Several industries are booming in Tamil Nadu. Tamil Nadu is ranked thirst industrial state in India followed by Maharashtra and Gujarat. Textile, sugar, paper, leather, cement, electrical equipment, automobiles, information technology (IT), tourism and many more industries have covered the Tamil Nadu State.
Tamil Nadu Industrial Development Corporation (TIDCO) encourages large and medium scale industries in Tamil Nadu through new joint venture projects in the manufacturing sector. TIDCO has shifted more towards infrastructure projects with the liberalization of industrial licensing and controls. It boosts Special Industrial Areas (SIA) and Agricultural Export zones (AEZ) through joint ventures.
New industrial policy in the state
While the State Government focuses on improving the State’s competitiveness in the new growth sectors, it is also committed to revitalizing traditional industrial sectors, with the stated goal of making Tamil Nadu a regional gateway to Asia and a top-ranking exporter of manufactured goods. The state’s policy has emphasized facilitating and incentivizing large mother industries to locate in Tamil Nadu. The new industrial policy emphasizes the balanced development of traditional and modern industries.
Promotion of SEZs for footwear and leather processing, agro-processing and export of agro products, and establishment of co-generation plants and ethanol units in sugar mills are some of the initiatives started in the new industrial policy in the traditional industrial sector. High priority is for the promotion of industries in high-tech areas like semiconductors, electronic hardware and nanotechnology.
Manufacturing and engineering industry
It is one of the vibrant sectors in Tamil Nadu. It contributes greatly to the industrial output. It covers the manufacturing of machinery, transport parts, basic metal & alloy industries and metal products.
The automobile industry contributes 8% of Tamil Nadu’s GDP. This industry accounts for approximately 21% of passenger cars and 33% of commercial vehicles produced in India. Chennai is the home of 30% of India’s automobiles and 35% of its automotive components. Because of its industrial dominance, Chennai has earned the moniker “Detroit of Southern Asia.”
The growth of the leather industry is because of the large tannery base established over the last two centuries. The annual turnover of the industrial sector including tanneries, shoe factories, garment and leather goods-producing units is Rs.4,500 crores, of which Rs.2,750 crores is the income from export. According to the Tamil Nadu New Industrial Policy 2003, the state has 70% of leather tanning capacity in India and 38% of leather footwear and components. The exports from Tamil Nadu are valued at about US $ 762 million, which accounts for 42 % of Indian leather exports.
Tamil Nadu is India’s second-largest paper producer, trailing only Andhra Pradesh.
Paper mills can find in Pukkathurai in the Kancheepuram district, Bhavanisagar, Pallipalyam, Pugalur, Paramathi, Vellore, Coimbatore, Udumaliapettai, Thoppampatti, Nillakkottai, and Cheranmadevi.
Tamil Nadu’s food and beverage industry are thriving. Mango pulp is manufactured and exported. Instant food and cooking ingredients are manufactured and marketed both locally and internationally. Snacks and biscuits are widely distributed. Tamil Nadu’s long coastline provides opportunities for marine-based industries.
Tamil Nadu accounts for roughly 10% of total sugar production in India. The cooperative sector employs the vast majority of sugar units in the state. Tamil Nadu currently has 42 sugar mills, with 16 in the cooperative sector, 3 in the public sector, and 23 in the private sector. Sugar mills are concentrated in the districts of Villupuram, Cuddalore, Vellore, Erode, Coimbatore, Thiruvannamalai, Thiruchirappalli, Thanjavur, and Madurai.
Tamil Nadu ranks fourth in cement production in the country. It accounts for 10% of total cement production in the country. Tamil Nadu Cements Corporation Limited (TANCEM) is wholly owned by the Government of Tamil Nadu and produces Ordinary Portland Cement (OPC) and Super Star Cement that exceeds Indian standards. Sankari, Madukarai, Ariyalur, Dalmiapuram, Manamadurai, Thulukapatti, Allankulam, Sankarnagar, and Thazhaiyuthu are major cement industry centres.
The majority of Tamil Nadu’s chemical industries have concentrated in and around Chennai (Manali), Cuddalore, Panangudi (Nagapattinam), and Thuthukudi.
SPIC (Southern Petrochemical Industries Corporation Ltd.) and Manali Petrochemicals Ltd. are two notable chemical industries in Tamil Nadu. Pfizer Pharmaceuticals and Dow Chemicals are two major chemical companies with research and development facilities in Chennai.
Electronics is an emerging industry in Tamil Nadu. Many prominent global telecommunications like Nokia, Flextronics, Motorola, Sony-Ericsson, Foxconn, Samsung, Cisco, Moser Baer, and Dell have picked Chennai as their South Asian manufacturing hub.
It is the major industry in Tamil Nadu. It provides large-scale employment and prominent source of foreign exchange.
Tamil Nadu has always been a welcoming state to investors. Proactive government policies and the state’s peaceful environment attract investors from all over the world. Tamil Nadu is the preferred destination for all multinational IT companies. Few examples of IT companies in Tamil Nadu include Amazon, Aspire systems, Bhavan Cybertech, Consim, CSS Corp, Cognizant, HCL, Ford, Zoho and others