Chennai: Despite the recent economic crisis, Tamilnadu has managed to attract several crores of rupees worth foreign investments to the State in the past few months, thanks to proactive steps by the government led by Chief Minister Edappadi K Palaniswami.
Tamilnadu ranks first in terms of industrial performance, number of factories, special economic zones and annual turnout of skilled manpower in India.
Officials said that so far around Rs 20,000 crore worth investments have been made using the single window scheme which was introduced recently. They said that not just big industries, but applications have been received from more than 1,000 MSMEs as well.
”Approval has been granted for about 900 MSMEs. Some of the applications have been rejected due to minor corrections which the companies have been asked to look into. The single window scheme has ensured that investors have an hassle-free experience in starting their industries,” the officials added.
Reports state that the the foreign direct investments (FDI) has increased by Rs 46,427 crore. ”It was Rs 1.33 trillion from April 2000 to March 2017. From the time Palaniswami took over as Chief Minister in February 2017, till June this year the FDI was Rs 1.80 trillion. 47 per cent of the FDI has come after the two Global Investors Meets held in the State. Tamilnadu stands fourth in FBI inflows into India with 7.7 per cent of India’s total FDI inflow in 2017-18,” the reports added.
While there is no dearth of labour in the State, acquiring lands and getting clearances was seen as a problem by investors.
Officials said that some of these problems have already been addressed and a high-powered committee for investment facilitation and single-window clearance has been constituted with the Chief Minister as the Chairman.
Reports state that despite a 24 per cent deficit in North East monsoon which gives the State 50 per cent of its annual average rainfall and the ill-effects of the cyclone Gaja in November last year, Tamilnadu’s economy grew at a healthy 8.17 per cent that was well above the national average of 6.81 per cent in 2018-19.
”Between 2011-12 and 2018-19, the State’s Gross Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.46 per cent to Rs 16.06 trillion, while the Net Domestic Product (NSDP) expanded at a CAGR of 11.45 per cent to Rs 14.41 trillion,” according to statistics.
To ensure the ease of business, several policies were introduced by the government in various fronts, officials said.
Following his recent three nation tour, Palaniswami said that he had attracted Rs 8,835 crore investment and it would provide employment opportunities to over 35,000 people. He said deals have been inked with 41 companies and the government would expeditiously render all support to them for commencing operations.
Chief Secretary K Shanmugam who accompanied Palaniswami during his foreign visits said, ”We have the second largest economy in India among the States with a GDP of $250 billion. Between April 2000 and March 2019, we have attracted FDI worth $29.848 billion, which makes us the fourth largest FDI destination region in the country.”
Tamilnadu’s enviable growth record and ability to manage crisis also make it attractive for any investor.
Economist Prithvi Raj said that going by the growth rate of the State since 2016-2017, it seems to be immune to the macro-economic shock that the country’s economy has faced in the past few years.
”In the last couple of years, there were concerns about industry and the State government’s fiscal situation, apart from political uncertainty. Despite all these factors, the fact that the State has been doing well on the economic front suggests that its economy is resilient,” he added.
|Some of the notable policies introduced by Tamilnadu in the past few years.|
|* Tamilnadu Food Processing Policy 2018
* Tamilnadu Startup and Innovation Policy 2018-2023
* Tamilnadu IT policy 2018
* Tamilnadu Aerospace and Defence Industrial Policy 2019
* Tamilnadu Electric Vehicle Policy – 2019
* Tamilnadu Solar Energy Policy – 2019
* Tamilnadu New Integrated Textile Policy 2019
* Tamilnadu Combined Development and building Rules 2019.