Tamil Nadu has witnessed a 20.3 per cent growth in investments in the first three months of 2010-11 to Rs 5.84 lakh crore. Electricity, services and manufacturing are the top investment destinations in the state, while irrigation sector attracted very low investment.
Of these, 47.7 percent investments were actually been implemented, according to Associated Chambers of Commerce and Industry of India (Assocham).
Assocham's secretary general D S Rawat said, “Undeterred by the recent economic slowdown, Tamil Nadu state continues to remain a prime investment destination for both foreign as well as domestic investors.”
The state, with its total live investment projects worth Rs 70.3 lakh crore, has emerged as a top investment destination.
Rawat said the state needs to replicate its services sector performance in industry and agriculture as well, in order to fulfill its balanced growth objective.
Given its pro-active and dynamic policy environment, the level of infrastructure development in the state coupled with its abundant natural resources, it would not take much time in realizing this objective,” he said.
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Ravindra Sannareddy of Assocham's southern regional council said that the state's economy recorded a compounded annual growth rate (CAGR) of seven percent during the eight years to March 2009.
The services sector, with a share of 62.6 percent, reported 9.1 percent growth. However, the industrial sector of the state (with 6.3 percent CAGR) and the agriculture sector (with mere 0.2 percent) have mainly pulled down the aggregate performance of the economy.