Port Wings News Network:
Just in four years, Tamil Nadu has attracted new investment proposals of over four lakh crores helping the state generate over 50,000 new direct employment opportunities, according to the study conducted by the MSME Export Promotion Council along with the Confederation of Organic Food Producers & Marketing Agencies.
Releasing the study on Investment: Growth & Development in Tamil Nadu” here on 22 March, the chairman of the MSME EPC Dr D S Rawat said, the state government’s initiatives to boost new investment have successfully attracted the domestic and foreign investors and a significant number of projects are in the manufacturing sector.
In 2021-22, the state received new investment proposals of Rs.85831.49 crore and during the pandemic year 2020-21 worth Rs.85556.98 cr. While the new investment in most of the states had slowed down considerably, Tamil Nadu continued to be investors’ favored destination, added Dr Rawat.
In 2021-22, the completed projects were worth Rs.24849.99 cr, the state government revived the projects of Rs.1647.10 cr. As per the data available with the Centre for Monitoring of Indian Economy (CMIE) the total investment projects outstanding were of Rs.1421792.38 cr and under implementation of Rs.754634.33 cr.
During the FY 2019-20, the new investment projects were of Rs.81406.35 cr, completed projects worth Rs.34978.15 cr, revived the projects of Rs.2155.78 cr, and the total investment projects outstanding were of Rs.1238180.20 cr and under implementation Rs.634180.05cr.
The study attributed continuous flow of investments, both domestic and foreign, due to state’s advanced infrastructure, mature industrial ecosystem, and logistics capabilities. The state government has already taken host of policy initiatives to become the leading investment destination.
The study found that a number of micro and ancillaries are coming up including in rural areas. Reportedly, there are over 50 lac MSMEs, 3rd behind the Uttar Pradesh and West Bengal. In terms of nature of ownership, proprietorship 91.13 per cent, partnership 0.44%, companies 0.10%, self help groups 0.26% and others 6.11% and more than 95% of MSMEs employ 5 or less workers. It was observed that overwhelming majority of MSMEs are self financed and initial investments come from their own sources of funds or through informal sources.
To strengthen the MSME sector, state government has taken several initiatives including handholding and financial support. The MSMEs are major contributors to value creation, generating between 50 to 60% of value addition on an average.
The IT & software industry has opened up tremendous opportunities for the promotion of software exports and services in the state with strong industrial base and infrastructure, world class connectivity and healthcare, abundant power supply, trained human resources.
More than 60% of the state is urbanized. The services contribute to 55% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 11% and the government happens to be a major investor with 52% of total investments, followed by Indian investors at 29.9% and foreign private investors at 14.9%.