Economy of Tamil Nadu
Tamil Nadu possesses the Second-largest economy (2013–14) in India after [Maharashtra].It is most industrialised state  As of 2010–11, Tamil Nadu had a per capita GDP of $1,622, the sixth highest in India. Tamil Nadu's gross state domestic product for 2011–2012 was 4.28 trillion (short scale) or $145,868 million. The state had a growth of 9.4% in 2011–2012.
According to the 2011 census, Tamil Nadu is the most urbanised state in India (49%), accounting for 9.6% of the urban population while only comprising 6% of India's total population. Service contributes to 45% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 21%. Government is the major investor in the state with 51% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. Tamil Nadu has a network of about 113 industrial parks and estates offering developed plots with supporting infrastructure. It has been ranked first by the Economic Freedom Rankings for the States of India
- 1 Macroeconomic trend
- 2 Agriculture
- 3 Industry and manufacturing
- 4 Transportation
- 5 Tourism
- 6 Services
- 7 Government revenues
- 8 Government debt
- 9 See also
- 10 Notes
- 11 Citation
|Year||Gross state domestic product|
The state's debt was estimated at 35 per cent of GDP in 2005.
Tamil Nadu has historically been an agricultural state, while its advances in other fields launched the state into competition with other areas. Even so, Tamil Nadu is a leading producer of agricultural products in India. Tamil Nadu agriculture is heavily dependent on the river water and Monsoon rains. The perennial rivers are Palar, Cheyyar, Ponnaiyar, Kaveri, Meyar, Bhavani, Amaravati, Vaigai, Chittar and Tamaraparani. Non-perennial rivers include the Vellar, Noyal, Suruli, Gundar, Vaipar, Valparai and Varshali. Tamil Nadu is also the leading producer of kambu, corn, rye, ground nuts, oil, seeds and sugar cane in India.
Erode is the world largest producer of turmeric. Around 68% of the world's turmeric and 84% of India's turmeric are from Erode. Also, Erode has the largest turmeric market in the world.
At present, Tamil Nadu is India's second biggest producer of rice. Tamil Nadu is the home to Dr. M. S. Swaminathan, known as the "father of the Green Revolution" in India. The town of Namakkal is a major poultry hub of India.
A technological and industrial park (designated as a Special Economic Zone) was originally planned to be set up in Nanguneri, in the Tirunelveli district with an investment of 60 billion (US$1.6 billion). However, recently developmental plans point to a re-orientation of this project to Tuticorin.
Industry and manufacturing
One of the global electrical equipment public sector company BHEL has manufacturing plants at Tiruchirappalli and Ranipet. The Tamil Nadu state government owns the Tamil Nadu Newsprint and Papers (TNPL), the world's biggest bagasse-based paper mills in Karur as well as the world's sixth largest manufacturer of watches together with TATA, under the brand name of "Titan". 40 percent of all wind-generated electricity in India is created by windmills in Tamil Nadu. Danish wind power company NEG Micon has established its manufacturing unit in Chennai. Tamil Nadu is a leading producer of cement in India, if manufacturer of power plants cethar vessels in Tiruchirappalli.[clarification needed] It is the home for leading cement brands in the country such as Chettinad Cements (Karur), Dalmia Cements Tiruchirappalli and Ariyalur, Ramco cements (Madras Cement Ltd)etc., There is an ACC cement factory located at Madukarai in Coimbatore and UltraTech Cement(Aditya Birla Group) at Reddipalayam in Ariyalur.
High-density PolyEthylene (HDPE) mono filament yarn and associated products are manufactured in Karur. More than 2,000 units in & around the town manufacture fabrics for mosquito nets and fishing nets. More than 60% mosquito nets in India are manufactured in & around Karur which directly employs 50,000 people.
The region around Salem is rich in mineral ores. The country's largest steel public sector undertaking, SAIL, has a special steel plant in Salem, which is being expanded at a cost of 20 billion rupees. Salem also has magnesite factories operated by private and public sectors (public: Burn Standard & Co; private: Dalmia Magnesites). Tata have their presence in the form of Tata Refractories in Salem.
Mettur, a town which is located 50 km north of Erode and west of Salem, has a number of notable industries, including JSW Steels, MALCO (which has currently suspended its aluminium production), Chemplasst, Thermal Power Plant, Hydel Power plant.
