Tamil Nadu has a diverse manufacturing sector and is a national leader in a number of sectors, including engineering, pharmaceuticals, apparel, etc. In terms of the number of factories and industrial workers, it is ranked first among all the states.
Tamil Nadu is the fourth-largest state of India. Located on the southern coast of India, Tamil Nadu is surrounded by Andhra Pradesh on the north, Karnataka and Kerala on the west, Indian Ocean on the south, and Bay of Bengal on the east.
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 the number of factories and industrial workers.
At current prices, Tamil Nadu’s gross state domestic product (GSDP) is estimated to be Rs. 24.85 trillion (US$ 320.27 billion) in 2022-23. The state’s GSDP increased at a CAGR of 11.27% between 2015-16 and 2022-23.
In 2020-21, the tertiary sector contributed 54.33% to the state’s Gross State Value Added (GSVA) at current prices, followed by the secondary sector at 32.72%.
According to Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019-December 2021, FDI inflows in Tamil Nadu stood at US$ 5,707.82 million. The state ranked 5th in India in terms of FDI inflows.
In September 2021, the UAE-based DP World announced an investment of Rs. 2,000 crore (US$ 271.68 million) to establish numerous projects in Tamil Nadu. These projects include a container terminal, cold storage and seafood processing zone, free trade zone with an integrated rail siding, minor port in the Eastern Coast of Tamil Nadu and inland container depots in Erode, Karur and Tiruppur.
In July 2021, Tamil Nadu exchanged 35 memorandums of understanding (MoUs) with a cumulative investment of Rs. 17,141 crore (US$ 2.33 billion) and employment opportunities for 55,054 people. These investments are in the fields of power plants, electronics, auto components, industrial parks, IT/ITeS services, food processing, footwear, pharmaceuticals, and textiles.
Between the second quarter and third quarter of FY21, the state received new investments of ~Rs. 61,000 crore (US$ 8.3 billion). Of this, some key private investments included Rs. 4,629 crore (US$ 631 million) solar photovoltaic modules project by SunEdison Energy India; Rs. 2,500 crore (US$ 341 million) lithium-ion batteries project in Tiruvallur by Lucas-TVS, and a Rs. 2,300 crore (US$ 314 million) plant being set up by Daimler India Commercial Vehicles at Oragadam.
Total merchandise exports from the state stood at US$ 31.52 billion in FY22 (till February 2022).
Tamil Nadu has a well-developed infrastructure with an excellent road and rail network, three major ports, 15 minor ports, and eight airports across the state providing excellent connectivity. As of March 2022, the state had a total installed power generation capacity of 35.14 GW.
Note: P - Provisional, ** - of 170 kgs each, E - Estimated