vision tamil nadu

The Associated Chambers of Commerce and Industry of IndiaASSOCHAM Corporate Office:

1, Community Centre, Zamrudpur, Kailash Colony, New Delhi – 110048Tel: 011 46550555 (Hunting Line) • Fax: 011 46536481/82, 46536498

Email: [email protected] • Website: www.assocham.org

Vision Tamil NaduBuilding Sustainable Tomorrow

ASSOCHAM Corporate Office: 1, Community Centre Zamrudpur, Kailash Colony, New Delhi - 110 048Tel: 46550555 (Hunting Line) • Fax: 46536481-82, 46536497-98 • E-mail: [email protected] • Website: www.assocham.org

The AssociATed chAmbers of commerce And indusTry of indiA

d. s. rAwATSecretary General, ASSOCHAM

messAGe

“Investment is attracted, not invited.”

I am glad to note that the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is organizing an Investment Promotion Seminar on “Vision Tamil Nadu – Building Sustainable Tomorrow – The Banking Perspective” on 04th July, 2012 in Chennai.

Tamil Nadu, as we all know is a progressive state and is considered as an Investment Destination. Globalization of Market and a buoyant economy have given tremendous impetus to the industrial growth in the State. Tamil Nadu has competitive advantage in terms of natural reservoir, strategic location, basic infrastructure as well as large skilled, educated, young, workforce. Besides, the state has investor-friendly policy environment which facilitate tremendous scope for investment.

To give a holistic overview of the areas of potential investment in Tamil Nadu, ASSOCHAM has brought out the study, which carries a long term vision for growth and development in the State.

I am sure this study will give rich insight and adequate knowledge to all the stakeholders.

I congratulate my colleague Mr. U.K. Joshi, Director and his team for this remarkable initiative. I would also extend my greetings to all the participants for their support to make this summit a grand success.

I wish the summit a great success.

(D.S. Rawat)

● State Profile - Tamil Nadu ..............................................................................................................................1

• Tamil Nadu Economy - An Overview ...............................................................................................................1

- Selected Economic Indicators ..................................................................................................................1

- Economic Growth Trends ........................................................................................................................1

- Sectorial Contribution to GSDP ...............................................................................................................3

- Key Cities and Industries .........................................................................................................................4

- Institutional Finance ................................................................................................................................5

- Structure of Infrastructure ......................................................................................................................7

- Soft Infrastructure ...................................................................................................................................7

- Hard Infrastructure ..................................................................................................................................8

• Industrial Policy Environment .........................................................................................................................9

- State Industrial Policy Environment ........................................................................................................9

- Industrial Investment Trends .................................................................................................................11

- Foreign Direct Investment (FDI) Equity Inflows .....................................................................................12

- Government Initiatives and Incentives ..................................................................................................12

- Incentives for Special Economic Zones ..................................................................................................14

● Vision 2023 ................................................................................................................................................. 15

• Vision 2023 to Transform Industrial and Services Sectors ............................................................................15

● Key Industries .............................................................................................................................................. 18

• Automotive Industry .....................................................................................................................................18

- Detroit of India - The Automotive Industry of Tamil Nadu ....................................................................18

• Textiles Industry ............................................................................................................................................19

- The Sunrise Sector - The Textiles Industry of Tamil Nadu ......................................................................19

- Textiles Policy ........................................................................................................................................21

• Information and Communications Technologies Industry ............................................................................21

- Building the Right Connections - Tamil Nadu’s ICT Industry ..................................................................21

• Leather Industry ...........................................................................................................................................22

• Agrobased Industries ....................................................................................................................................23

• Chemicals and Pharmaceuticals Industry .....................................................................................................24

- Chemicals, Petrochemicals, Pharmaceutical and Biotechnology Industries of Tamil Nadu - The Healing Touch............................................................................................................24

● Future Growth Prospects ............................................................................................................................. 25

• Industrial Growth and Investment Opportunities ........................................................................................25

An Article“Envisioning Tamil Nadu - The Ultimate Destination” U.K. Joshi, Director, ASSOCHAM .......................................30

TAble of conTenTs

1Vision Tamil Nadu – Building Sustainable Tomorrow

State Profile - tamil Nadu

tamil Nadu economy - an overview

selected economic indicators

Tamil Nadu is the 11th largest and the seventh most populous state in India, and second most economically important state in Southern India. Bordered by the Bay of Bengal on its east, it has the second largest coastline in India with a length of 1,076 km and is an important center for sea trade and has a national highway of 2,002 km in length. Chennai, is the capital city and a strategic point for trade and an important port. Along with a vibrant manufacturing sector, the state leads the country in IT, being the second largest software exporter, and healthcare services, being the chosen location for medical tourism in India.

Snapshot of Key Indicators, Tamil Nadu, 2011

Indicator Unit Tamil Nadu IndiaGSDP contribution to GDP (2010-2011) % 7.7 100.0Average Growth rate (2001 to 2011) % 8.0 7.4Per Capita Income at current prices (2009-10) INR 84,058 60,972Literacy Rate (2010-2011) % 80.3 74.0Installed Power Capacity (Till 31.12.11) MW 16,060.0 186654.62National Highway Length (2010) KM 2002 70934Airports (2011) Number 5 133Ports Number 20 190 Note: GSDP: Gross State Domestic Product, GDP: Gross Domestic Product, MW: Mega-Watt

Source: Frost and Sullivan analysis

economic Growth Trends

Tamil Nadu is one of the most developed states in India. Its value of economic activity, the GSDP, stands at INR 4.28 lakh crore, making it the second largest state economy after Maharashtra. Tamil Nadu is characterized as a state with high per capita income and an increasing standard of living. It is an important hub for manufacturing industries, especially automotive, textiles and software. Tamil Nadu, at 15.1 percent, accounts for the largest number of Micro, Small and Medium Enterprises (MSMEs). A slew of incentives from the Government with respect to investment and good infrastructure have helped the industrial and the ICT services sector.A state with financial soundness;INR 536.54 crore of

Vision Tamil Nadu – Building Sustainable Tomorrow2

revenue surplus was recorded for 2011-12 and INR 2,376.07 crore of revenue surplus is likely to be recorded during 2012-13.

Total Gross State Domestic Product (GSDP) at Current prices and Growth Rate, Tamil Nadu, 2004-05-2011-12

Note: GSDP: Gross State Domestic Product, GDP: Gross Domestic Product. Source: Frost and Sullivan analysis

An industrialized state, Tamil Nadu has shown consistent performance over the last decade. It has grown at an average annual growth rate of 10.3 percent between 2004-05 and 2011-12. Tamil Nadu’s growth rate has been above that of India’s averaged growth rate. It has grown at a faster rate than the other industrialized states of India such as Gujarat, Andhra Pradesh and Maharashtra. An investor friendly state with the government formulating policies for the development of the various industries such as the IT, automotive industries etc., Tamil Nadu will continue to remain in the top rung of the country in the next decade.

