INDIAN STATE : TAMIL NADU

Major Industries

Textile Industry

The Textile Industry of TamilNadu has the distinction of being the forerunner to the industrial development of the State. The textile industry plays a significant role in the economy of the State and the export market of this industry is a source for earning foreign exchange. Various sectors of this industry, viz. Handloom, Powerloom, Spinning, Processing, Knitwear and Garment production serve as a major employment provider to the qualified as well as ordinary public.

The handloom sector of Tamilnadu is of heritage value and the history of excellent craftsmanship of handloom weaving in the State dates back by thousands of years. At present, there are 34.86 lakh handlooms in India, of which 4.13 lakh handlooms are located in the State providing employment to 6.08 lakh weavers. The average annual sales of handloom cloth by the State is around Rs.1,800 crore and this include the sales through export worth around Rs.875 crore.

The knitwear and woven garment sector is fast growing and the vital sector in the textile industry with an excellent export market. There are around 4000 knitwear and woven garment production units in the State providing employment to around 5 lakh persons.

Leather Industry

The state has 70 per cent of the tanning capacity in India. Tamil Nadu is making a dominant presence in the leather and leather-based industries. Government has set up Industrial estates and common effluent treatment plants to provide possible infrastructure support and capital subsidies.

Agro-based industries

Tamil Nadu posses ideal climatic conditions for a strong agro based food industry. It also provides favorable climatic conditions for the cultivation of a variety of fruits and vegetables in the Madurai-Dindigul belt. Tamil Nadu has also proved itself as a world leader in agricultural production with a high yield per hectare of sugarcane, rice and groundnut. with the area around Coimbatore (identified as an intensive floriculture zone), Dharmapuri and the Nilgiris being earmarked as ideal locations for the cultivation of flowers such as rose and chrysanthemum, the floriculture industry is likely to get a boost. Its long coastline (1000 Kms) offers opportunities for marine products based industry.

Chemicals and Petrochemicals

The chemical industry is a prominent industry in the state of Tamil Nadu mainly situated in Manali (situated on the outskirts of Chennai) Cuddalore, Panangudi (Nagapattinam) and Tuticorin.

Mineral-based industries

The mineral wealth of the state comprises granite, limestone and lignite. There are 12 major cement plants functioning in the state. The major players are Tamil Nadu Cements (TANCEM), Dalmia Cements, Madras Cements, India Cements, Grasim Industries, Associated Cement Companies and Chettinad Cements.

Automobile ancillaries

Chennai, the "Detroit of India" is emerging as a major export hub for cars in South East Asia. Major automobile manufacturers like Ford, Hyundai, HM-Mitsubishi, Ashok Leyland, TAFE, etc.have their manufacturing base in Tamil Nadu. The main thrust to the auto industry has come because of skilled manpower coupled with the states strong engineering industry background. Adding to this the ports of Tamil Nadu at Chennai and Tuticorin help facilitate the export and import of the desired materials for the auto industry thereby reducing the cost of transport.

Information Technology (IT) & Information Technology Enabled Services (ITES)

Tamil Nadu continues to register remarkable progress in the Information Technology sector. The Software export from the State, which was Rs.20,700 Crores in 2006-2007 is expected to cross Rs.28,000 Crores in 2007-2008.

Tamil Nadu is emerging as the preferred destination for IT Software and Hardware Companies. The number of IT-ITES SEZs in the State is an indication of this. So far, 37 IT-ITES SEZs spread over an extent of 1226.32 hectares have been given formal approval by the Government of India. Out of this, 19 have been notified and have commenced operation.
Apart from this, 1 Multi Service SEZ covering an extent of 121.41 hectares and 2 Multi Product SEZs covering an extent of 2192.44 hectares have also been given formal approval in Tamil Nadu. In addition, 6 Electronic Hardware, Software and Related Service SEZs covering an extent of 464.45 hectares have also got formal approval. Thus, Tamil Nadu is ideally placed to attract investments in the IT - ITES and Electronic Hardware manufacturing sector.

