Addressing the birth centenary celebrations of former chief minister and AIADMK founder M G Ramachandran, Palaniswami said,"while at the national level it is only at 24.5 per cent, in Tamil Nadu it is at 44.3 per cent."
He said Tamil Nadu was the only state to allocate more funds for the education sector.
Speaking to reporters later, he exuded confidence that "good thing" will happen on the issue of getting exemption for the state from the National Eligibility cum Entrance Test.
Responding to her remarks, Health Minister C Vijayabaskar had said an ordinance in this regard would be submitted to the Centre.
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The development comes after Palaniswami, state ministers and Lok Sabha Deputy Speaker M Thambidurai had multiple meetings with Prime Minister Narendra Modi and other central ministers over NEET.
Responding to a query on the topmost priority of his administration, Palaniswami said for the development of a state, agriculture and industry were like "two eyes".
Noting that drought was one of the most important issues of the state, Palaniswami said, "we are seeing drought which was not experienced in the last 140 years."
"Due to drought, there is also not sufficient rainfall and these factors have led to water scarcity.AIADMK government has been taking steps to address the issue," he said.
On why actor Kamal Haasan was posting a series of tweets reportedly attacking him, Palaniswami said, "you have to ask only him".
Yesterday, the actor had virtually sought Palaniswami's resignation over alleged corruption.
Palaniswami said, the year long celebrations was being conducted commemorating birth centenary of M G Ramachandran, as per the vision of the former AIADMK supremo Jayalalithaa.
"So far it has been conducted successfully in six places across the State," he said.
The chief minister also inaugurated a Rs. 260 crore Joint Drinking water project for Cuddalore district.
Cuddalore port will be upgraded at the cost of Rs.115 crore, he said, adding, check dams will be set up in all districts at a cost of Rs.355 crore.
Several AIADMK Ministers including School Education Minister K A Sengottaiyan and Cooperative Minister Sellur K Raju participated, sources said.