Industrial Development & Economic Growth in Tamil Nadu

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 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.46 per cent to Rs 16.06 trillion (US$ 222.58 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.45 per cent to Rs 14.41 trillion (US$ 199.69 billion).

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Tamil Nadu and Puducherry during April 2000 to March 2019 stood at US$ 29.84 billion. During 2017-18, total merchandise exports from the state stood at US$ 29.75 billion. During 2018-19, the exports stood at US$ 30.52 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:

• The State Government of Tamil Nadu is organizing the second Global Investor Meet (GIM) on January 23 and 24, 2019. The state is planning to attract investment in 12 sectors including automobile, textiles, renewable energy etc. It is expecting around Rs 3 trillion (US$ 72.75 billion) investment commitments from around the world
• The state government is planning to make Tamil Nadu a global SaaS hub. During the second Global Investors’ Meet (GIM), it is planning to attract Rs 15,000 crore (US$ 2.14 billion) in the IT and ITeS sector.
• During September - March 2018, 465,000 formal jobs were created in Tamil Nadu.*
• Tamil Nadu to get 6-8 lane expressways of 2000 km, 4 lane highways of 5000 km and all the highways to be double-lane along with paved shoulders**.
• The Tamil Nadu Government is implementing the Green Energy Corridor Project with the assistance of KfW at an estimated cost of US$ 247.25 billion for improving the transmission infrastructure in the state. As per budget 2018-19, US$ 39.88 million have been allocated for this project.
• The ‘Tamil Nadu Transmission System Improvement Project’ is being implemented at a cost of Rs 5,014 crore with the assistance of JICA for upgrading the transmission capacity of the State
• In June 2018, the State Government invested Rs 5,000 crore (US$ 745.82 million) to boost renewable energy policies, transmission infrastructure and commission a floating solar plant.
• In September 2018, Information Communication Technology (ICT) Policy, 2018 was announced by the state government for investors especially IT and ITeS companies, start-ups, MSMEs. This policy will provide incentives like administrative incentives, capital subsidies, and tax exemptions etc. to the investors.

Note: * - according to Employees' Provident Fund Organisation (EPFO) data, ** - Vision 2030

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