Tamil Nadu is the fourth largest state of India. Located in the southernmost part of the country, Tamil Nadu is surrounded by Andhra Pradesh from the north, Karnataka and Kerala from the west, Indian Ocean from the south, and Bay of Bengal from the east.
Gross state domestic product (GSDP) of Tamil Nadu grew at a compound annual growth rate (CAGR) of 12.31 per cent between 2004-05 and 2015-16, reaching US$ 175.33 billion in 2015-16. Per capita GSDP of the state was US$ 2,430.5 (at current prices) in 2015-16.
Tamil Nadu has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto 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.
Due to its achievements as an auto production hub, Chennai has been dubbed as the "Detroit of India". Tirupur and Coimbatore are the major textile centres in Tamil Nadu. Tirupur is known as the ‘Knitting City’, while Coimbatore is called the ‘Manchester of South India’. Close proximity with East Asian countries is also enabling Chennai to become an international finance hub.
Tamil Nadu has a well-developed infrastructure with an excellent road and rail network, three major ports, 23 minor ports, and seven airports across the state providing excellent connectivity. As of June 2016, Tamil Nadu had a total installed power generation capacity of 26.25Gigawatt (GW).
In line with Vision 2023, it aims to step up infrastructure investment from 4-5 per cent of GSDP currently to 10 per cent by 2015 and about 11.5 per cent by 2019. The Tamil Nadu government is also holding discussions with various industry bodies to frame a start-up policy.
According to the DIPP, cumulative FDI inflows in Tamil Nadu during April 2000 to March 2016 stood at US$ 21.54 billion.