Comparison of Growth Rates, State wise, 2011-2012

State Growth Rate (%)Bihar 13.1Delhi 11.3Chhattisgarh 10.8Tamil Nadu 9.4Maharashtra 8.5Gujarat 9.1Andhra Pradesh 6.8Note: The growth rate for Maharashtra is an estimate

Source: Ministry of Statistics, India and Frost and Sullivan analysis


Per Capita Income, Tamil Nadu and India, 2004-05-2010-11

Year Tamil Nadu (INR ) India (INR )2004 -05 30,062 24,1432005 -06 35,243 27,1232006 -07 42,288 31,1982007 -08 47,606 35,8202008 -09 54,140 40,6052009 -10 63,547 46,4922010 -11 72,993 54,8352011 -12 84,058 60,972

Source: Press Information Bureau, Government of India and Frost and Sullivan analysis

The per capita income of Tamil Nadu has shown a CAGR of 15.9 percent between 2004 and 2011. The per capita income of the state has consistently been greater than the national per capita income on account of higher growth rates of the economy. A robust, well performing and steadily growing economy has resulted in Tamil Nadu performing better than India’s average performance. Its per capita income growth in 2010 - 11 and 2011 - 12, at 11.2 and 8.7 percent respectively, has been the fifth highest in the country and highest among the more industrialized states.

sectorial contribution to GsdP

Tamil Nadu is mainly driven by the services sector. The agriculture sector has been decreasing in importance while the manufacturing industry has retained its position. This has resulted in the services sector gradually taling center stage. With incentives such as industrial parks and tax exemptions being offered as per Vision 2023 and policies introduced, the manufacturing industry is expected to contribute to a greater extent to the GSDP in the next decade. One of the targets of the Vision 2023 is to increase the contribution of the manufacturing sector from the present 17.0 percent to 23.0 percent by 2023.

Sectorial Contribution to GSDP, Tamil Nadu, 2004-05-2009-10

Source: Reserve Bank of India and Frost and Sullivan analysis


The industrial component in the GSDP is mainly driven by manufacturing with mining and quarrying and electricity, gas and water supply contributing in small quantities. Automotive and textiles industries are the most important under manufacturing. Tamil Nadu has the largest automotive production capacity in the country and major automotive companiesare located here.

Trade, hotels and restaurants are the biggest contributors to the services sector. Financial services have mushroomed and penetrated well. With infrastructure receiving a boost from the Government, the construction industry holds itself strongly along with the communications industry.

Components of the Services Sector, Tamil Nadu, 2010 - 11

Source: Reserve Bank of India and Frost and Sullivan analysis

Key cities and industries

Key Cities, Tamil Nadu, 2011

City Key IndustriesChennai Software , Automotive and Leather industriesCoimbatore Textiles and Engineering goods industriesTrichy Textiles and Engineering goods industriesMadurai Chemicals, Glass ceramics and Leather industriesKancheepuram Textile industry



Key Industrial Clusters, Tamil Nadu, 2011


institutional finance

Tamil Nadu has a well developed banking system with immense potential. As of 2010 it comprised approximately 7.5 percent of India’s total bank offices. The population served per bank office is 10,043 as compared to the national figure of 12,247.

Key Banking Indicators, Tamil Nadu, 2008-2010

Indicator Tamil Nadu

Number of bank offices 6,214

Population served per bank office 10,043

Aggregate bank deposits (As of March 2010) INR 2,85,337 crore


Gross bank credit (As of March 2010) INR 3,21,418 crore

Credit deposit ratio (As of Septenber 2010) 113.6%Loan provided to the Small Scale Industries by the scheduled commercial banks (2008–09)

INR 26,465 crore

Credit provided to SMEs (As of March 2010) INR 40,708.11 crore

Total micro-credit provided (As of March 2010) INR 2,788.33 croreSource: Government of Tamil Nadu and Frost and Sullivan analysis

Percent Distribution of Credit Limit for the Various Sectors by the Scheduled Commercial Banks, Tamil Nadu, 2009.

Source: Government of Tamil Nadu and Frost and Sullivan analysis

The total credit limit by scheduled commercial banks identified is INR 399,059.28 lakh for the major sectors. Industry has been the focal point of credit disbursement, amounting to INR 155,776.94 lakh for 2009.


Percent Distribution of Credit Limitfor Different Industries by the Scheduled Commercial Banks, Tamil Nadu, 2009.

Note: Others include beverages and tobacco, paper, paper products and printing, wood and wood products, gems and jewellery, rubber and plastic products, petroleum, coal products and nuclear fuels, and cement and cement products, etc.


structure of infrastructure

Tamil Nadu is ahead of most other states in the country in the provision of both physical and non-physical infrastructure. Strong presence of the government in the provision of infrastructure facilities such as well developed ports, roads, communication etc. as well as the encouragement given to the private sector to participate in the building of infrastructure have led to increased opportunities in the state. The importance of infrastructure in the budget has almost doubled since 2005-06. Public-Private Partnerships (PPPs) have created a positive business and regulatory environment in the state and it has helped to improve infrastructural facilities in the state. A number of infrastructural projects such as the LNG import terminal at Ennore, the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) etc. have been implemented to attract foreign investment. Japanese companies have invested around INR 15,000 crore in a township set up near Mahabalipuram.

soft infrastructure

Tamil Nadu has strong socio-economic indicators reflective of a state focus on human development. Tamil Nadu performs better then the Indian average in most indicators. Tamil Nadu has continually invested in health and education.A total of INR 5,569.28 crore has been budgeted for the health sector


in the 2012-13 budget. INR 750 crore has been sanctioned for the Comprehensive Health Insurance Scheme in this budget. From INR 4,110 crore in 2005-06, the allocation for education has gone up to a record high of INR 14,552.82 crore in the 2012-13 budget. The Health and Family Welfare schemes were sanctioned INR 1,733 crore in 2005-06 and this had increased to INR 4,554 crore in 2011-12.A total of INR 30,331 crore have been allocated for social security net and various welfare schemes.

Key Socio-Economic Indicators, Tamil Nadu and India, 2009-2011

Indicator Year Tamil Nadu India Expected Trend in Tamil Nadu

Literacy Rate (%) 2011 80.3 74.0 Increase

Sex Ratio (Females per 1000 males) 2011 995 940 Increase

Crude Birth Rate 2010 15.9 22.1 Decrease

Crude Death Rate 2010 7.6 7.2 Stable

Infant Mortality Rate 2010 24 47 Decrease

Total Fertility Rate 2010 1.7 2.5 Decrease

Population below poverty line (%) 2009 -10 17.1 29.8 DecreaseSource: Planning Commission and Frost and Sullivan analysis

hard infrastructure

Tamil Nadu has a well-developed system of roads, railways, ports, power, communication etc. All villages in the state are fully electrified. It has 3 major and 17 non-major ports. Chennai, Tiruchirapalli, Madurai, Coimbatore and Tuticorin have domestic airports while Chennai also has an international airport.

Selected Infrastructural Indicators, Tamil Nadu, 2009-2011

Indicator Value

Total available length of roads (2009) 1,94,087 km

Density of road network (Tamil Nadu) 311 km per lakh population

Density of road network (India) 329 km per lakh population

Installed generational capacity (2009) 15,100 MW

Wind energy generational capacity (2009) 4,310.6 MW

Total length of railway track 5,952 km

Number of railway stations 532Source: Government of Tamil Nadu and Frost and Sullivan analysis


Government Sanctions of Upcoming Infrastructural Projects, Tamil Nadu, 2012-13


industrial Policy environment

state industrial Policy environment

Tamil Nadu has implemented important policies to facilitate increased investment in industries. The policies are investor friendly and focus specially on the manufacturing, giving the sector the much required thrust; the main aim of the policy being to maximize investments, output, growth, employment and manufacturing competitiveness of the industries.Tamil Nadu has not been able to attract the desired high levels of FDI and the industrial policies foster steps to increase the amount of FDI in the state. The policies cover various industries such as the ICT industry, biotechnology, micro, small and medium enterprises etc. The policy environment in the state is conducive for healthy growth in the industrial sector.


