Proving this point, a report by an industry body has said the State has 'successfully attracted' investment proposals worth about Rs 9.2 lakh crore in about 1,637 projects as of June 2012, with a year-on-year increase of about 15 per cent.
With a share of over Rs 3.5 lakh crore, power sector has accounted for lion's share of about 38.5 per cent of the total investments followed by services (32.3 per cent), manufacturing (17.5 per cent) and real estate (9.6 per cent), according to a strategy paper titled 'Achieving Higher Growth in Tamilnadu', released by The Associated Chamber of Commerce and Industry of India (ASSOCHAM) here Wednesday.
'Undeterred by the tides of the on-going economic slowdown, Tamilnadu has emerged as a prime destination for both domestic and foreign investors,' said Assocham president Rajkumar Dhoot, while releasing the report.
Growing at a compounded annual growth rate (CAGR) of over 10 per cent, the State domestic product (SDP) of Tamilnadu grew to over Rs 428 lakh crore, according to the strategy paper prepared by the ASSOCHAM research bureau.
Services sector accounted for over 65.8 per cent of SDP of Tamilnadu clocking a CAGR of over 12 per cent. Besides, the industrial sector accounted for over 26.5 per cent and expanded by over seven per cent CAGR while the agriculture and allied activities contributed about 7.6 per cent of the SGDP thereby, registering a CAGR of over four per cent, said ASSOCHAM.
Manufacturing and construction emerged as the most significant industrial activities. Manufacturing output and construction activities recorded about 17 per cent and about nine per cent growth rate between 2004-05 and 2011-12.
Tamilnadu has the highest share of services sector to the GSDP (64.7 per cent) followed by Maharashtra (61.9 per cent), Andhra Pradesh (53.6 per cent) and Gujarat (46 per cent).