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Tamil Nadu
Economic Infrastructure
Investment Incentives
Major Industries

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General Information

Tamil Nadu is a state at the southern tip of India. The bordering states and union territories are Pondicherry, Kerala, Karnataka and Andhra Pradesh. The island nation of Srilanka lies off the southeast coast.

Tamil Nadu has a long eastern coastline dotted with enchanting beaches with Bay of Bengal in the east. Marina in Chennai is one of the longest beaches in the world. Arabian sea and the states of Kerala and Karnataka form the boundary in the west. Western Ghats have sanctuaries such as Mudumalai wildlife and The Nilgiris, the Queen of Hills. The state is bounded in the north by the states of Karnataka and Andhra Pradesh. Pulicat lake is in the extreme north.

Tamil Nadu is one of the most industrialised states in India with a high Human Development Index (HDI). Chennai (formerly known as Madras), the capital city of Tamil Nadu, is the gateway of south India with an international airport, seaports and good rail and road network connectivity. Coimbatore, Madurai and Tiruchirappalli, Salem and Tirunelveli are some of the other major towns in the state. The state has large number of good educational institutions and is one of the leaders in the field of Science and Technology and particularly in Information Technology.

Tamil Nadu is one of the well developed states in terms of industrial development and in the post liberalization era, the state has emerged as one of the front-runners by attracting a large number of domestic and foreign investments. It is one of the major recipients of outside investments, particularly of Foreign direct Investment (FDI). Several multi-nationals such a Ford Motors of USA, Hyundai of Korea, St. Gobain of France, Nokia of Finland, etc. have established their units in Tamil Nadu. Motorola of USA has signed an MOU with the State Government in June 2006 to establish a mobile phone and networking equipment manufacturing facility with an investment of Rs. 130 crore that would employ 2600 people.

The Industrial Policy of the state is now focused on stimulating industrial development and attracting FDI. It is aimed at consolidation of the existing industrial base, facilitating new manufacturing capacity and is designed to meet challenges of globalisation and demand for new areas of development.

The State has launched an initiative to engender private public partnerships (PPP) by creating a positive business and regulatory environment, enabling flow of substantial domestic and foreign capital for infrastructure building, especially in Special Economic Zones, industrial townships, satellite towns, etc.

Fact File

Geographical Area 1.30(Lakh Sq km)
Capital Chennai
Population (2001 Census) 624.06 (lakhs)
Gross state Domestic product (GSDP) at current prices in 2006-2007 Rs 24626587 lakhs
Gross state Domestic product (GSDP) at constant price (1993-94) in 2006-2007 Rs 19340393 lakhs
Per Capita Income at current prices (2004-2005) Rs 37635 lakhs
Percentage of State Population to All India Population 6.07%
Total Investments (as on Jan 2006) US$ 35. 9329
Literacy Rate (2001 Census)
Principal languages Tamil, English

Source: CSO Estimates

Advantage Tamil Nadu

  • Fastest growing state economy in India.
  • One of the top three recipients of Foreign Direct Investment(FDI).
  • Matured manufacturing sector.
  • Fast emerging as the IT happening destination.
  • Stable political climate.
  • Pro-active and investor friendly government with transparent decision-making approach.
  • Peacful living conditions and low crime rate.
  • People’s adaptability to change.
  • Most urbanized state.
  • Ranks no.1 in availability of skilled manpower in India.
  • Most sought after destination by MNCs.
  • Excels in terms of human resource, infrastructure and labour relations.
  • Low cost of man power.
  • Lower cost of living when compared to other locations.
  • Largest tour-out of engineers technicians (1,30,000 from a network of 252 Engineering Colleges & 210 Polytechnics).
  • Well qualified, skilled, disciplined, productivity oriented and english speaking work-force.
    High literacy rate of 73.5%.
  • Modern ports (with container handling facilities) and airports with direct links to Europe and East asia.
  • Tamilnadu has 3 major Ports: Chennai Ennore and Tuticorin with twin port advantage at Chennai and Ennore apart from 14 minor Ports.
  • 270 passenger flight and 28 cargo flights per week at Chennai Airport-the Largest in South India.
  • A total road network of 150,000 kms.
  • The only Power surplus state in India.
  • World-class health care fecilities-Chennai is the health care capital of india
  • Availablity of world-class bandwidth connectivity and telecom infrastructure for high speed large volume data transfer.
  • Well-developed network of industrial parks offering plug and play infrastructural facilities.
  • Fastest growing retail market in India
  • American International school and 3 other International Schools for experts

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