Major State Industrial Policies, Tamil Nadu, 2012


Summary of the Key Industrial Policies, Tamil Nadu, 2007-2011

Policy DescriptionTamil Nadu Industrial Policy (2007)

• The main aim of the policy was to maximize the investments, output, growth, employment and manufacturing competitiveness of the industries.

• In a policy update for 2012-13, the Government of Tamil Nadu has announced policies to provide further support such as incentives in the form of tax exemptions and subsidies, to the industries.

• The new sets of policies announced are Tamil Nadu Industrial Policy, 2012, Tamil Nadu Biotechnology Policy, 2012, Tamil Nadu Aerospace Industrial Policy, 2012, Tamil Nadu Automobiles and Auto Components Industry Policy, 2012 and the Tamil Nadu Land Acquisition Policy for Industries, 2012. It is expected the manufacturing sector will attract INR 20,000 crore of investment by 2013.

ICT Policy (2008)

• This policy aimed at making Tamil Nadu the ICT hub of South Asia. The target was to capture 25.0 percent of the India’s ICT industry production by 2011.

• The new schemes implemented for 2012-13 are an electronic dictionary with pronunciation, syntactic and semantic annotations for Tamil literature, Tamil commuting lab and software repository tool.


Tamil Nadu Biotechnology Policy

• The biotechnology policy was aimed at increasing the prominence of the biotechnology related industries in the mainstream. The four important areas are medicine/ human and animal healthcare, agriculture - food, environment and industrial products.

Tamil Nadu Minor Port Policy

• The Minor Port Policy was introduced in 2007 to expand and develop all the ports along with upgrading in terms of cargo handling, container terminals, port layouts and allied infrastructure.

Tamil Nadu MSME Policy (2008)

• The Micro, Small and Medium Enterprises policy aimed at sustaining the annual growth rate of the sector over 10.0 percent. This came after the enactment of the Medium, Small and Micro Enterprise Development Act, 2006.It also aimed at promoting 10 lakh direct and indirect employment during the Eleventh Five Year Plan period.

• As a policy update for 2012-13, the Government has sanctioned an amount of INR 50 crore for the strengthening, re-vitalizing and transforming of the District Industries Centers.

• A new scheme called NEEDS (New Entrepreneur-cum-Enterprise Development Scheme) has been introduced to help first generation entrepreneurs. INR 100 crores as capital subsidy and other assistance has been provided to this scheme under the 2012-13 Budget.

• 20 industrial clusters are expected to be implemented in 2012-13.

• Various levels of subsidies have been provided for the MSMEs under the policy update for 2012-13.


industrial investment Trends

Tamil Nadu lags behind most of the faster growing states with respect to the industrial investment proposals. But while Andhra Pradesh, Chattisgarh, Gujarat, Karnataka and Maharashtra has witnessed a fall in the proposals in 2011, Tamil Nadu has witnessed a surge in the proposals in 2011. This is an indication of good governance and a leap in confidence of the investor. With many more policies and schemes being launched, the momentum is expected to continue in the state.


Industrial Investment Proposal, Selected States, 2008-2012

State 2008 2009 2010 2011 2012* Tamil Nadu 24,506 67,224 38,595 73,348 6,585Andhra Pradesh 1,32,289 1,04,998 1,76,245 1,03,966 33,973Chhattisgarh 2,21,863 1,30,630 2,85,583 1,02,266 20,153Gujarat 1,25,376 1,42,239 1,49,718 1,42,680 20,258Karnataka 1,42,284 92,054 1,40,289 94,147 14,079Maharashtra 92,287 68,073 1,76,259 1,33,730 12,339Orissa 2,53,201 1,67,932 3,15,772 3,21,032 49,527Note: All values are in INR crore. *Values are till March 2012.

Source: Department of Industrial Policy and Promotion, India and Frost and Sullivan analysis

Foreign Direct Investment (FDI) Equity Inflows

While Maharashtra leads the country in attracting FDI, Tamil Nadu has turned out to be an important hub for FDI. It has attracted FDI at a faster rate than Andhra Pradesh and Gujarat. Tamil Nadu has set up industrial parks and SEZs and offers tax incentives. In the manufacturing industries based in the SEZs, 100.0 percent FDI is allowed. With a good influx of talented human resources, Tamil Nadu has been able to attract incentives.

Foreign Direct Investment (FDI) Equity Inflows, Selected States, 2009-10-2011-12

State 2009-10 2010-11 2011-12 Maharashtra 39,409 27,669 44,664Karnataka 4,852 6,133 7,235Tamil Nadu 3,653 6,115 6,711Andhra Pradesh 5,710 5,753 4,039Gujarat 3,876 3,294 4,730Total 1,23,120 88,520 1,73,946Note: All values are in INR crore. Maharashtra includes Dadra & Nagar Haveli and Daman & Diu

Source: Department of Industrial Policy and Promotion, India and Frost and Sullivan analysis

Government initiatives and incentives

Apart from policies, the Government has taken several other initiatives such as participating in Public-Private Partnerships (PPP) and setting up of Special Economic Zones (SEZ) to spur growth of different industries and increase business opportunities. A few PPP organizations formed in the State are:


• Tamil Nadu Water Investment Company (TWIC)

• Tamil Nadu Road Development Company (TNRDC)

• Tamil Nadu Urban Development Fund (TNUDC)

• Ennore Port SEZ

The various initiatives undertaken by the Tamil Nadu Government to promote different industries are:

• State Industries Promotion Corporation of Tamil Nadu (SIPCOT) - SIPCOT Industrial Parks are present in multiple areas and host industries such as engineering, electronics, chemicals, food processing, and automotive, etc. The SEZs under SIPCOT are the Hi-tech SEZs in Kancheepuram, Sriperumbudur, and Oragadam, Leather sector SEZ, Footwear SEZ, Engineering product SEZ, Transport engineering goods SEZ, and Ganite SEZ.

• Tamil Nadu Industrial Development Corporation (TIDCO) - TIDCO has more than 85 prolects with a total equity investment of INR354 crore. It covers industries such as iron and steel, fertilizers, chemicals, petrochemicals, engineering, automotive, electronics and communication, agro and food processing, leather etc. The upcoming SEZs under TIDCO are Pearl City Food Court, Ennore SEZ, Hosur SEZ, IT and ITES SEZ – TIDEL II & III, and TIDEL Park Coimbatore Limited, etc.

• Electronics Corporation of Tamil Nadu Limited (ELCOT) -Completely owned by the government, it is the nodal agency for all Information and Communication Technology Projects for the Government of Tamil Nadu. Sholinganallur IT-ITES SEZ, Coimbatore, Hosur, Madurai, Tiruchy, Salem and Tirunelveli SEZs fall under the jurisdiction of ELCOT.

• Tamil Nadu Industrial Investment Corporation Limited (TIIC) - It is a financial institution to amplify industrial development in the State and provides financial assisstance to MSMEs, professionals and transport operators.

• Tamil Nadu Small Industries Development Corporation Limited (TNSIDCO) - Owned by the Government, its role is to promote and develop small scale industries and develop backward and underdeveloped cities.

• Tamil Nadu Minerals Limited - This is owned by the Government and works in the area of exploitation, processing, and marketing of granite and other minerals.