Many heavy engineering and manufacturing-based companies are centred in and around the suburbs of Chennai (nicknamed by some, "The Detroit of Asia") . Global vehicle manufacturing giants like Hyundai, Ford, BMW, Mitsubishi, Komatsu, Danfoss ,Nissan-Renault, Daimler Trucks, Caterpillar Inc., Caparo and Michelin as well as domestic heavyweights like Madras Rubber Factory (MRF), TI cycles of India, Ashok Leyland, Royal Enfield, Mahindra & Mahindra, TAFE Tractors and The TVS Group (TVS) have manufacturing investments in Chennai. Everything from automobiles, railway coaches, battle-tanks, tractors, motorbikes and heavy vehicles are manufactured in Tamil Nadu. Heavy Vehicles Factory in avadi was established in 1965. A large number of auto component industries are present around Coimbatore & Erode cities. Namakkal district has emerged as one of the transportation hubs of the TN State. About 40 per cent of the trucks operated in the State are from Namakkal and the district, noted for truck body building, has over 18,000 trucks, including 3,000 tankers and 2,500 trailers, with an annual addition of approximately 500 trucks. Karur is known for its bus body building industries where most of the coach for buses used in south India are built. Over 11.2% of the S&P CNX 500 conglomerates have corporate offices in Tamil Nadu.
The textile industry plays a significant role in the Indian economy by providing direct employment to an estimated 35 million people, and thereby contributing 4% of GDP and 35% of gross export earnings. The textile sector contributes to 14% of the manufacturing sector. The cities of Coimbatore, Erode, Karur, Gobichettipalayam, Perundurai and Tirupur in Tamil Nadu, are the largest garment exporters in India and sometimes referred to as the textile valley of India. In 2004, the export turnover from here was more than $1 billion. Some 7,000 garment units in the town provide employment opportunity to 1 million people. About 62% of India's textile trading takes place only in the city of Erode and 56% of India's total knitwear exports come from Tirupur. The Export Import Policy of 2002–2007 acknowledges Tirupur for its contribution to the export efforts. Coimbatore accounts for nearly $700 million and next to Coimbatore, the town of Karur & Erode generates around $300 million a year in foreign exchange through home textile exports such as bed linens, kitchen linens, toilet linens, table linens and wall hangings. Madurai and Kanchipuram is very famous for handloom sarees. This handloom sarees are on sale all over India. Tamil Nadu, Karnataka, and Kerala are the main states for wholesale sarees. This sarees manufacturing raw materials are purchased from Coimbatore, Erode and Salem. Gobichettipalayam has the India's first automatic silk reeling unit.
Electronics manufacturing is a growing industry in Tamil Nadu. Chennai has emerged as EMS Hub of India. Companies like Flextronics, Motorola, Sony-Ericsson, Foxconn, Samsung, Cisco, and Dell have chosen Chennai as their South Asian manufacturing hub. Products manufactured include circuit boards and cellular phone handsets. Ericsson also has a Research and Development facility in Chennai. Big EPC companies have set up their Engineering centres which include Saipem India Projects Ltd, Technip, Foster Wheeler, Schneider Electric, Mott MacDonald, Petrofac, Austrian company "Austrian Energy and Environment" have also a design office here besides local giant ECC Larsen & Toubro. Sanmina-SCI is the latest company to invest in Tamil Nadu to create a state of the art manufacturing facility. Nokia Siemens Networks has decided to build a manufacturing plant for wireless network equipment in Tamil Nadu.
The state with a projected population of about 66.5 million in year 2009 has high mobile penetration rate in India. According to statistics released by Telecom Regulatory Authority of India (TRAI), the state had a total subscriber base of 43 million mobile customers at the beginning of August 2009.
Hundreds of leather and tannery facilities are located around Vellore and its nearby towns, such as Ranipet, Ambur and Vaniyambadi. The Vellore district is the top exporter of finished leather goods in the country. Vellore leather accounts for more than 37 percent of the country's export of leather and leather-related products (such as finished leathers, shoes, garments and gloves).
