Thoothukudi is traditionally known for its pearl fishery and shipbuilding. Thoothukudi became the centre of the Indian independence movement in the early 20th century, with such leaders as the poet Subramanya Bharathy, Kattabomman, and V.O. Chidambaram Pillai. In 1906, the freedom fighter V. O. Chidambaram Pillai, with the help of Bal Gangadhar Tilak, launched the first Swadeshi ship "S.S. Gaelia" from this port town in British India.

The major harbour of Thoothukudi is well known as a pearl diving and fishing centre. Thoothukudi, one of the oldest sea ports in the world, was the seaport of the Pandyan kingdom after Korkai and later was taken over by the Portuguese in 1548, captured by the Dutch in 1658, and ceded to the British in 1825. (Courtesy - The Columbia Encyclopedia, Sixth Edition, 2001). The lighthouse built in 1842 marked the beginning of the history of Thoothukudi harbour development.