How investments started to flow into TN in one year?

Chennai, Aug 13: It was on May 7, 2021, that the DMK government came to power in Tamil Nadu even as the country was reeling under the impact of the Covid pandemic and its second wave. However, that did not deter the MK Stalin-led government from attracting investments into the state. Let us take a look at how has the investments start to flow in last one year:

Tamil Nadu got ₹95,000 cr investment in 1 year
In the last 12 months, Memorandums of Understanding (MoUs) with 132 companies were signed, bringing an investment of close to Rs 95,000 crore and potential to generate jobs for more than 2 lakh people. Of the 132 MoUs signed, 29 companies have begun the process of identifying land to set up their units and as many as 25 are in the planning stages.

Making a statement in the Assembly, the Chief Minister MK Stalin said the government, under the DMK, succeeded in getting thousands of crores of rupees as investments. "Tamil Nadu has signed 130 MoUs for investments to the tune of Rs 68,375 crore to generate 2,05,802 jobs since the DMK came to power 10 months ago," Stalin said.

Most preferable destination for investors

Minister for Industries Thangam Thennarasu said the government has received investments in various sectors including aerospace, defence, Information Technology, IT-enabled services making the state the most preferable destination for investors. Noting that the government changed the name of the industries department into 'industrial promotion and commerce' to project Tamil Nadu as an investment-friendly destination, he said several companies were keen to ink an MoU with the government.

Tamil Nadu moves up in ease of doing business ranking

The state's ranking in ease of doing business (released by Union finance minister Nirmala Sitharaman) has also jumped to three from 14. Tamil Nadu got ₹95,000 cr investment in 1 year. Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Tamil Nadu and Telangana are the seven states categorised as top achievers in the ranking of States and Union Territories based on the implementation of the business reform action plan 2020, according to a report released by Finance Minister Nirmala Sitharaman on Thursday. Chief Minister MK Stalin lauded Minister for Industries Thangam Thennarasu for the concerted efforts at promoting Tamil Nadu as the major hub of investments, as the state has moved up in the national ranking in the ease of doing business.

Tamil Nadu ranks 4th in Export Index

With Rs 1.93 lakh crore exports, Tamil Nadu is the third biggest state in India in exports, and its share in national exports is 8.97 per cent (2020-21), Chief Minister Stalin said. Citing sector-wise statistics on exports from the state, including a 58 per cent and 45 per cent share in apparel and accessories and footwear respectively. Stalin said a Project Monitoring Unit, an exclusive body, has been set up to monitor export schemes of MSMEs.

FDI in Tamil Nadu increased by 41.5%

The DMK-led government also made a remarkable turnaround in image as an ideal global investment destination, leading to an increase in foreign direct investment (FDI) by 41.5 per cent, and steps would be taken to attract more investments in the state by organising a global investors meet (GIM) by 2023-end, Stalin had informed. From April to December 2021, FDI increased by 41.5 per cent. "We will attract more investments through the GIM which will be held by 2023-end, and generate employment opportunities," Stalin said and claimed the various measures taken by the government has increased investors' confidence.

TN making rapid progress in industry

The southernmost state is making rapid progress on the industrial front particularly in obtaining more investments. On the demand side, the state stands third in terms of manufacturing output after Maharashtra and Gujarat, but is home to the largest number of factories and workers employed in organised manufacturing in the country. Textiles, garments, auto components and leather goods sectors dominate the manufacturing landscape of the State. Importantly, the share of wages in the Tamil Nadu manufacturing sector has been relatively better than in other major manufacturing States. As per data furnished by the Annual Survey of Industries, the share paid as wages and salaries in gross value added by organised manufacturing in the State was 19% in 2018-19. This share was only 11.2% and 13.6% in Gujarat and Maharashtra respectively.

Way forward

Govt aim is to make Tamil Nadu a $1 trillion economy

Tamil Nadu chief minister MK Stalin has set an ambitious target for the state to become a USD 1-trillion economy by 2030. The state will be promoted as the best choice for investors in the region. He also expressed his desire to enable the products made in the state to reach all the countries in the world. He also vowed for the investments to be made equitably in each and every region of the state.

Twelve new industrial projects worth nearly 1500 crore rupees with the potential to generate about 7000 jobs were inaugurated by Stalin. He also laid the foundation stone for twelve projects worth more than 22 thousand crore rupees. They are said to have the potential to create nearly 18 thousand jobs. The state biotechnology promotion policy-2022 and the state research and development policy-2022 were unveiled by the chief minister in the meeting.

LuLu Group to invest Rs 3,500 crores in Tamil Nadu

Multinational conglomerate LuLu Group International has pledged to invest Rs 3,500 crore in Tamil Nadu to build two shopping malls and set up an export-oriented food processing unit in the southern state. The group will begin construction of the malls "very soon" and said that they will provide employment to over 5,000 people. While the malls will be built at a cost of Rs 2,500 crore, the food processing unit will come up at a cost of Rs 1,000 crore.

Stalin invited industrialists from the UAE to invest in food processing, real estate, hospitality, and food parks among other sectors. He also asked investors from Dubai to consider setting up their units in a massive furniture park that is coming in Thoothukudi in southern Tamil Nadu.