The state accounts for 70 per cent of leather tanning capacity in India and 38 per cent of leather footwear and components. The exports from Tamil Nadu are valued at about US$762 million, which accounts for 42 per cent of Indian leather exports. Hundreds of leather and tannery industries are located around Vellore, Dindigul and Erode its nearby towns such as Ranipet, Ambur, Perundurai and Vaniyambadi. The tanning industry in India has a total installed capacity of 225 million pieces of hide and skins, of which Tamil Nadu alone contributes to 70 per cent. Tamil Nadu enjoys a leading position with 40 per cent share in India's export. It currently employs about 2.5 million persons. Leather exports by the end of 2000–2001 were INR90 billion. Central Leather Research Institute (CLRI), a CSIR research laboratory, is located in Chennai, the state capital. Footwear Design & Development Institute (FDDI) - CHENNAIFDDI / Ministry of Commerce & Industry, Government of India, Mission FDDI is the first training Institute to achieve the prestigious ISO 9001 and ISO 14001 certification. The Institute believes that dedication, sincerity and hard work leads to excellence and therefore, its motto is "Dedication to Excellence." Description
FDDI, Chennai campus is located at Irungattukottai near SIPCOT Footwear Park, 40 minutes drive from Chennai. The campus area spread over 15 acres is situated in a calm and serene surrounding with the state-of-the art campus housing & buildings having a built-up area of more than 400,000 sq. ft. campus has an excellent infrastructure and modern facilities, which assists in conducting the various academic programmes. The Institute has a state-of-the-art library, computer lab, well furnished and centrally air-conditioned building, class rooms and lecture halls, latest multi-media audio-video, educational support for teaching and a fully equipped auditorium. The campus is equipped with International Testing Laboratory.
Chennai is the biggest hub of the world leather industry. Every exporter had an office in Chennai & most of the leather and footwear industry is located in and around Chennai. Tamil Nadu accounts for 30 per cent of leather exports and about 70 per cent of leather production in the country. The large scale presence of the tanning industry has resulted in Tamil Nadu becoming a dominant production centre in the country for leather and leather based products. In Tamil Nadu 0.5 million people are employed in the industries dealing with leather and leather based products. With the expansion and huge investment coming up in this from the national and international reputed brands the employment opportunities in this sector is going to increase many fold. It is estimated that leather industry will require at least one million additional manpower in the next five years. The skill gaps at the level of designers, technologists and management professionals are more stark and demanding. It is where the prospective professionals can take advantage of the courses being offered by FDDI Chennai and opt for lucrative and promising career jobs.
The town of Sivakasi is a leader in the areas of printing, fireworks, and safety matches. It was fondly called as Kutty Japan or "little Japan" by Jawaharlal Nehru. It contributes to 80% of India's production of safety matches as well as 90% of India's total fireworks production. Sivakasi provides over 60% of India's total offset printing solutions and ranks as one of the highest taxpaying towns in India. Sivakasi also is a 100% employed town, putting it in the company of very few towns in India.
This is a chart of proven reserves of major minerals of Tamil Nadu in 2001 by Department of Geology and Mining with figures in tonnes.
Tamil Nadu has a few mining projects based on Titanium, Lignite, Magnesite, Graphite, Limestone, Granite and Bauxite. The first one is the Neyveli Lignite Corporation that has led development of large industrial complex around Neyveli in Cuddalore district with Thermal power plants, Fertilizer, Brequetting and Carbonisation plants. Tata Iron and Steel Company (TISCO) have entered into MoU with Government of Tamil Nadu in June 2002 for establishing a titanium dioxide (TiO2) plant with a project outlay of $650 million. Magnesite mining is done at Salem apart from which mining of Bauxite ores are carried out at Yercaud and this region is also rich in Iron Ore Kanjamalai. Molybdenum is found in Dharmapuri, and is the only source in the country.
Starting from the second quarter of 2010, the total energy demand in Tamil Nadu state is increasing exponentially and the state government is helpless to cut off power supply to an vast extent to the consumers. The complete state (except Chennai city, the capital) suffers a power cut for more than 11 hours a day. The city of Chennai only has 2 hours of power cuts a day.
The Tamil Nadu Energy Development Agency (TEDA) is a Tamil Nadu government promoting renewable energy sources and energy conservation activities. The agency has largely been responsible for instigating the tremendous growth of Tamil Nadu in the development of wind power. Tamil Nadu is in the forefront of all other Indian states in installed capacity.