• Madras Export Processing Zone (MEPZ) - It was set up to promote FDI, enhance foreign exchange earnings and create employment opportunities. It receives incentives from the Government in the form of infrastructural facilities such as uninterrupted power and water supply etc.

• Industrial corridors such as the Chennai-Bangalore Industrial Corridor, Chennai-Madurai-Tuticorin-Tirunelveli corridor and the Coimbatore-Salem corridor to promote industries.


incentives for special economic Zones

Existing and Planned Special Economic Zones are speread across the State covering sectors such as IT/ITES, Agro and Food Processing, Marine Biotechnology, Pharmaceuticals. SEZs are expected to play important role in strenghthening industrial infrastructure in the State in the next decade.

Incentives for SEZs, India and Tamil Nadu, 2011



ViSioN 2023

Vision 2023 to Transform industrial and services sectors

The Vision 2023 outlines the plan for Tamil Nadu for the next decade. The vision is to build Tamil Nadu into the most prosperous and progressive state in India and identify infrastructure avenues to further develop the state. The targets of the Vision 2023 include

(a) an increase in per capita income of the state by six times from the current level

(b) an economic growth rate of 10.9 percent between 2012 and 2023, with manufacturing growth projected at 13.8 percent and services sector growth at 11.1 percent during the same period

Vision Themes of Vision 2023, Tamil Nadu, 2012-2023



Various strategic initiatives have been undertaken to realize these visions, such as:

Increasing the share of manufacturing in the State’s economy - The manufacturing industry plays an important role with the automotive and textile industries being the most important. It contributes an enormous 96.7 percent to the industry sector. The share of the manufacturing industry to the total GSDP is expected to go up to 23.0 percent by 2023 from the current 17.0 percent. Providing further incentives to this industry will offer good opportunities for automotive, textiles, pharmaceutical, agro-processing etc. industries to grow faster.

Making SMEs vibrant - With SMEs becoming more important and a viable option for stabilizing fluctuation in growth, it becomes important to support SMEs with policies such as providing subsidies, and tax exemptions, etc. Tamil Nadu has about 7.60 lakh registered MSMEs, with a total investment of around INR 39,438 crore providing employment to 52.99 lakh people.

Making Tamil Nadu the knowledge capital and innovation hub of the country - This is very important in being able to move up the value chain in the production process and increase earnings from sector.

Specialization in services offering - The share of the services sector is the largest, at 73.8 percent, and this share has gradually been increasing, from 69.4 percent in 2004-05. Back office services, healthcare, audio and video production and post-production processes and tourism are the services that will receive the maximum attention and develop further in the next decade.

Thrust on skill development -The state produces more than a lakh engineering graduates every year.Continued importance on skill development would serve to increase the resource base of the State, and help increase the growth opportunities. INR 75 crore has been sanctioned by the Government for skill development through different departments in the 2012-13 Budget.

Total Investment Targets, Tamil Nadu, 2012-2023

Sector Investment Requirement (INR , Crore)Energy 4,50,000Transport 3,70,000Industrial and Commercial 1,60,000Urban Infrastructure 2,75,000Agriculture 40,000Human Development (Health and Education) 30,000General and social infrastructure projects 1,00,000Capital improvement to existing projects 75,000Total 15,00,000



Vision Themes and Major Infrastructure Projects, Tamil Nadu, 2012-2023

1. Develop world class Centers of Excellence in at least 10 areas that act as nuclei of innovation. Focus areas include

a. Automotive technologies

b. Solar and clean energy technologies

c. Biotechnology

d. Agricultural practices

e. Water resources management

f. Construction management

g. Lifestyle diseases

h. Aerospace

i. Basic sciences

j. Nano technology

k. Social sciences

2. Set up two medical cities in southern and western Tamil Nadu

3. Development of industrial corridors between Chennai - Hosur, Chennai – Tiruchirapalli, Coimbatore – Madurai, Coimbatore - Salem and Madurai – Thoothukudi

4. High speed broadband connectivity to reach every village

5. Two supercritical and other power projects of cumulative 20,000 MW capacity

6. Gas grid connecting 10 large cities

7. 2,000 km of 6/8 lane highways

8. Double water storage capacity across the State

9. High speed rail connecting Chennai - Coimbatore - Madurai - Kanyakumari

10. Three greenfield ports and 5 minor ports with total cargo handling capacity of 150 million tons per annum

11. Greenfield airport near Chennai with an annual capacity of at least 40 million passengers



Key iNduStrieS

Automotive industry

Detroit of India - The Automotive Industry of Tamil Nadu

The automotive industry is the backbone of the manufacturing industry in Tamil Nadu. Tamil Nadu also provides state-of-the-art port facilities which helps immensely in trade and acquiring of raw materials. Due to human resources and infrastructure advantages Tamil Nadu has emerged as the leading investment destination for automotive and auto parts manufacturers.

Profile of the Automotive Industry, Tamil Nadu, 2011


Vehicles

The major players in the industry who have their manufacturing bases in Tamil Nadu are Ford, Hyundai, BMW, Renault, Nissan and Mitsubishi HM. Chennai is the manufacturing and export hub for Hyundai’s small carHyundai’s i10 and i20 models are manufactured only in India and are then exported to the rest of the world. Hyundai, Nissan and Ford have found Tamil Nadu to be the most cost effective location for manufacturing cars.


Auto Components

Tamil Nadu is also an important hub for the auto components industry. It holds almost a 35.0 percent share in the total Indian auto components market. The manufacture of auto components grew at 1.5 percent during 2010-11. The major players in this market are Visteon, Delphi, Robert Bosch, and Lera, etc. and three Indian industrial groups, namely, TVS, Rane and Amalgamations.

Auto Policies and Government Initiatives

The Ultra Mega Integrated Automobile Projects Policy, implemented in 2007, provided the industry with the much required impetus for growth by providing various incentives such as land allotment at concessional prices, 100.0 percent exemption from stamp duty, exemption from electricity tax for 10 years, exemption from entry tax, VAT on capital goods, work contract tax, Octroi, other state levies, etc. Additionally, 100.0 percent FDI is allowed in manufacturing industries based in SEZs. This gives a huge boost to the auto manufacturing industry. Tamil Nadu hosts more than 350 auto components suppliers and accounts for around 40.0 percent of India’s production capacity. The Super-mega Policy provides special incentive to projects with investments in the range of INR 1,500 to 4,000 crores. With the implementation of the National Automotive Testing R&D Infrastructure project (NATRIP), Chennai will have world-class automotive safety, emission and performance standards.

Nissan-Renault, Peugeot, BMW, Hyundai, Tata Auto Components have major expansion plans over the next two - three years. With manufacturing sector oriented policies under Vision 2023, Tamil Nadu is expected to cement its position as the leading auto manufacturer in the country in the next five years.

Textiles industry

The Sunrise Sector - The Textiles Industry of Tamil Nadu

Tamil Nadu’s textiles industry comes a close second to the automotive industry under the State’s manufacturing industries. The city of Tiruppur is considered the “Manchester of South India”. Tamil Nadu is the world’s third largest producer of cotton and the fifth largest producer of man-made fiber and yarn. This sets apart Tamil Nadu in the textiles market and combined with the fact that it offers an average lower cost of cotton yarn spinning than most states and also lower wages, it has been a preferred destination for cloth manufacture.

The textiles industry in the state is divided into five main sectors:

• Handloom

• Powerloom

• Textile and spinning mills


• Garments and hoisery

• Processing

Profile of the Textiles Industry, Tamil Nadu, 2011


All sectors are of equal importance to the State’s economy and the textiles industry as a whole provides direct and indirect employment to the largest number of people after the agricultural industry.

