Stalin aims to make Tamil Nadu USD 1 trillion economy by 2030
Tamil Nadu chief minister MK Stalin has set an ambitious target for the state to become a USD 1-trillion economy by 2030. “We want Tamil Nadu to be one of the best states in South Asia. Our government’s target is to make Tamil Nadu a USD 1 trillion economy,” Stalin said, speaking at the Investors Conclave organised by the industries department, in Chennai on Tuesday. “A conducive environment to attract investments to Tamil Nadu should be created,” he added.
The state industry department’s principal secretary, N Muruganandan, speaking at the function added that the chief minister has set a target to bring in investment of ₹23 lakh crore by 2030.
During the event, the total investment committed to 49 projects came to around Rs. 28,508 crores and employment opportunities to 83,482 people. This included the Tamil Nadu government entering into 35 MoUs with a cumulative investment of ₹17,141 crores and employment opportunities for 55,054 people. These are the first series of investments inked by the two-month-old DMK government, officials said.
Guidance Tamil Nadu, the state nodal agency for investment promotion, has entered into an MoU with American Tamil Entrepreneurs Association (ATEA) to promote start-ups in the fields of innovation, research and development. The government has sanctioned a grant of ₹five crore to five start-ups selected for this program.
An MoU was signed between General Electric Company and TIDCO to establish a Centre of Excellence to enhance the production of aircraft and aeronautical components for industries in the aerospace and defence sector using advanced manufacturing technologies.
The investments are in the fields of power plants, electronics, auto components, industrial parks, IT/ITeS services, food processing, footwear, pharmaceuticals, and textiles. The tie-ups are with companies such as JSW Energy to set up 450 MW Wind Power Generation in Tuticorin, Tirunelveli, Dindigul and Tiruppur with a ₹3000-crore investment.
Germany-based ZF Wabco is to make auto components in SIPCOT Oragadam Phase 2 in Kancheepuram with an investment worth ₹1,800 crore. Singapore-based Capital Land is to set up a data centre in Chennai for 1,200 crore and Tata Consultancy Services will generate employment for 15,000 people for their Phase III project at Sipcot Siruseri with an investment worth ₹900 crore.
Former national president of All India Manufacturers’ Organisation and convener of Consortium of Indian Associations, KE Raghunathan, said that the state’s target of USD one trillion economy is achievable but external factors, such as the pandemic, will have an impact.
“Reaching that mark is feasible because Tamil Nadu is a state that is industrial, it has decentralised empowerment, it produces close to 150,000 engineers every year,” he said. In Raghunathan’s view, Tuesday’s developments show that the investments cover an array of various industries unlike in Global Investors’ Meet (GIM) where 90% of the investments were in the renewable energy sector. The investment sites are spread throughout Tamil Nadu and the government had recognised high-value and low-value projects equally, he said.
“Tamil Nadu had cornered all the neighbouring states (Karnataka, Andhra Pradesh, Kerala) by positioning industrial estates at the border points but in the last 15-20 years we seem to have lost that advantage,” said Raghunathan.
“Normally, industries are wary when a government is in transition. By continuing with projects signed by the previous (AIADMK) regime, Stalin has conveyed a signal that he will not hamper the commitments made to those industries coming into Tamil Nadu.” The next step, he said, is the MSME development in Tamil Nadu.
“Where is Stalin going to lead the entrepreneurs who are already doing business in Tamil Nadu? How is he going to save them from the losses they incurred during Covid-19? Any corporate which sets up large units will need to depend on the local entrepreneurs.”
Stalin launched a Single Window Portal 2.0 with upgraded digital services such as parallel processing of clearances, virtual meeting with departments, an Artificial Intelligence-based Chatbot and approval for select clearances for existing and new investors.
Stalin also laid the foundation stones for nine projects, with a total investment commitment of ₹4,250 crores, including AG&P Pratham’s commissioning of a station at an investment of ₹1,700 crore. He inaugurated five projects with a cumulative investment of Rs. 7,117 crores including UAE’s Integrated Chennai Business Park DP World located in Thiruvallur at an investment of ₹1,000 crore.