The once-impoverished village of Muppandal benefited from the building of the nearby Muppandal wind farm, a renewable energy source, supplying the villagers with electricity for work. Wind farms were built in Nagercoil and Tuticorin apart from already existing ones around Coimbatore, Pollachi, Dharapuram and Udumalaipettai. These areas generate about half of India's 2,000 megawatts of wind energy or two percent of the total power output of India.
The Kalpakkam Nuclear Power Plant, Ennore Thermal Plant, Neyveli Lignite Power Plant, Virudhachalam Ceramics and the Narimanam Natural Gas Plants are major sources of Tamil Nadu's electricity. It is presently adding the Koodankulam Nuclear Power Plant to its energy grid. Tamil Nadu sources some of its power needs from renewable sources with wind power contributing over 2000 MW or over 20% of the needs. Tamil Nadu is facing largest power shortage in 2013 (34.1% deficit), the highest in the country, due to industrialization over the last decade. India's leading steel producer SAIL has a steel plant in Salem, Tamil Nadu. Tamil Nadu ranks first nationwide in diesel-based thermal electricity generation with national market share of over 34%.
The Mettur Dam is one of the largest dams in India. It was completed in 1936. The total length of the dam is 1700 meters. It is also called Stanley Reservoir. The Mettur Hydro Electrical power project is also quite large Mettur Dam. Mettur has a number of industries (50 km from Salem city): SISCOL, MALCO (Madras Aluminium Company owned by Vedanta Resources), Chemplast (former known as Mettur Chemicals), Thermal power plant, Hydel power plant and huge number of chemical industries. There are many other dams that provide irrigation and drinking water, including the Vaigai Dam.
Tamil Nadu at this time is the only state to have a formal Bio-Diesel Policy to use jatropha crops as a source of biofuel and to distribute wasteland to the poor farmers for the planting of these crops.
In March 2008, Signet Solar Inc. signed a memorandum of understanding with the State government to build a INR 20 billion thin-film silicon photovoltaic module manufacturing plant in the Sriperumbudur Special Economic Zone.
In June 2008, Moser Baer inked a MoU with the state government to build INR 20 billion plant for manufacturing of silicon-based photovoltaic thin film modules and allied products in the Oragadam Special Economic Zone which is closer to the Signet Solar's plant in sriperumbudur.
Tamil Nadu has a well established transportation system that connects all parts of the state. This is partly responsible for the investment in the state. Though the present transportation system is substantial, it needs to be developed further to keep pace with the rapid increase in use. Tamil Nadu is served by an extensive road network in terms of its spread and quality, providing links between urban centres, agricultural market-places and rural habitations in the countryside. There are 28 national highways in the state, covering a total distance of 5,036 km (3,129 mi). The state is also a terminus for the Golden Quadrilateral project that is 99.2% completed as of 31 July 2010. Chennai CMBT and Tirunelveli city Mofussil Bus Terminus are the largest and the second largest bus terminals in Asia respectively. The state has a total road length of 167,000 km, of which 60,628 km are maintained by Highways Department. This is nearly 2.5 times higher than the density of all-India road network. It ranks second with a share of over 20% in total road projects under operation in the public-private partnership (PPP) model. It is currently working on upgrading its road network, though the pace of work is considered slow.
Tamil Nadu has a well-developed rail network as part of Southern Railway. Headquartered at Chennai, the present Southern Railway network extends over a large area of India's Southern Peninsula, covering the states of Tamil Nadu, Kerala, Puducherry, minor portions of Karnataka and Andhra Pradesh. Tamil Nadu has a total railway track length of 6,693 km and there are 690 railway stations in the state. The system connects it with most major cities in India. Main rail junctions in the state include Chennai, Coimbatore, Erode, Madurai, Salem, Tiruchirapalli, Tirunelveli and Nagercoil. Chennai has a well-established Suburban Railway network and is in the process of developing a metro.
Tamil Nadu has a major international airport, Chennai International Airport, that is connected with 19 countries with more than 329 direct flights every day. Other international airports in Tamil Nadu include Coimbatore and Trichy. Chennai International Airport is currently the third largest airport in India after Mumbai and Delhi and has a passenger growth of 18%. It also has domestic airports at Tuticorin, Salem and Madurai make several parts of the state easily accessible. Increased industrial activity has given rise to an increase in passenger traffic as well as freight movement which has been growing at over 18 per cent per year.
