Investing in Tamil Nadu

Tamil Nadu has emerged to be the third-largest state in India in terms of their economy. Presently, Tamil Nadu has a Gross Domestic Product (GDP) of more than US$23 billion at the official exchange rate. Based on the Purchasing Power Parity (PPP) method, its GDP is US$100 billion. Over the years, Tamil Nadu has maintained the average economical growth of approximately 6–7%, which is well above the average for all of India.


Tamil Nadu has become a favored investment destination. Tamil Nadu has a unique economy in having a network of more than 100 industrial parks that contain developed plots, which are offered to people wanting to start a new business. Unlike many other states in India, wherein all the economic resources are concentrated in 1–2 areas, Tamil Nadu has managed to disperse their economic resources.


Tamil Nadu has plenty of windmills that it relies upon to produce electricity. It's one of the few states in India that sells electricity to other states. Tamil Nadu supplies India with over half of its wind-created electricity. The Tamil Nadu government operates a large company comprising a watch manufacturer and paper mill. This particular company sells watches under the brand name “Titan” and is the sixth-largest watch manufacturer in the world.


Tamil Nadu boasts well-developed and top-notch industrial, social, and physical infrastructure.

Physical Infrastructure

1. Ports:


Tamil Nadu has numerous ports of which 3 major ports are located at Chennai, Ennore, and Tuticorin. A desalination plant, to be set up in Chennai, is supposed to enhance the existing availability.


2. Railways:


Tamil Nadu has an extensive railway network of 4,180 km with a density of 32.2 km per 1,000 sq km.


3. Airways:


Tamil Nadu has the third largest airport in India.  The city of Tiruchirappalli hosts an international airport. 7 international airlines run 28 exclusive cargo flights every week, and an EDI facility is provided for the clearance of customs.


4. Roads:


The state of Tamil Nadu consists of a wide network of roads that link it to major urban centers, rural habitations, and agricultural markets. Tamil Nadu is one of the terminuses for the Golden Quadrilateral project. The total road length of Tamil Nadu is 167,000 km.

Developing and Leading Sectors in Tamil Nadu

1. Biotechnology:


Tamil Nadu has plenty of bioresources. Various geographical terrains in the state offer tremendous biodiversity to the state. Investment opportunities exist with different biotechnology segments, namely (i) Medical/Healthcare, (ii) Food, (iii) Agriculture, (iv) Environment, and (v) Industrial Products.


2. Software and Electronics:


Tamil Nadu has recorded significant growth in IT, BPO, ITES, and BPO Hardware manufacturing sectors. Many software units are growing rapidly in the state. Tamil Nadu has become one of the most preferred destinations for both domestic and foreign direct investment. Leading Indian and international IT major corporations including Tata Consultancy Services (TCS), HCL, Patni Computers, Infosys, Standard Chartered Bank, ABN Amro, Accenture, Verizon, and Hexaware have established their operations in Tamil Nadu.


3. Chemicals and Petrochemicals


Tamil Nadu has a strong base in the chemicals industry and its petrochemical industry is on the threshold of rapid expansion. The city of Manali, located at the outskirts of Chennai, has become a major petrochemical complex. Leading producers, such as Orchid, Dadha Pharma, Cephlosporin, Malladi and Citadel, have set up their operations in Tamil Nadu.


Apart from these sectors, Tamil Nadu has a growing Agro and Food Processing and Automobile sector.

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