For the past two decades, Tamil Nadu has not closed its doors to industries. After a gap of 10 years, those doors widened when the DMK came to power in May last year. From Tamil Nadu, everything from semiconductors to electric vehicle components is now reaching the world market.
DMECA, the only state in the country to operate 41 Special Economic Zones (SEZs) has signed MoUs with 132 companies after coming to power. 95,000 crores worth of investment and more than 2 lakh jobs have been created. Tamil Nadu has risen to the third position with a score of 97% in the index of business-friendly states in the country (Ease of Doing Business). By 2030, the Stalin government is moving forward with plans to attract investments of around 23 lakh crore rupees to achieve the growth target of a trillion dollar (about 80 lakh crore rupees) economy. A total of 46 lakh jobs are expected to be created.
Why invest in Tamil Nadu?
Tamil Nadu has more than 37,220 industries according to the Industries Department. Everything from vehicles to aircraft components are produced here. When the Industries Department approached the companies asking why they chose Tamil Nadu for investment, they replied that ‘the authorities are willing to listen and solve problems’. Decision on various issues including industry promotion packages is fast. The covid crisis has increased the relevance of new industries. The view that the economy should not stagnate has also increased efficiency. Also, the industrialists attest that Tamil Nadu has always maintained its competitiveness to attract industrial investments.
More and more greener industries and investments are coming to Tamil Nadu now; That is the interest now. An agreement has been reached with the big manufacturers of semiconductors, chips, mobile phone components and even electric vehicles. Apart from this, the government released the Life Science Policy and the Research and Development (R&D) Policy, which aims to attract investment of Rs 20,000 crore.
It aims to ease restrictions on life science industries and increase local production capacity and imports of pharmaceutical products and advanced medical equipment. The Life Science Policy proposes to provide capital subsidy, land etc. for setting up infrastructure facilities such as biotechnology, pharmaceutical parks, medical device factories, medical textile parks and sustainable financing for the projects.
The R&D policy recommends setting up research parks, research centers, innovation hubs etc. with the aim of increasing the number of researchers and scientists in the government and private sectors and obtaining more patents. Even small towns can become regional startup hubs through the Tamil Nadu Startup and Innovation Mission.
‘Guidance’ leapt; Stalin is ahead
The Tamil Nadu Industrial Guidance and Export Promotion Bureau has been renamed as ‘Guidance’ and has opened wide opportunities for Tamil Nadu. ‘Guidance’ is a government nodal agency established in 1992 for investment promotion and single window facility. The guidance will guide investors in easy and cost-effective ways to do business. Coordinating the entire team to achieve their goals. It works under the Industries Department. Industry Minister Thangam Thennarash and Managing Director Pooja Kulkarni are the founders of the guidance.
Chief Minister MK Stalin is at the forefront by accurately evaluating, monitoring and leading the work of each department. The guidance has facilitated investments of Rs 5 lakh crore in various sectors this year. The progress made by the state’s industrial sector has been staggering as Guidance has become an institution capable of transforming the ecosystem of Tamil Nadu to meet the needs of investors.
Development is with the people
While opening the door for development, the government is carefully watching the reactions from the people and environmental pollution. The Chief Minister is also of the position that development is not needed by clashing with the people. The government did not think much of shutting down the Tuticorin copper processing plant Sterlite and abandoning the project when the crude oil exploration company made fresh water sources and farmland useless.
When Ford decided to close the Tamilnadu plant, the government also stood by to protect the interests of the workers as much as possible. Moves to transfer Ford’s plant to another company are also active. Efforts are in progress to bring the electric vehicle manufacturing unit here.
There is a battle; But…
Tamil Nadu is doing all it can to ensure that nothing affects the revenue and development of the state even as it opposes the central government tooth and nail on various issues. Tamil Nadu, which is the second largest contributor to the country’s Gross Domestic Income (GDP), cannot be left behind by the Centre. Tamil Nadu ranks 4th in Export Capacity Index and National Logistics Index 2021. In the Business Reform Action Plan (BRAP) ranking, it has moved from 14th position to 3rd position this time.
This is how Tamil Nadu shines
Automobile
∙ One of the 10 motor hubs in the country
∙ Largest tire manufacturer in the country
∙ Production of 1.71 million cars every year
∙ 3 cars are manufactured every minute
∙ A truck is released every 2 minutes
∙ A motorbike is manufactured every 6 seconds
Electric vehicles
∙ India’s first electric vehicle was manufactured at Hyundai’s Tamil Nadu plant
∙ Electric vehicle hub based in Hosur, Dharmapuri and Krishnagiri region
∙ More people are involved in electric vehicle component manufacturing
∙ Semiconductor production to Tamil Nadu
Aerospace
∙ The country’s first defense corridor is in progress at Sriperumputhur
∙ Presence of more than 120 aviation component manufacturers
∙ Network of more than 700 component suppliers
Energy production
∙ State producing the most wind power (16 GW)
∙ 9th position in the world in wind power generation
Electronics
∙ Second position in the country in production
∙ Tamil Nadu accounts for 20% of the total electronics production in the country
∙ Special Economic Zone (SEZ) over 800 acres
*Reference – National Investment Promotion and Facilitation Agency
Content Highlight: Foreign Investment Flow into Tamil Nadu, MK Stalin