Tamil Nadu has three major ports at Chennai, Ennore, Kattupalli and Tuticorin, as well as one intermediate port, Nagapattinam, and seven minor ports, Rameswaram, Kanyakumari, Cuddalore, Colachel, Karaikal, Pamban and Valinokkam of which are currently capable of handling over 73 million metric tonnes of cargo annually (24 per cent share of India). All the minor ports are managed by the Tamil Nadu Maritime Board. Chennai Port is an artificial harbour situated on the Coromandel Coast in South-East India and it is the second principal port in the country for handling containers. It is currently being upgraded to have a dedicated terminal for cars capable of handling 400,000 vehicles by 2009 to be used by Hyundai, Ford and Nissan Renault. Ennore Port was recently converted from an intermediate port to a major port and handles all the coal and ore traffic in Tamil Nadu. The volume of cargo in the ports grew by 13 per cent over 2005. The Tuticorin Port is expanding its facilities at the cost of US$1.6 billion. The Sethusamudram Shipping Canal Project will transform the Tuticorin port into a transshipment hub similar to those in Singapore and Colombo. The ports are in need of improvement and some of them have container terminals privatised.
Tamil Nadu has since ancient past, has been a hub for tourism. In recent years, the state has emerged as one of the leading tourist destination for both domestic and foreign tourists. Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation (TTDC), a Government of Tamil Nadu undertaking. The state currently ranks the highest among Indian states with about 248 million arrivals in 2013. The annual growth rate of the industry stood at 16 per cent. Approximately 2,804,687 foreign and 111,637,104 domestic tourists visited the state in 2010.
The state boasts some of the grand Hindu temples built in Dravidian architecture. The Brihadishwara Temple in Thanjavur, built by the Cholas, the Airavateswara temple in Darasuram and the Shore Temple, along with the collection of other monuments in Mahabalipuram (also called Mamallapuram) have been declared as UNESCO World Heritage Sites.
Madurai is home to the Madurai Meenakshi Amman Temple. Sri Ranganathaswamy Temple, Srirangam is the largest functioning temple in the world, Tiruchirappalli where the famous Rockfort Temple is located, Rameshwaram whose temple walk-ways corridor (Praagarams) are the longest 1.2 km (0.75 mi) of all Indian temples in the world, Kanchipuram and Palani are important pilgrimage sites for Hindus. Other popular temples in Tamil Nadu include those in Gangaikonda Cholapuram, Chidambaram, Thiruvannaamalai, Tiruchendur, Tiruvarur, Kumbakonam, Srivilliputhur, Tiruttani, Namakkal, Vellore, Karur, Bhavani, Coimbatore, Kanniyakumari.
Tamil Nadu is also home to hill stations like Udhagamandalam (Ooty), Kodaikanal, Yercaud, Coonoor, Topslip, Valparai, Yelagiri and Manjolai. The Nilgiri hills, Palani hills, Shevaroy hills, Kolli Hills and Cardamom hills are all abodes of thick forests and wildlife. Tamil Nadu has many National Parks, Biosphere Reserves, Wildlife Sanctuaries, Elephant and Bird Sanctuaries, Reserved Forests, Zoos and Crocodile farms. Prominent among them are Mudumalai National Park, The Gulf of Mannar Biosphere Reserve, Anaimalai Wildlife Sanctuary, Vedanthangal Bird Sanctuary and Arignar Anna Zoological Park.The mangrove forests at Pichavaram are also eco-tourism spots of importance.
Kanyakumari, the southernmost tip of peninsular India, is famous for its beautiful sunrise, Vivekananda Rock Memorial and Thiruvalluvar's statue built off the coastline. Marina Beach in Chennai is one of the longest beaches in the world. The stretch of beaches from Chennai to Mahabalipuram are home to many resorts, theme parks and eateries.
The prominent waterfalls in the state are Courtallam, Hogenakkal, Papanasam, Manimuthar, Thirparappu, Pykara and Silver Cascade. The Chettinad region of the state is renowned for its Palatial houses and cuisine. With medical care in Chennai, Vellore, Coimbatore and Madurai, Tamil Nadu has the largest numbers in Medical tourism in India.
