further enhances the region’s global trade connectivity.
The report also highlights progressive policy frameworks aligned with the Viksit Bharat 2047 vision, ease-of-doing-business reforms, and sustained foreign investment inflows, particularly in Karnataka, Tamil Nadu and Telangana.
CII noted that strengthening MSMEs, improving logistics efficiency, and promoting sustainable urbanisation will be critical as Southern India continues to anchor India’s next phase of economic growth.
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
