'The Dravidian model is about inclusivity, diversity, and equitable growth'

Tamil Nadu is in a transition phase from being a manufacturing powerhouse to a knowledge economy. The state minister for industries, investment promotion, and commerce, T R B Rajaa, says it is taking significant strides in research and development (R&D) and is moving towards becoming a knowledge economy. Rajaa discusses the knowledge economy, the Dravidian model, and the manufacturing sector at the Tamil Nadu Round Table 2023 summit with A K Bhattacharya, editorial director of Business Standard. Edited excerpts:
 

We keep hearing about the Dravidian model of industrial development. What is this model, how does it make a difference, and how can it be inclusive?
 

Things are clear when you step into Tamil Nadu and see growth in every sector, in every corner of the state. The basis of the Dravidian model is education. You give people the right to question and determine what sort of questions should be asked. Once that is given to them, they start asking for rights from the elected representatives, and that is when the state grows in a holistic way.
 

When you look at other states and Tamil Nadu today, we are the most urbanised — because we have taken growth to every nook and corner of Tamil Nadu. The Dravidian model is all about inclusivity, diversity, and equitable growth — basically distributed growth. We would like to increase that distribution now. We have done a very good job. Our competition is not with other states in India but with Scandinavian countries, on all our markers.  
 

We are clear that the growth of India is crucial for the growth of Tamil Nadu. Instead of two engines moving in the country, I would rather say every state should be an engine and the Centre powering it from the top. The only thing is everyone must recognise the fact that Tamil Nadu has its own inherent strengths, and so does each and every state. Look at the inherent strengths of each state and utilise them. Let them do what they are doing best. We believe that this country needs to be even more strongly united and more federal in nature.
 

You referred to engines of growth. What do you mean by that?
 

The relationship between the Centre and the state does have an effect on growth. We are different and better. We only expect others to look at us in a better way, look at our strengths, and enable us to do better.
 

What role does a stable society play for the sustainable growth of industry?
 

The Dravidian model has always been clear about that. That is why when you look at women’s workforce participation, around 43 per cent of all the women working in India are from Tamil Nadu. This is unmatched by any other state. It has taken decades for us to reach here. We have given them what others would call freebies. They are enablers of economic growth, and that is what the Dravidian model identifies. We gave them that and brought them out of home, and now they are competing with developed countries. You look at Tamil Nadu and how it has grown over the years. Certain practices were clear about the inclusion of various segments of people. For example, if you look at industries, you see distributed growth between religions also. A very diverse, likeminded society is crucial for industrial growth.
 

How do you think Tamil Nadu is making a transition from being a manufacturing powerhouse to a knowledge economy?
 

We want everybody to grow together. If some other state is strong on some other subject, we would definitely want to learn and bring that from it. We are a manufacturing powerhouse with more than 40,000 factories and counting. No other state comes anywhere close, and the closest competition is around 28,000. That said, manufacturing and advanced manufacturing are something we are really good at. Going ahead with advanced manufacturing and industry 4.0, what we need is a talent pool again. When we have advanced talent, they would rather have research also in the pool. We want to bring R&D facilities here and make sure that they get the best of labs and testing facilities, to retain them here in Tamil Nadu and do that R&D here. If you look at last year’s numbers, Tamil Nadu continues to register the highest number of patents in India. Research is happening here. As industry grows, the MSME (micro, small, and medium enterprise) sector throws up the highest number of innovations anywhere in the world. If you look deep, it is happening in the MSME sector, and StartUp TN is also working in that core area. Going towards a knowledge economy, R&D hubs are important and I think we are taking big strides on that.

We are coming up with Knowledge City, which will be very close to Chennai, and all the top universities of the world will have their offices right here in Chennai. This is going to be a big step and probably by the end of next year, we will see some very big names coming to Chennai via Knowledge City.
 

It’s often said education, health, and water are the three pillars that make the knowledge economy. What is your take on the health sector?
 

In health, we are the leader. Health tourism is something that we have led for the longest time. We have people coming from around the world to Chennai. The number of doctors we have is staggering.
 

Do you face competition from other states in terms of transitioning to a knowledge economy, and what kind of expectations are there from industry?
 

I don’t see any challenge from other states. If there is a challenge, it is from within. Industry’s involvement in education is something that I personally think is the very key for education to reach its peak. Unless you coordinate with industry, this education system is not going to break out of its shackles. I think industry can come and partner with Knowledge City, and something like that will happen soon.
 

What kind of help do you require from the Centre in making the transition a bit faster?
 

We want them to make education a state subject. Just let us do what we do best. We are number one in electronics exports, reaching around $5.37 billion last year, and we are pushing for $8 billion this year. That said, what we need is not just a PLI (production-linked incentive) but something better. We are not a desperate state, and we have the luxury of choosing our investment. We will ensure that the incentives we provide are selective in creating the kind of jobs that align with our vision. If it is around Chennai, we will probably focus on bringing in R&D and global capability centres. If it is in the southern region, we will emphasise manufacturing more. We know what we need. Every state needs to grow; if our strength is electronics, let us focus on that.