Tamil Nadu constitutes:

• 61.6 percent of all the spinning mills in the country

• 19.2 percent of all the powerlooms

• 11.8 percent of the handlooms

• 25.1 percent of the hand processing units

• 50.0 percent of all the knitting and garment units


Textiles Policy

Textile parks that have been set up in Chennai, Erode and Tiruppur have built into them Common Effluent Treatment facilities. Various other textile parks have been set up. The handloom industry has been given a boost by introducing seven textile parks under the Scheme for Integrated Textile Parks (SITP). These textile parks aim at upgrading textile industries with state-of-the-art infrastructure facilities required to meet international standards. The Government has undertaken other reforms to lift the handloom industry such as the rebate subsidy for handloom cloth, the Deen Dayal Hathkargha Protsahan Yojana to subsidize the industry, the Enforcement of the Handloom Act, 1985 to protect the interest of the handloom weavers, etc. Good infrastructure, especially, port facilities have enabled State to retain its position as strategic location for the textiles industry. The handloom industry is being provided with special incentives to create growth opportunities in an industry that falls mostly under the unorganized sector. The Government provides a 20.0 percent rebate on the sale of handloom cloth throughout the year.

Other Government Initiatives

As an aftermath of the Eurozone crisis and a weak Rupee, the industry in the State has had to face huge losses. To provide some relief, the Government has restructured debt worth INR 17,000 crore for 2012-13. INR 200 crore interest free loans have been provided by the Government for the revival of the Common Effluent Treatment Plant (CETPs) through the installation of Zero Liquid Discharge (ZLD) facilities using advanced technologies in the 2012-13 Budget. A further INR 179.34 crore was sanctioned to revive 18 CETPs.

information and communications Technologies industry

Building the Right Connections - Tamil Nadu’s ICT Industry

Tamil Nadu, especially Chennai, is a hub for the ICT industry. Tamil Nadu has the advantage of a skilledworkforce and a large pool of technically qualified IT manpower. Tamil Nadu is now gaining an even stronger foothold in the industry by expanding the industry into its two tier cities such as Coimbatore, Tirunelveli, Madurai, Salem, Trichy and Hosur. Tamil Nadu has climbed up on the value chain and offers a wide range of services from data processing to designing sophisticated software systems. Major software companies with a base in Chennai are Cognizant Technology Solutions, Accenture, Infosys, Wipro, and IBM, etc.

Tamil Nadu is also a leading player in the electronics hardware market. It is the largest electronics manufacturing and export base in India. Major hardware companies in Chennai are Nokia, Dell,


Samsung, and Motorola, etc. Nokia’s mobile handset manufacturing plant in Chennai is the largest in the world. Strong actions taken to protect Intellectual Property Rights and the Semiconductor Policy have made the industry even more attractive.

Availing the benefits of SEZs, the IT parks have helped the State to mushroom into an IT hub. Tamil Nadu has seen an increasing number of IT enterprises in the industry owing to its IT and ITES policies and special incentives in the form of SEZs. The IT SEZs are continually expanding their bases in Chennai and other Tier - II cities in the State to bring forth more business.Total software exports stood at INR 42,100 crore and around INR 48,000 crore for 2010-11 and 2011-12 respectively.

ICT Policies and Government Initiatives

The Tamil Nadu Government provides many incentives to the IT and ITES industry. Tax exemption is an important incentive along with the setting up of various IT parks which house IT companies. SIPCOT, ELCOT and TIDCO are some of the most important IT parks. ELCOT, as per Vision 2023 and the 2012-13 Budget, is now promoting IT parks, (ELCOSEZ), in the smaller cities of Coimbatore, Madurai, Salem, Tirunelveli, Trichy and Hosur.

leather industry

Leather policies and Government Initiatives

After growing at a negative rate during 2009-10, the industry picked up well to grow at 22.9 percent during 2011-12. The production value of the leather fur industry stood at INR 4,74,853 lakh and the investment in the industry was recorded at INR 68,057 lakh during 2008–09. The industry is expected to face rough weather due to the Eurozone crisis in 2012-13.

Tamil Nadu provides a special subsidy of 20.0 percent of the total investment subject to a maximum of INR 20 lakh to the leather industry. Leather tanneries have caused environmental concerns and hence have been asked to move further away from residential and semi-residential areas. The CETP (Common Effluent Treatment Plant) has been installed in leather tanneries and most work on zero discharge of tannery effluents. The proposed mega leather cluster in Tamil Nadu will not have tanneries but will deal with dry operations. It will be a manufacturing unit of value-added products such as footwear, garments, gloves, and components, etc.


Profile of the Leather Industry, Tamil Nadu, 2011


Agrobased industries

The Agro-based Industry of Tamil Nadu - Saccharine Growth

Tamil Nadu has a large agro-based industry and is one of the largest producers of agro and horticultural products in the country. The agricultural sector in the states is primarily unorganized.The sugar industry is one of the most important under the agro-based industries. Tamil Nadu contributes almost 10.0 percent to the total production of sugar in the country. The State has a total of 41 sugar mills. The total sugar cane production in 2008-09 was 166.49 lakh MT and the total sugar output was 16.16 lakh MT.


Total Production of Agro and Horticulture Products, Tamil Nadu, 2008-09-2010-11

Note: 2010 – 11 values are estimates.


Agro Policies and Government Initiatives

The Government of Tamil Nadu provides good support to the industry by providing incentives. The incentives fall under the Tamil Nadu Agro and Agro Processing Policy 2008. Income tax rebates and exemptions are widely available to the industry. It has been declared a priority sector and hence can avail priority lending from financial institutions. Industrial parks and SEZs also promote the industry. New Integrated Sugar Complexes, comprising of co-generation plants, distilleries, ethanol plant and bio-composting facilities, are being built in the State to provide a thrust to the industry. The Government has promoted food processing clusters and has set up an agri export for cashew to take the industry forward. The Government has also undertaken modernization of the sugar mills to make it economically attractive. Agriculture Export Zones have been set up to encourage the exports of agricultural products and food processing has been promoted to minimize wastage of agricultural products. System of rice intensification policy, precision farming, micro-irrigation, farm mechanization have been some of the initiatives taken by the State Government to promote the agriculture and agrobased industries.

chemicals and Pharmaceuticals industry

Chemicals, Petrochemicals, Pharmaceutical and Biotechnology Industries of Tamil Nadu - The Healing Touch

Tamil Nadu has three major chemical clusters – Chennai, Cuddalore and Tuticorin. The main products of the industry are fertilizers, paints, pesticides, organic and inorganic chemicals, polymers, soda, and pharmaceuticals, etc. Chennai is the largest glass market in India. It is also a major exporter of chemical products.


Tamil Nadu presents immense growth opportunities for the pharmaceuticals and biotechnology markets. It accounts for almost 11.0 percent of the total pharmaceutical market in the country. Sun Pharmaceuticals, GE Healthcare, and Lifecell International, are some of the important players in the pharmaceutical and biotechnology industry.The State has 28 oil and gas fields in the Cauvery Basin and produces crude oil and natural gas.

