Tamil Nadu Industrial Map Part - 01

Tamil Nadu Industrial Map Part - 01

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

Introduction

• Tamil Nadu, one of India's four southern states, is a thriving region with a population exceeding 83 million and spanning an area of 50,216 square miles (130,058 square kilometers).
• Positioned in the southeastern part of the country, Tamil Nadu shares its borders with Karnataka, Kerala, and Andhra Pradesh, with Tamil as the primary language spoken.
• Recognized as one of the most urbanized states in India (48.45 percent as of 2011 census), Tamil Nadu boasts a strong economic foundation built on agriculture, fisheries, and forestry.

Economic and Industrial Landscape

• Tamil Nadu’s economic profile has been historically influenced by agriculture, fisheries, and forestry.
• However, the state’s industrial landscape has seen significant diversification with sectors such as textile milling, food processing, pharmaceuticals, chemicals, and electronics gaining prominence.
• These industries are increasingly important contributors to the state’s Gross Domestic Product (GDP – 24.68 lakh crore as of 2023), reflecting the state's evolving economic structure.

Tracking State Performance

• Tamil Nadu leads the nation in several key industrial metrics.
• According to a report by India’s Ministry of Statistics and Programme Implementation, Tamil Nadu ranks first among Indian states in both the number of factories and the size of its industrial workforce.
• On April 19, 2024, it was reported that Tamil Nadu had surpassed Karnataka and Uttar Pradesh to become the leading state in exporting electronic goods for the fiscal year 2023–2024.
• The state’s exports saw a remarkable increase of 78%, growing from US $5.37 billion in 2022–2023 to US $9.56 billion in 2023–2024.
• The industrial sector is a significant driver of economic growth in Tamil Nadu.
• It contributes heavily to the Gross State Domestic Product (GSDP) and employment.

• This sector is vital in stimulating the overall growth of the economy, with its activities closely interconnected with the primary and tertiary sectors through forward and backward linkages.
• Industrial policy initiatives in the state are designed against the backdrop of the increasing multifaceted globalization of production systems, particularly in terms of technology transfers and the development of physical infrastructure for sustained growth.

Industrial Policy and Vision Tamil Nadu 2023

• The Industrial Policy of Tamil Nadu focuses on the optimal use of resources, the upgrading of managerial skills, and administrative and technical improvements in the manufacturing and infrastructure sectors for higher growth.
• Tamil Nadu has established itself as a leader in the Information Technology sector, with Chennai becoming a hub for the software industry.
• Additionally, the state has made significant progress in the automobile sector.
• It is poised for substantial growth in the textile sector, especially with the abolition of the Textile Quota regime.
• The electronics revolution in the state has also attracted major companies like Ford, Hyundai, Nokia, Foxconn, and Flextronics.
• Today, Tamil Nadu has emerged as the second-largest state economy in India, following Maharashtra, which has a much larger area and population.
• Tamil Nadu is ranked first among Indian states in terms of exporting and operational Special Economic Zones (SEZs).
• As of 2024, at 54, Tamilnadu has highest concentration of operational SEZs, accounting for one-third of exports.

• Vision Tamil Nadu 2023 envisages an investment of Rs.15 lakh crore being invested in the state before the year 2023.
• This includes investments in projects falling under manufacturing, infrastructure, and services sectors.
• To promote further investment and facilitate infrastructure projects under the Public-Private Partnership (PPP) mode, the Government of Tamil Nadu enacted the Tamil Nadu Infrastructure Development Act 2012 and constituted the Tamil Nadu Infrastructure Development Board accordingly.
• Out of 217 infrastructure projects listed in Vision Tamil Nadu 2023, 88 projects are in various stages of implementation.
• The successful implementation of the remaining projects is expected to achieve the milestones envisioned in Vision Tamil Nadu 2023.

Tamil Nadu Industrial Investment Corporation Ltd. (TIIC)

• The Tamil Nadu Industrial Investment Corporation Ltd. (TIIC), established in 1949, is the first state-level financial corporation in the country.
• It is catering to the needs of Micro, Small, and Medium Enterprises (MSMEs), especially first-generation entrepreneurs.