All the top IT companies of India have been expanding their activities in Tamil Nadu. Tata Consultancy Services is setting up a new 70 acre campus at Siruseri. This is nearing completion. Wipro has already commenced operations in their newly established 80 acre campus at Sholinganallur and is developing another 90 acre campus in Mahindra World City. HCL is expecting to complete its latest campus at Sholinganallur over an extent of 50 acres this year. Satyam Computer Services is also building its additional campus over an extent of 50 acres at Sholinganallur. Cognizant Technology Solutions has already commenced work on a new 25 acre SEZ at Siruseri and is expected to start work at Sholinganallur soon.

Many more IT Parks are being put up not only at Chennai but at Coimbatore, Madurai, Tirunelveli and other cities. Thus, the IT-ITES sector continues to show good growth in Tamil Nadu. Large international Hardware manufacturers like NOKIA, Foxcon,Flextronics and Motorola have already located their facilities in Tamil Nadu. Dell Computers, Samsung, ASPOCOMP, Spelmech Semi-conductors, Salcomp, Perlos, Jabil, Wintek and many more electronic hardware.

Tourism

The tourism sector in Tamil Nadu has great potential to create employment and thus contribute meaningfully to economic development. Tamil Nadu is known for various tourist attractions, allures a large number of tourists. The colossal temple towers, palm-fringed beaches, cool and salubrious hill destinations, man-made marvels etc. are the primary attractions of this state. Besides, the culture, handicrafts, eco-tourism, health tourism, village tourism, etc., make this state as a peaceful domain for the visitors to sojourn in Tamil Nadu. Attractive handlooms and handicrafts in various hues and colours speak about their own intricate workmanship. Health tourism has opened up new vistas as there are numerous high -end medical care facilities are available in the state, which are cost-effective.

Tamil Nadu is being promoted as an “enchanting” destination for holidaying in Southern India through massive publicity and marketing and provision of infrastructural facilities and basic amenities at potential tourist spots. Private sector participation is being encouraged in development of tourism. A three pronged approach is being adopted to promote tourism in the State: (i) major publicity campaigns, (ii) creation of infrastructure at tourist spots and (iii) offering attractive packages.

Tamil Nadu Tourism Development Corporation (TTDC) has achieved substantial growth during
the year 2006-2007 with an estimated turn over of Rs.4970.00 lakhs compared to the turnover of Rs.4342.00 lakhs achieved during the year 2005- 2006. This represents a growth of 14 percent over last year. The gross profit for the year 2006-2007 is estimated as Rs.705.00 lakhs compared to the gross profit of Rs.589.70 lakhs achieved during the year 2005-2006.

Major initiatives taken by the Government to boost Tourism industry in Tamil Nadu:

• Tourism has been declared as an Industry in Tami Nadu. Ten percent capital subsidies up to Rs.10 lakhs are given to tourism projects in TamilNadu with a capital investment not exceeding one crore rupees. Besides 15 percent of capital cost up to Rs.5 lakhs as subsidy for the purchase of Generators.
• To encourage private investment in tourism projects, the Department of Tourism co-ordinates with different departments for early clearance of the projects.
• Preparing plans to improve infrastructure facilities in Tourist centres obtaining central assistance through the State Government, and securing the active participation of the local public by providing better economic avenues are the priorities of this department.
• The Tamil Nadu Tourism Development Corporation is operating 36 hotels and is providing maximum comforts to the tourists at low tariff.
• The Tamil Nadu Tourism Development Corporation is providing well-planned travel circuit plan with care and comfort to the tourists coming from other States and abroad.
• The corporation is maintaining youth hostels, children parks, boathouses, and telescope houses for the entertainments of the tourists.
• Every year, tourist and Industrial Fair are conducted at Island grounds at Chennai for information dissemination on the achievements of the government and to promote tourism.
• The Director of Tourism, Chennai recommends for the sanction of FL 3 permits to private tourist hotels and also recommends projects of the private tourism promoters to obtain loan from the financial institutions.
• Approvals of shops and classification of hotels for awarding Star Category are being certified by the Department.
• Sound and light programme is conducted at Thirumalai Naickar Mahal. Efforts are being taken to establish similar Programmes at Thanjavar Big Temple and at Fort Saint George, Chennai.