Tamil Nadu has attracted investment proposals worth Rs 9.2 lakh crore for 1,637 projects as of June 2012, with a majority of them going into power and services sectors, according to a study released by the Associated Chamber of Commerce and Industry of India (Assocham). This accounts for around 6.5 per cent of the total investments made by both the government and private sectors in India as of June 2012.
A strategic paper titled ‘Achieving higher growth in Tamil Nadu,’ released by the Assocham on Wednesday, elaborates that, “By attracting about Rs 9.1 lakh crore out of the total investments worth over Rs 139.2 lakh crore made across the country, Tamil Nadu accounted for 6.5 per cent of the total investments made by both the government and private sectors in India as of June 2012.” The year-on-year growth of investments is about 15 per cent,
The state has accounted for around 8.5 per cent of total investments made by all the government sources across the country and about 5.2 per cent of the total investments made by all the private sources.
Around Rs 3.5 lakh crore, almost 38.5 per cent of the total investments, was in the power sector while the services, manufacturing and real estate sectors had 32.3 per cent, 17.5 per cent and 9.6 per cent share of the total investments proposed in the state.
Elaborating on the status of the projects, the study said that around 48 per cent of investment projects were under implementation, over 42 per cent were at the MoU stage and over nine per cent of projects had been stalled or remained without any update information.
“The state needs to see higher rate of completion of investment projects to live up to its image of a lucrative investment destination in India,” said Assocham president Rajkumar Dhoot.
Also Read
The gross state domestic product (GSDP) has grown from Rs 219 lakh crore to around Rs 428 lakh crore with a compounded annual growth rate (CAGR) of over 10 per cent between 2004-05 and 2011-12. The services sector contributed 65.8 per cent with 12 per cent CAGR to the GSDP, while the industrial sector accounted for 26.5 per cent with a seven per cent CAGR, agriculture and allied activities at 7.6 per cent with four per cent CAGR.
The manufacturing output and construction activities posted around 17 per cent of the GSDP and about nine per cent growth rate between 2004-05 and 2011-12.
Tamil Nadu has the highest share of the services sector to the GSDP, at 64.7 per cent, followed by Maharashtra (61.9 per cent), Andhra Pradesh (53.6 per cent) and Gujarat (46 per cent).
The apex industry body appealed to the government to focus on low cost renewable energy sources to overcome the power shortage faced by the state at present. It also urged the government to take policy measures to meet the challenge of falling shares of agriculture and industry sectors together with power shortage.
It further suggested that the Maritime Board should form joint ventures with private investors to develop the ports and SEZs in the port areas and that special purpose vehicles need to be formed to create road and rail connectivity with the hinterlands.
While the state has well-developed automobiles, chemicals and transport equipment industries, further development of water-intensive industries such as chemicals has to be discouraged in Tamil Nadu, it said.
It also suggested that state-level development finance institutes like the erstwhile state industrial development corporations be revived to boost the micro, small and medium enterprises sector, since the long-term financial needs of the segment is not met by the banks. The state should focus on conversion of sea water into potable water look at exploration of hydrocarbons, it added.