Chemicals and Petrochemicals Policies and Government Initiatives

The Petroleum Chemicals and Petrochemicals Investment Region policy was introduced in 2007 to promote the industry. Chennai Petroleum Corporation Limited (CPCL) and Nagarjuna Oil Corporation have a dense presence in the industry. The Tamil Nadu Biotechnology Policy and special bio-parks have been introduced to support pharmaceutical and biotechnology industries. The biotechnology policy has been revised by the Government to upgrade biotechnology facilities in the State. Marine Biotechnology Park in Mahabalipuram and the Medicinal Plant Biotech park have been the two new initiatives of the Government to promote the biotechnology industry. There has been an investment of INR 150 crore in the TIDCO Centre for Life Sciences (TICEL) Biotechnology Park II, an expansion of the TICEL Biotechnology Park in Chennai. The new biotechnology park is being built to provide scientific and incubation support to biotech industries.


future Growth ProSPectS

industrial Growth and investment opportunities

Growth Opportunities in Tamil Nadu - The Race Courses in the Next Decade

Tamil Nadu’s infrastructure sector has received a boost from the Government in the recent past and it now calls forth private sector participation in the sector. With infrastructure investment of INR 15,00,000 crore required in the next 10 years as per Vision 2023, the Governemnt is encouraging private participants through Public-Private-Partnerships (PPPs).

With Micro, Small and Medium Enterprises (MSMEs) increasingly assuming importance in the State economy, financial institutions, more specifically, Non Banking Financial Institutions (NBFIs) and Micro Finance Institutions (MFIs), hold immense potential in the scenario of expanding MSMEs.

The manufacturing sector after having slipped in importance over the last two decades, has now been receiving a thrust from the Government. New policies have been implemented for the growth of manufacturing industries as per Vision 2023 and this leaves the sector with untapped potential.

Along with bearing vast potential to be a manufacturing hub, Tamil Nadu, with a high level of domestic demand, holds good opportunities for the distribution sector too.

The automotive, IT, electronic hardware and textile industries hold the maximum investment opportunities in the state.

Tamil Nadu has also witnessed lower levels of FDI though relatively higher than some of the better states such as Gujarat and Andhra Pradesh. It has now become more welcoming of the foreign investrors and investor friendly policies are being implemented. This is expected to bring in higher amounts of FDI.

Closely related to the agriculture sector, the agro processing industry presents a lot of opportunities. The industry is one of the most important in the country. Good policies for the industry can take the industry even further. Many of the food and beverages giants are already present in the industry in Tamil Nadu.

The ICT industry has a lot of potential in that it has now moved up the value chain in production. This has widened its horizon and it is now attracting enterprises in different capacities.

Tamil Nadu places great importance on skill development and vocational training. It is a key parameter in bettering the State’s skilled manpower base. Therefore, higher and vocational education have


untapped potential. However, Tamil Nadu lags behind in electricity and power generation resulting shortage of power in the state in the recent years.

Medical tourism in India has become almost synonymous with Tamil Nadu in the present times. The Government wishes to further better its healthcare sector according to Vision 2023. The healthcare sector, medical tourism in particular, offers spectaculaer growth opportunities.

Tamil Nadu’s pharmaceutical industry is now developing fast and with good policies and regulations, the industry is expected to take off soon.Manufacture of drugs, retail pharmacy and research activites hold maximum potential within the industry.

The textile industry also offers good growth opportunities with the government being ready to support the industry in the wake of a global demand crunch. Domestic demand has increased and the state can do well to capitalize on the increased demand.

Tamil Nadu has been chosen as one of the seven locations for the mega leather cluster. This is an important incentive for the growth of an industry that has seen increasing output and trade in the past.

Appendix-statistical TablesTable 1 GDP Composition (Tamil Nadu), 2004-2010

Table 2 Economic Growth Trends by Sectors (Selected States), 2004-2010

Table 3 Urbanization Rates (Selected States), 1971-2011

Table 4 Population Density (Selected States), 1971-2011

Table 5 Industrial Investment Proposals by States (Selected States), 1990-2010

Table 6 Selected Industry Indicators (Tamil Nadu), 2001-2009

Table 1 GDP Composition (Tamil Nadu), 2004-2009

Indicators 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Agriculture (INR Crore) 22360.1 25227.7 28744.7 27306.9 26907.6 27468.4Industry (INR Crore) 36996.3 41990.8 50013.8 49191.9 49191.9 54533.1Services (INR Crore) 134571.0 153348.0 175462.4 193566.9 211142.8 230946.7GDP (INR Crore) 219003 257833 310526 350819 401336 473519State per Capita (INR) 30062 35243 42288 47606 54140 63547Note: All figures are at current market prices.

Source: Frost & Sullivan analysis


Table 2 Economic Growth Trends by Sectors (Selected States), 2004-2009States Unit Agriculture Industry Services GDPAndhra Pradesh % 5.4 6.5 10.3 8.6Gujarat % 3.9 10.2 12.5 10.5Karnataka % 3.5 7.2 9.7 8.2Maharashtra % 6.3 12.6 11.9 11.5Tamil Nadu % 4.2 8.1 11.4 10.0Kerala % -1.3 10.1 10.3 8.7India % 3.0 8.6 10.2 8.6Note: Average Annual Growth between 2004-05 and 2009-10.

Source: Reserve Bank of India and Frost & Sullivan analysis

Table 3 Urbanization Rates (Selected States), 1971-2011States 1971 1981 1991 2001 2011Andhra Pradesh 19.31 23.32 26.89 27.3 33.49Gujarat 28.08 31.1 34.49 37.36 42.58Karnataka 24.31 28.89 30.92 33.99 38.57Maharashtra 31.17 35.03 38.69 42.43 45.23Tamil Nadu 30.26 32.95 34.15 44.04 48.45Kerala 16.24 18.74 26.39 25.96 47.72India 19.91 23.7 25.73 27.81 31.16Note: All figures are in percentages

Source: Frost & Sullivan analysis

Table 4 Population Density (Selected States), 1971-2011States 1971 1981 1991 2001 2011Andhra Pradesh 158 195 242 277 308Gujarat 136 174 211 258 308Karnataka 153 194 235 276 319Maharashtra 164 204 257 315 365Tamil Nadu 317 372 429 480 555Kerala 549 655 749 819 859India 177 216 267 325 382Note: Population Density per Square Kilometer

Source: Central Statistics Office and Frost & Sullivan analysis


Table 5 Industrial Investment Proposals by States (Selected States), 1990-2010

Total Investment IEM LOI & DIL

States (‘000 Crore) (‘000 Crore) (‘000 Crore)

Andhra Pradesh 689.61 673.81 15.8

Gujarat 897.91 871.94 25.97

Karnataka 599.25 587.62 11.63

Maharashtra 743.47 724.62 18.85

Tamil Nadu 313.94 299.66 14.28

Kerala 13.77 10.9 2.87

India 7622.26 7487.07 135.2Note:IEM – Industrial Entrepreneur MemorandumLOI – Letter of IntentDIL – Direct Industrial LicenseNote: Figures refer to the total for the period 1990 to 2010

Source: Ministry of Commerce & Industry and Frost & Sullivan analysis

Table 6 Selected Industry Indicators (Tamil Nadu), 2001-2009

States 2001-2002 2008-2009 Growth (%)

Factories 18912 26122 4.7

Employment 1095941 1774019 7.1

Total Output 9436057 30080195 18.0Note:Industry Output is in INR Crore at Current Prices

Source: Annual Survey of Industries and Frost & Sullivan analysis


eNViSioNiNG tamil Nadu"The ultimate destination"

U.K. Joshi,Director, ASSOCHAM

introduction

Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh. It is bound by the Eastern Ghats in the north, the Nilgiri, the Anamalai Hills, and Palakkad on the west, by the Bay of Bengal in the east, the Gulf of Mannar, the Palk Strait in the south east, and by the Indian Ocean in the south.

