Speciality
OE-OneIndia Staff
Chennai, August 13:
The DMK government came to power in Tamil Nadu on May 7, 2021, while the country was grappling with the effects of the Covid pandemic and its second wave. However, this did not deter the MK Stalin-led government from attracting investments to the state. Let us take a look at how investment flows have started in the last one year:
Tamil Nadu received an investment of ₹95,000 crore in 1 year
In the last 12 months, Memoranda of Understanding (MoU) were signed with 132 companies, leading to an investment of around Rs 95,000 crore and likely to generate employment for over 2 lakh people. Out of the 132 MoUs signed, 29 companies have started the process of identifying land to set up their units and 25 are in the planning stages.
Making a statement in the Assembly, Chief Minister MK Stalin said that the government under the DMK was successful in getting thousands of crores of rupees as investments. “Tamil Nadu has signed 130 MoUs for an investment of Rs 68,375 crore to create 2,05,802 jobs since the DMK came to power 10 months ago,” Stalin said.
Most preferred destination for investors
Tamil Nadu Chief Minister MK Stalin
Industries Minister Thangam Thennarasu said the government has received investments in various sectors including aerospace, defence, information technology, IT-enabled services, making the state the most preferred destination for investors. Noting that the government has renamed the Industries Department as ‘Industrial Promotion and Commerce’ to project Tamil Nadu as an investment-friendly destination, he said many companies are keen to enter into an MoU with the government.
Tamil Nadu moves ahead in ease of doing business ranking
The state’s ranking in Ease of Doing Business (released by Union Finance Minister Nirmala Sitharaman) has also improved from 14 to three. Tamil Nadu has received an investment of Rs 95,000 crore in 1 year. Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Tamil Nadu and Telangana are the seven states that have been classified as top achievers in the ranking of states and union territories based on the implementation of the Business Reforms Action Plan 2020, released by Finance Minister Nirmala Sitharaman on Thursday Chief Minister MK Stalin lauded Industries Minister Thangam Thennarasu for his concerted efforts to promote Tamil Nadu as a major investment destination as the state moved up in the national ranking in ease of doing business, according to a report. .
Tamil Nadu ranks fourth in export index
With exports worth Rs 1.93 lakh crore, Tamil Nadu is India’s third largest state in exports, and has a share of 8.97 per cent (2020-21) in national exports, Chief Minister Stalin said. Citing sector-wise data on exports from the state, which include apparel and accessories and footwear with a share of 58 per cent and 45 per cent respectively. Stalin said that a special body, a Project Monitoring Unit, has been set up to monitor the export plans of MSMEs.
FDI in Tamil Nadu increased by 41.5%
The DMK-led government marked a remarkable turnaround in the image as an ideal global investment destination, leading to a 41.5 per cent increase in foreign direct investment (FDI) and steps will be taken to attract more investments in the state. Global Investors Meet (GIM) by the end of 2023, Stalin had informed. From April to December 2021, FDI increased by 41.5 percent. “We will attract more investments through GIM, which will be up by the end of 2023 and generate employment opportunities,” Stalin said. He claimed that various measures taken by the government have boosted investor confidence.
TN is making rapid progress in the industry
The southern state is making rapid progress on the industrial front especially in receiving more investments. On the demand side, the state ranks third in terms of manufacturing output after Maharashtra and Gujarat, but is home to the largest number of factories and workers employed in organized manufacturing in the country. The textile, clothing, auto components and leather goods sectors dominate the manufacturing scenario of the state. Importantly, the wage share in the manufacturing sector in Tamil Nadu has been relatively better than in other major manufacturing states. According to data presented by the Annual Survey of Industries, the share paid as wages and salaries in gross value added by organized manufacturing in the state was 19% in 2018-19. In Gujarat and Maharashtra this share was 11.2% and 13.6% respectively.
road ahead
Government aims to make Tamil Nadu a $1 trillion economy
Tamil Nadu Chief Minister MK Stalin has set an ambitious target of making the state a $1 trillion economy by 2030. The state will be promoted as the best option for investors in the region. He also expressed his desire to take the products made in the state to all the countries of the world. He also resolved to invest equally in each region of the state.
12 new industrial projects with a potential to generate about 7000 jobs were inaugurated by Stalin at a cost of about Rs.1500 crores. He also laid the foundation stone of twelve projects worth more than Rs 22 thousand crore. It is said that these have the potential to create around 18,000 jobs. State Biotechnology Promotion Policy-2022 and State Research and Development Policy-2022 were unveiled by the Chief Minister in the meeting.
Lulu Group to invest Rs 3,500 crore in Tamil Nadu
Multinational conglomerate Lulu Group International has pledged to invest Rs 3,500 crore to build two shopping malls in Tamil Nadu and set up an export-oriented food processing unit in the southern state. The group will begin construction of the mall “very soon” and said they will provide employment to over 5,000 people. While the mall 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 UAE industrialists 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 huge furniture park coming up in Thoothukudi in southern Tamil Nadu.