The Confederation of Indian Industry (CII) has recommended a six-pronged strategy to the Tamil Nadu government to place the state on a higher growth path of eight per cent for state gross domestic product (SDP) and 10 per cent industrial growth.
In its pre-budget memorandum presentation, CII has identified six key areas as primary growth drivers - IT industry & biotech, infrastructure, agriculture, development of southern districts, tourism and reduction in CST to one per cent.
The state, according to the memorandum, should aim at 20 per cent share in IT-enabled services, which would translate into $ 4.4 billion by next plan. In its suggestion to improve the quality and cost of infrastructure services, the CII has urged the state to halve the cost of power per kwh from the current level of Rs.4.20.
It has also recommended bringing down the transmission and distribution losses in the power sector to 12 per cent in five years. The memorandum also suggests that the state look at a five to six per cent growth in the agriculture sector during the next five year plan.
The average tax burden in Tamil Nadu on tourist works out to 30 to 40 per cent. Rationalisation of the tax in this sector would be a pre-requisite to make it a growth driver for the state, CII said.