Tamil Nadu is the eleventh largest state in India with an area of 130,058 square kilometres (50,216 sq mi) and the seventh most populous state with a population of 72,138,958 (5.96% of India’s population; census 2011 fig.). It is the seventh most densely populated state in India with a population density of 555 persons per square kilometre as of 2011, having increased from 429 in 1991, significantly higher than the Indian average of 382 persons per square kilometre. 44% of the state’s population lives in urban areas, the highest among large states in India. Tamil Nadu covers and it has a coastline of about 910 kilometres (600 mi) which is the country’s third longest coastline. It is the second largest state economy in India as of 2012, after overtaking Uttar Pradesh and Andhra Pradesh in the two years since 2010 until when it was the fourth largest contributor to India’s GDP. The state ranked among the top 5 states in India in Human Development Index as of 2006. Tamil Nadu is also the most urbanized state in India. The state has the highest number (10.56%) of business enterprises and stands second in total employment (9.97%) in India, compared to the population share of about 6%.

The region has been the home of the Tamil people since at least 500 BCE. Its official language Tamil has been in use in inscriptions and literature for over 2000 years. Tamil Nadu is home to many natural resources, Hindu temples of Dravidian architecture, hill stations, beach resorts, multi-religious pilgrimage sites and eight UNESCO World Heritage Sites.

Administratively the state is divided into 32 districts. It has 10 city corporations, 125 municipalities, 529 town panchayats and 12,524 village panchayats. Chennai (formerly known as Madras) is the state capital. It is the fourth largest city in India and is also one of the eight Metropolitan cities of India. The state comprises 39 Lok Sabha constituencies and 234 Legislative Assembly constituencies.


economy

Tamil Nadu is the second largest contributor to India’s GDP. Tamil Nadu’s gross state domestic product for the year 2011-2012 was 4.28 lakh crore or $145,868 Million. The state has shown a growth of 9.4% in the year 2011-2012. Tamil Nadu is the most industrialized state in India. It ranks third in foreign direct investment (FDI) approvals (cumulative 1991–2002) of 225,826 million ($5,000 million), next only to Maharashtra and Delhi constituting 9.12% of the total FDI in the country. The per capita income in 2007–2008 for the state was 72,993 ranking third among states with a population over 10 million and has steadily been above the national average.

According to the 2011 Census, Tamil Nadu is the most urbanized state in India (49%), accounting for 9.6% of the urban population while only comprising 6% of India’s total population. Service contributes to 45% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 21%. Government is the major investor in the state with 51% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. Tamil Nadu has a network of about 113 industrial parks and estates offering developed plots with supporting infrastructure.

According to the publications of the Tamil Nadu government the Gross State Domestic Product at Constant Prices (Base year 2004–2005) for the year 2011–2012 is 428,109 crores, an increase of 9.39% over the previous year. The per capita income at current price is 72,993.

Gross State Domestic Product in ` Crores at Constant Prices

Year GSDP Growth Rate Share in India

2000–01 142,065 5.87% 7.62%

2001–02 139,842 -1.56% 7.09%

2002–03 142,295 1.75% 6.95%

2003–04 150,815 5.99% 6.79%

2004–05 219,003 11.45% 7.37%

2005–06 249,567 13.96% 7.67%

2006–07 287,530 15.21% 8.07%

2007–08 305,157 6.13% 7.83%

2008–09 320,085 4.89% 7.70%

2009–10 350,258 9.43% 7.77%

2010–11 391,372 11.74% 8.01%

2011–12 428,109 9.39% 8.20%


infrastructure

Tamil Nadu has a transportation system that connects all parts of the state. Tamil Nadu is served by an extensive road network, providing links between urban centers, agricultural market-places and rural areas. There are 28 national highways in the state, covering a total distance of 5,036 km (3,129 mi). The state is also a terminus for the Golden Quadrilateral project. The state has a total road length of 167,000 km (103,769 mi), of which 60,628 km (37,672 mi) are maintained by Highways Department. This is nearly 2.5 times higher than the density of all-India road network. The major road junctions are Chennai, Trichy, Madurai, Coimbatore, Salem, Karur, Krishnagiri, Dindigul, Kanniyakumari.

Tamil Nadu has a well-developed rail network as part of Southern Railway. Headquartered at Chennai, the Southern Railway network extends over a large area of India’s Southern Peninsula, covering the states of Tamil Nadu, Kerala, Pondicherry, a small portion of Karnataka and a small portion of Andhra Pradesh. Tamil Nadu has a total railway track length of 5,952 km (3,698 mi) and there are 532 railway stations in the state. The system connects it with most major cities in India. Main rail junctions in the state include Chennai, Madurai, Coimbatore, Salem, Tiruchirapalli (Trichy) and Erode. Chennai has a well-established suburban railway network and is in the process of developing a metro.

Tamil Nadu has a major international airport, Chennai International Airport, that is connected with 19 countries with more than 169 direct flights every week. This is the third largest airport in India after Mumbai and Delhi and has a passenger growth of 18%. Other international airports present in the state are Coimbatore International Airport, and Tiruchirapalli International Airport. The Madurai Airport, Salem Airport and Tuticorin Airport are domestic airports which connect their respective cities to other parts of the country. Increased industrial activity has given rise to an increase in passenger traffic as well as freight movement which has been growing at over 18 per cent per year.

Tamil Nadu has three major seaports at Chennai, Ennore and Tuticorin, as well as one intermediate port, at Nagapattinam (Seven other minor ports including Cuddalore and Nagapattinam). Chennai Port is an artificial harbour situated on the Coromandel Coast in South-East India and it is the second principal port in the country for handling containers. Ennore Port handles all the coal and ore traffic in Tamil Nadu. The volume of cargo in the ports grew by 13 per cent during 2005.

As of 2005, Tamil Nadu is one of the few Indian states with surplus Electricity generation capacity, enabling the electrical authority to sell it to neighboring states of Andhra Pradesh & Karnataka. The Kalpakkam Nuclear Power Plant, Ennore Thermal Plant, Neyveli Lignite Power Plant, many hydroelectric plants including Mettur and the Narimanam Natural Gas Plants are major sources of Tamil Nadu’s electricity. It is presently adding the Koodankulam Nuclear Power Plant to its energy grid, which on completion would be the largest atomic power plant in the country, in terms of capacity. The total


installed capacity for electricity in the State is 8,249 MW. The installed capacity of State Sector is 5,288 MW, and that of Private Sector is 1,058 MW. Apart from this, 1,903 MW is available as share from Central Sector.

Tamil Nadu is a significant proportion of its power needs from renewable sources with wind power installed capacity at over 3600 MW or over 40% of the maximum peak demand. Tamil Nadu ranks first nationwide in diesel-based thermal electricity generation with a national market share of over 34%. 55% of all wind-generated electricity in India is created by windmills in Tamil Nadu. Renowned Danish wind power company NEG Micon has established its manufacturing unit in Chennai.

Agriculture

Agriculture is the most predominant sector of the economy of Tamil Nadu, a state in India. 70% of the states population is engaged in agriculture and allied activities for their livelihood. Tamil Nadu has as an area of 1.3 Lakh km2 with a gross cropped area of around 58.43 lakh hectares of which the Gross Irrigated Area is 33.09 lakh hectares which is 57% and the balance 43% of the area are under rainfed cultivation.

