 "Tamil Nadu gets Rs 7 trillion in investments in first five months of 2024")
Last week, Google’s parent company Alphabet marked its entry into Tamil Nadu to manufacture Pixel smartphones and drones. This is part of a trend that has seen the southern state attract over Rs 7 trillion in investments and create more than 3 million jobs in just the first five months of 2024.
Major investors include Tesla rival VinFast, Tata Power, and Apple suppliers such as Foxconn, Tata Electronics, and Pegatron. The amount is in addition to a total investment of Rs 2.97 trillion the state has seen over the past two years, creating 415,282 new jobs.
Gujarat received investment proposals worth Rs 26.33 trillion during its investors’ meet this year. However, the advantage with Tamil Nadu is most of the investment announcements are confirmed and already running, say sources.Chennai, Hosur, and Coimbatore have emerged as the favourite destinations for investors. Government and industry experts attribute the rise in investments to the ease of doing business, single-window clearances, investor-friendly land policy, availability of skilled labour, and proximity to ports and key markets.
A large share of the new jobs is in the job-intensive electronics sector.
Tamil Nadu Industries Minister T R B Rajaa said the state had streamlined procedures for setting up businesses and obtaining necessary clearances, making it easier for investors to start operations.
He said the large pool of skilled professionals, especially in engineering, information technology, and manufacturing sectors, was supported by prestigious educational institutions. Around 170 clearances from 25 departments are facilitated through this single-window system.
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In electronics, the state is the leading exporter, with exports touching $9.56 billion in FY24, up 78 per cent from $5.37 billion in FY23, and much ahead of Karnataka and Uttar Pradesh.
Industry veterans, too, are upbeat about the rising global interest in the state.
“The state has not only focused on improving the ease of doing business but has also supported the ecosystem—be it the upgradation of skill sets or providing access to equitable growth through opportunities to women employees,” said R Dinesh, chairman of TVS Supply Chain Solutions.
Tamil Nadu offers incentive packages that balance investor benefits with the state’s interests, as well as payroll subsidies promoting diversity, equity, and inclusion in the workforce.
Subburathinam P, chief strategy officer, TeamLease Services, said the advantage with Tamil Nadu was that the majority of these job opportunities were coming in electronics, a job-intensive sector.
“In Sriperumbudur and Hosur itself, a couple of companies in the electronics sector may bring in more than 50,000 jobs. There are other sunrise areas like EVs, too, that are adding to the job scenario in the state.”
He said new areas like Tuticorin were fast evolving as an industrial belt, while traditional textile belts like Tiruppur were getting stronger with new industries, as an extension of Coimbatore.
Big bets
Google: In talks with Foxconn to make Pixel smartphones
Tata Power: To invest Rs 70,000 cr for 10 Gw solar and wind units over a period of 5-7 years
Tata Motors: To pump Rs 9,000 cr into new vehicle manufacturing unit in Ranipet
VinFast: Investing Rs 4,000 cr in integrated EV manufacturing unit at Thoothukudi
Pegatron: Plans a computing, communications, and consumer electronics manufacturing unit in Chengalpattu