Tamil Nadu is the fourth largest state of India and contributed 7.9 per cent to India's overall gross domestic product (GDP) in 2014-15. It has a diversified manufacturing sector and features among the leading states in several industries like automobiles, components, engineering, pharmaceuticals, garments, textile products, leather products, chemicals, plastics, etc. It ranks first among the states in terms of number of factories and industrial workers.
Tamil Nadu Industrial Development Corporation Ltd (TIDCO), State Industries Promotion Corporation of Tamil Nadu (SIPCOT), Tamil Nadu Industrial Investment Corporation Limited (TIIC), and Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO) are jointly developing industrial infrastructure in the state.
Between 2004-05 and 2014-15, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 12.67 per cent to US$ 161.2 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 12.94 per cent to US$ 145.9 billion.
Tamil Nadu Industrial Guidance & Export Promotion Bureau has been set up with the objective of attracting major investment proposals into Tamil Nadu.
Some of the major initiatives taken by the government to promote Tamil Nadu as an investment destination are:
- In 2015, the state government announced plans to set up four mega food parks in the state. The state government of Tamil Nadu has released an amount of US$ 5 million for this project.
- In the 2015-16 budget, the state government announced plans to invest US$ 2,253.82 million for the development of power infrastructure in the state.
- In the 2015-16 budget, US$ 13.76 million was allocated for the Information Technology Department.
- Tamil Nadu Vision 2023 envisages an investment of US$ 27.7 billion for improving highways. Chennai is slated to get 17 new projects worth US$ 334.8 million.
- The Government of Tamil Nadu has unveiled an automobile policy which would focus on future development and consolidation of the automobile and components industry, where the state enjoys a comparative advantage.
- TIDCO has proposed to set up a sector-specific SEZ for the engineering sector on about 280 acres of land, at an estimated cost of around US$ 219.0 million in Phase-1 of the project.
- TIDCO has proposed the development of solar power parks for setting up 1,000-MW solar power projects in association with public and private organisations.
- SIPCOT has planned a new industrial park spread across 1,127 acres for the development of an industrial complex at Thervoy Kandigai. Land development work has started for the same. SIPCOT has taken possession of 125 acres of land in Thiruvallur district for creation of a new complex.
- Upgradation of ~145 km road to 4 lanes has been planned to be undertaken under PPP (Public-Private-Partnership) mode. In 2015-16 budget, an amount US$ 209.35 million has been allocated for this work.
- Tamil Nadu Government has signed Memorandums of Understanding (MoUs) with five auto companies – Daimler India Commercial Vehicles, India Yamaha Motor, Ashok Leyland-Nissan, Eicher Motors and Philips Carbon Black – for an investment of up to US$ 1.7 billion in the state.
- In order to attract more investment in hardware manufacturing, the state has set up an expert committee with representatives from the industry to evaluate the potential and advise the government on the way forward.
Tamil Nadu State Presentation
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