Tamil Nadu: a high ranking State of India

Tamil Nadu is one of the high ranking States in the country in terms of economic advancement and industrial development. It is, in fact, the third largest contributor to India's GDP Its diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. The present government under the dynamic leadership of Chief Minister Selvi J.Jayalalithaa has been taking all efforts to accelerate the tempo of economic growth and industrial development of the State and to ensure more opportunities for productive employment with higher earnings to all, thereby paving the way for the eradication of poverty, hunger, malnutrition and disease. In 1991 to 1996 and again in 2001 to 2006, under the dynamic leadership of Chief Minister Selvi .J. Jayalalithaa, Tamil Nadu has effectively responded to India’s call for speedier economic growth in the face of global competition.  In 2005-06,  Tamil  Nadu  economy  clocked  13.95  percent  overall growth  rate  and  the manufacturing sector had registered 15.10 percent  growth rate. However, in subsequent years, this growth momentum was not sustained. For instance, in 2008-09, the State Gross domestic Product (GSDP) of Tamil Nadu grew by meager 4.2 percent and the manufacturing sector recorded a negative growth rate of (-)1.31 percent. Available evidences show that industrial production plummeted during the entire period of 2006-11.   Now, again under the visionary leadership of Chief Minister of Tamil Nadu, the State is marching ahead in different sectors, especially in the manufacturing sectors.  In March 2012, the State Government had launched the Tamil Nadu Vision, 2023 wherein the State has unveiled the dream of   the Chief Minister Selvi J.Jayalalithaa to make Tamil Nadu India’s most prosperous and progressive State with no poverty, and where its people enjoy all the basic needs and essential services of a modern society and live harmoniously.  Soon after the release of the Vision 2023 document, the Budget for the year 2012-13 was presented, which reiterated the steps to be taken to achieve the goals. It is of particular interest to note that as a first step the budget allocated Rs.1,000 crore for the Tamil Nadu Infrastructure Development Fund in the Budget Estimates for 2012-2013. Moreover, the government undertook serious efforts to attract investment in the manufacturing sector. A number of leading manufacturing companies, both local and foreign, came forward to set up manufacturing units in Tamil Nadu and many memoranda of understanding have been executed by the government of Tamil Nadu. Altogether 17 Memoranda of Understanding were signed in the current financial year with domestic and foreign investors, for an investment totaling Rs.26,625 crore, which will generate direct and indirect employment for over 1.45 lakh persons. Many more industries, including many foreign companies, have indicated their intention to invest in Tamil Nadu in the coming years.