Tamil Nadu's economic growth declining: ASSOCHAM

Hyderabad, Jun 27: Association of Chamber of Commerce and Industry of India (ASSOCHAM) President Anil K Agarwal today said that the economic growth rate of Tamil Nadu was on a downward trend following non implementation of VAT in that state.

Speaking to newspersons here, he said most of the investors were not showing interest to establish industries in the states where VAT was not being implemented.

He pointed out that Tamil Nadu, being represented 'by the Union Finance Minister P Chidambaram was unable to implement the VAT in his home state despite the DMK-led government being a coalition partner of the Congress-led UPA government at the Centre'.

Observing that even the BJP ruled state governments were implementing the VAT and registering high economic growth compared to the states which had not adopted the VAT Act, Mr Agarwal said most of the projects from Tamil Nadu were shifted to the neighbouring Andhra Pradesh, which was implementing VAT since two years.

Tamil Nadu, Uttar Pradesh and Uttaranchal were the only three states which had not implemented VAT in the country, he added.

He also said the Mukesh Ambani Reliance group would enter into retail market business in Andhra Pradesh soon.

The Mukesh Ambani group was keen to enter reatil market in Andhra Pradesh, which had great potential. The group would also enter into petro-chemical complex projects in the state soon, he added.

Stating that a conducive policy and business environment was required to garner more investments, he said the state governments should encourage the private investors in investing in infrastructure development projects besides according priority to agriculture and food processing sectors.

UNI