Trade Analytics

Industrial Development & Economic Growth in Tamil Nadu

Latest update: February, 2018

Economic Snapshot
Per capita Income


February, 2018

Tamil Nadu is the fourth largest state of India. 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 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 7.87 per cent to US$ 207.79 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 8.41 per cent to US$ 185.26 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 the 2017-18 budget, the state government announced plans to invest US$ 2.64 billion for the energy sector in the state.
  • The Government of Tamil Nadu is planning to increase the automobile manufacturing capacity to 5.8 million units by 2020.
  • The government is continuously working on developing strong IT infrastructure in order to support the development of hardware and software industries. In the 2017-18 budget, US$ 18 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.
  • As per the 2017-18 budget, an amount of US$ 1.61 billion has been allocated to the Highways department. The Government will undertake construction of bridges with NABARD assistance worth US$ 32 million during 2017-18.
  • 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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Tamil Nadu Map

Tamil Nadu