The Cauvery delta region is known as the Rice Bowl of South India. In terms of production, Tamil Nadu accounts for 10% in fruits and 6% in vegetables, in India. Tamil Nadu is also a leading state in the production of flowers with the total production of horticultural crops standing at 99.47 Lakhs during 2003–04. The main flowers grown in Tamil Nadu are jasmine, mullai, chrysanthemum, marigold and rose.

The principal food crops are rice, maize, jowar (cholam), bajra (cumbu), ragi, and pulses (Bengalgram, Redgram, Greengram, Blackgram and Horsegram).The cash crops include cotton, sugarcane, oilseeds, coffee, tea, rubber, coconut, gingelly and chillies. The important products are bananas and mangoes. The state is the largest producer of bananas, flowers, tapioca, the second largest producer of mangoes, natural rubber, coconut, groundnut and the third largest producer of coffee, sapota, tea and sugarcane.

Among states in India, Tamil Nadu is one of the leaders in livestock, poultry and fisheries production. Tamil Nadu had the second largest number of poultry amongst all the states and accounted for 17.7% of the total poultry population in India. In 2003–2004, Tamil Nadu had produced 37,836 lakhs of eggs, which was the second highest in India representing 9.37% of the total egg production in the country. With the third longest coastline in India, Tamil Nadu represented 27.54% of the total value of fish and fishery products exported by India in 2006.

Textiles


Textile mills and engineering industries are present around the city of Coimbatore. It is home to textile, automotive spare parts and motor pump manufacturing units. Cities of Tirupur and Erode are the country’s largest exporters of knitwear. They are well known for textile manufacturing industries and exports to such extent that the districts of Coimbatore, Tirupur, Karur, Erode, Namakkal and Salem. The region around Coimbatore, Tirupur, Karur and Erode is referred to as the “Textile Valley of India” with the export from the Tirupur 50,000 million ($1,000 million) and Karur generates around 35,500 million ($750 million) an year in foreign exchange. 56% of India’s total knitwear exports come from Tirupur & Karur make above 60% of India’s Home Textiles. Gobichettipalayam, Pollachi, Theni andVedasandur are known for its cotton mills. Rajapalayam is famous for its cotton market. Kanchipuram and Arani are world famous for their pure zari silk sarees and handloom silk weaving industries. Aruppukottai, Salem, Sathiyamangalam, are also famous for Art-Silk sarees.

Andipatti, Tiruchengodu, Paramakudi, Kurinjipadi are major handloom centres. Negamam, Cinnalapatti, Woraiyur, Pochampalli are famous for its soft cotton saree weavings. Madurai is well known for its Chungidi cotton saree.

Automobiles

Tamil Nadu has seen major investments in the automobile industry over many decades manufacturing cars, railway coaches, battle-tanks, tractors, motorcycles, automobile spare parts and accessories, tyres and heavy vehicles. Major global automobile companies including BMW, Ford, Renault-Nissan, Caterpillar, Hyundai, Mitsubishi Motors and Michelin as well as local automobile majors like Ashok Leyland, Hindustan Motors, TVS Motors, Irizar-TVS, Royal Enfield, MRF, Apollo Tyres, TAFE Tractors, DaimlerChrysler AG Company also invested ( ) 4 billion for establishing new plant in Tamil Nadu have manufacturing operations in Tamil Nadu. Karur is a hub for Bus body building industries. Namakkal is the major source of Heavy Vehicle and lorry body building.

heavy industries

Tamil Nadu is one of the highly industrialised states in India. Over 11.2% of the S&P CNX 500 conglomerates have corporate offices in Tamil Nadu. Many heavy engineering and manufacturing companies are located in and around the suburbs of Chennai. Bharat Heavy Electricals Limited, one of India’s largest electrical equipment manufacturing company, has manufacturing plants at Tiruchirapalli and Ranipet. India’s leading steel producer, SAIL has a steel plant in Salem. Sterlite Industries has their copper smelter plant in Tuticorin and aluminium plant in Mettur. The state government owns the Tamil Nadu Newsprint and Papers Ltd. (TNPL), the world’s biggest bagasse based Paper mills in Karur, as well as the world’s sixth largest manufacturer of watches together with TATA at Hosur, under the brand name of “Titan”. Number of large Cement factories such as Chettinad cements, Ramco cements,


Tancem, Dalmia cements, Vajram cements, ACC are present across the state.Ariyalur is termed as the land of cement industries in the state.

electronics & software

Electronics manufacturing is a growing industry in Tamil Nadu, with many telecommunications giants like Nokia, Flextronics, Motorola, Sony-Ericsson, Foxconn, Samsung, Cisco, Moser Baer and Dell having chosen Chennai as their South Asian manufacturing hub. Products manufactured include circuit boards and cellular phone handsets.

Tamil Nadu is the second largest software exporter by value in India, second only to Karnataka. Software exports from Tamil Nadu grew from 76 billion ($1.6 billion) in 2003–04 to 207 billion {$5 billion} by 2006–07 according to NASSCOM and to 366 billion in 2008–09 which shows 29% growth in software exports according to STPI. Major national and global IT Companies such as Syntel, Infosys, Wipro, HCL, Tata Consultancy Services,Mahindra Satyam, Verizon, Hewlett-Packard, Amazon.com, Paypal, IBM, Accenture, Ramco Systems, Computer Sciences Corporation, Cognizant Technology solutions, Tech Mahindra, Polaris, Aricent, MphasiS, MindTree, BBM info 24/7 Customers, and many others have offices in Tamil Nadu

leather industry

The state accounts for 70 per cent of leather tanning capacity in India and 38 per cent of leather footwear and components. The exports from Tamil Nadu are valued at about US $ 762 million, which accounts for 42 per cent of Indian leather exports. Hundreds of leather and tannery industries are located around Vellore, Dindigul and Erode its nearby towns such as Ranipet, Ambur, Perundurai, Nilakottai and Vaniyambadi. The Vellore district is the top exporter of finished leather goods in the country. That leather accounts for more than 37% of the country’s Export of Leather and Leather related products such as finished leathers, shoes, garments, gloves and so on. The tanning industry in India has a total installed capacity of 225 million pieces of hide and skins of which Tamil Nadu alone contributes to an inspiring 70%. Leather industry occupies a pride of place in the industrial map of Tamil Nadu. Tamil Nadu enjoys a leading position with 40% share in India’s export. It currently employs about 2.5 million workforces.

Tourism

Tamil Nadu’s tourism industry is the second largest in India, with an annual growth rate of 16%. Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation (TTDC), a Government of Tamil Nadu undertaking. The tagline adopted for promoting tourism in Tamil Nadu is Enchanting Tamil Nadu. Approximately 2,804,687 foreign and 111,637,104 domestic tourists visited


the state in 2010.

Marina Beach in Chennai is one of the longest beaches in the world. The stretch of beaches from Chennai to Mahabalipuram is home to many resorts, theme parks and eateries. The prominent waterfalls in the state are Courtallam, Hogenakal, Papanasam, Manimuthar, Thirparappu, Pykara, and Silver Cascade. The Chettinad region of the state is renowned for its Palatial houses and cuisine. With medical care in Chennai, Vellore, Coimbatore and Madurai, Tamil Nadu has the largest numbers in Medical tourism in India.

HHH

vision tamil nadu

Documents