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About Tamil Nadu: Tourism, Industries, Economy, Agriculture, Climate, Geography

February, 2018

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.

Key Sectors:

  • Accounting for about 34.35 per cent share in the overall spun yarn production of the country during 2015-16, spun yarn production in Tamil Nadu stood at 0.97 million kg, by the end of September 2015.
  • Tamil Nadu has 21.20 per cent share in overall automobile exports from India. The state accounted for a 15.80 per cent share in domestic production and 14.90 per cent share in domestic sales of the automobile sector in the country.
  • The Government of Tamil Nadu announced plans to invest US$ 607 million over next two years for the development of heavy engineering sector of the state.
  • Tamil Nadu had 16 operational SEZs for IT/ITeS as of July 2016. Tamil Nadu has about 350,000 people directly employed in IT and ITeS companies, while 750,000 through indirect employments. The number of registered IT units in the state increased from 1,114 in 2004-05 to 1,780 in 2014-15.
  • As of 2015, cement production in the state was 30 million tonnes, whereas capacity utilisation rate was at 61 per cent. The production of ready-mix concrete is a major activity of the cement industry in the state.
  • During 2015-16, financial assistance of US$ 7.94 thousand was provided to the entrepreneurs under the plan scheme for technological up-gradation, establishment and modernization of food processing industries.
  • The Government of Tamil Nadu has set up industrial estates and common effluent treatment plants for the leather cluster.
  • Tamil Nadu plans to add 5,000 MW capacity in the wind power by the end of 2017. Global Wind Energy Council is also working to assess the potential of wind energy in India with special emphasis on Tamil Nadu.
  • During 2015-16, the work on the project of “Infrastructure Development Investment Programme for Tourism”, which has been taken up at a cost of US$ 20.62 million, was under process.  

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