• TIIC also provides financial support to major industrial units in the state. In recent years, a portion of the financial support provided by TIIC has been directed toward industries such as sugar, cement, textiles, textile machinery, and aluminium.
• TIIC has also played a key role in promoting industrial clusters, including hosiery in Tirupur, textiles and foundries in Coimbatore, sericulture and sago in Salem and Dharmapuri, and windmills in Tirunelveli, Palladam, Udumalpet, and other areas.

Tamil Nadu Small Industries Development Corporation Ltd. (TANSIDCO)

• The Tamil Nadu Small Industries Development Corporation Ltd. (TANSIDCO) was established in 1970 with the primary objective of assisting and promoting the interests of Micro, Small, and Medium Enterprises (MSMEs) in the state.
• Its vision is "to forge sustainable partnerships with the MSMEs for enhancing their competitiveness" in the market structures.

• To achieve this vision, TANSIDCO is proactively working towards the development of industrial estates and associated social infrastructure, the promotion of clusters, and the establishment of Common Facility Centres (CFCs) for MSMEs.
• TANSIDCO also assists MSMEs in purchasing industrial inputs and provides best practices in managerial and manufacturing processes.
• It facilitates access to capital and aids in marketing manufactured products.
• Currently, TANSIDCO is maintaining 35 industrial estates created by the Government of Tamil Nadu and 59 industrial estates established independently.
• Two new industrial estates have been set up, one each at Rasathavalasu (Tiruppur district) and Venmanathur (Villupuram district), with 13 more in different stages of progress.
• Vision Tamil Nadu 2023 envisions that TANSIDCO will ensure that common facilities and utilities are adequately provided in the industrial estates to foster the development of SMEs as a strategic initiative to make them more vibrant.
• TANSIDCO also supplies raw materials like iron and steel, wax, potassium chlorate, and TNPL paper to MSMEs, and extends marketing assistance to help them sell their finished products and bulk-procured raw materials.

State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT)

• Established in 1971, SIPCOT caters to the needs of large-scale industries in Tamil Nadu by extending financial assistance and maintaining industrial complexes with essential infrastructure.
• In the post-reform period, SIPCOT’s developed industrial complexes have housed various manufacturing industries, including giants like Daimler, Hyundai, Saint Gobain, Dell, Renault and Nissan, Ashok Leyland, and Nokia.

• Acting as a nodal agency, SIPCOT implements industrial assistance schemes announced by the Government of Tamil Nadu, providing incentives to mega-industries with high investment and employment potential.
• SIPCOT has developed 19 industrial complexes, including seven Special Economic Zones (SEZs), across 12 districts, acquiring 27,000 acres of land.
• Of this, 20,806 acres have been allotted to 2,184 industrial units, attracting Rs.1.00 lakh crore in investment and creating direct and indirect employment opportunities for 5.55 lakh individuals.
• To further promote industrial growth, SIPCOT aims to establish more industrial parks in southern districts.
• It also plans to create a land bank of 20,000 acres.
• Additionally, another 25,000 acres have been identified to spur industrial development in backward districts.
• The organization has also promoted seven sector-specific SEZs (SSSEZs) across the state, attracting industries such as Dell, Samsung Electronics, Motorola, Sanmina, and Moser Baer.

Tamil Nadu Industrial Development Corporation Ltd. (TIDCO)

• Established in 1965, TIDCO is instrumental in promoting medium and large industries in Tamil Nadu through joint ventures and collaborations with the private sector.
• It facilitates the development of large industrial and infrastructural projects, particularly those involving capital and employment-intensive industries.
• The vision behind this is to make Tamil Nadu a leading state in the country.
• TIDCO has been involved in several joint ventures to manufacture a variety of products, including wristwatches, auto parts, iron and steel products, textiles, chemicals, fertilizers, pharmaceuticals, and food and leather products.

• The corporation has also ventured into the establishment of IT Parks, Bio-Tech Parks, SEZs, infrastructure projects, and Agri Export Zones.
• Notably, TIDCO is promoting Special Investment Region Projects in joint ventures and has proposed the development of an Integrated Financial Service Centre (IFSC) near Chennai to attract both domestic and international financial institutions, further supporting industrial development in the state.

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