Tamil Nadu has 570 engineering colleges, the most of any state in India. Tamil Nadu has a network of about 110 industrial parks and estates offering developed plots with supporting infrastructure. Also, the state government is promoting other industrial parks like Rubber Park, Apparel Parks, Floriculture Park, TICEL Park for Biotechnology, Siruseri IT Park, and Agro Export Zones among others. Tamil Nadu has the largest number of Small and medium enterprises (SMEs) in India.
|Year||Software exports||Software companies|
Chennai is the second largest software exporter in India, next to Bangalore. India's largest IT park is housed at Chennai. Software exports from Tamil Nadu during 2008–09 rose 29 per cent to touch 366.80 billion, involving a workforce of 280,000. Chennai is a hub for e-publishing, as there are 47 e-publishing units registered with the STPI in Chennai and 25 in Bangalore. Companies such as HCL, Wipro, TCS, L&T, Satyam, Infosys, Cognizant Technology Solutions, Covansys, Ford Information Technology, Xansa, Verizon, iSoft, iNautix, Electronic Data Systems, Bally and many others have offices in Chennai. Infosys Technologies has set up India's largest software development centre to house 25,000 software professionals at an estimated investment of 12500 million (US$200 million) in Chennai. India's largest IT park – SIPCOT is housed at Siruseri – Chennai, It has numerous IT companies such as TCS, CTS, Syntel, Steria, Polaris, Patni, Hexaware etc. TCS alone has acquired 70 acres (280,000 m2) of land at a cost of about Rs. 130 million with an employee force of 25,000.
Business process outsourcing services:
Chennai is now emerging as the most preferred destination for high-end BPOs in financial services, health care and other back-office services for multinational companies. Companies like Ajuba Solutions (Global provider of health care revenue cycle outsourcing services), Congruent Solutions (back-end services for California-based retirement funds), Secova eServices (HR service provider for US clients), Firstsource (Business Process Management for BFSI, Healthcare, Telecom and Publishing clients), Lason India (data processing for healthcare and financial services clients in the US) and OfficeTiger (outsourcing of creative works) have set up centres here to take advantage of Chennai's "quality talent pool and infrastructure". Stanchart, eServe (Citibank), ABN AMRO and World Bank have also chosen the city for their back-office functions. Tamil Nadu also has a number of rural BPO companies like Desicrew Solutions
In the 2006 surveys, Chennai has been rated as the most attractive city for offshoring services.
Knowledge process outsourcing:
Chennai is also the preferred destination for companies outsourcing their high-end knowledge intensive operations. Testimony to this is the presence of major market research companies such as Frost & Sullivan and equity research companies such as Irevna in Chennai. This is the next high growth area that Chennai is witnessing.
Tamil Nadu ranks fourth nationwide of all state governments in tax revenue. (See: States of India by tax revenues.) This is a chart of trend of tax revenues (including the shares from Union tax pool) extracted from the Consolidated Fund of the Government of Tamil Nadu with figures in millions of Indian Rupees. See also the Finance Commission of India report. Tax revenues of local bodies are excluded.
|Year||Tax revenues||Sales tax||Excise duties||Registration fees||Corporation tax||Vehicle tax|
This is a chart of trend of non-tax revenues and grants-in-aid extracted from the Consolidated Fund of the Government of Tamil Nadu with figures in millions of Indian Rupees. See also  and . Non-tax revenues of local bodies are excluded.
Amount in millions
|Fin Year||Bought||Repaid||Total debt|
|31 March 2000||238,400 |
|31 March 2001||286,850|
|31 March 2006||574,570|
|31 March 2007||601,700|
|31 March 2008||646,550|
|31 March 2009||748,580 |
|31 March 2010|
|31 March 2012||1,350,600 |
- includes the province of Hyderabad
- includes revenues from non-ferrous mining and metallurgical industries
- includes stamp fees
- includes tax on trades
- includes stamp fees
- includes revenues from non-ferrous mining and metallurgical industries
- World Bank Supports India's Urban Development
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- Example include Tidelpark and ITP Chennai
- TICEL Park for Biotechnology
- [dead link]
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