Industrial Policy of Tamil Nadu

Objectives

The Government of Tamil Nadu has a liberal industrial policy. Coinciding with the new economic and industrial policy of the Government of India, the state Government too has come up with its own policy, which outlines its main objectives and the strategies to achieve them. A New National Industrial Policy and a New Trade Policy have been announced. It is necessary to take advantage of the new spirit introduced and to create a congenial atmosphere for stimulating the rapid growth of the State's economy. A new industrial policy for Tamil Nadu is the logical outcome of these newly emerging economic factors.

Indian Industry grew by an annual average of 8.5 percent in the Seventh Plan period. In Tamil Nadu this growth rate was 5.7 percent. The share of the secondary sector in State Domestic Product in Tamil Nadu in the Eighties had remained static at 33 per cent, similar was the case with the per capita income which remained static at the national average. Unemployment had risen over the years and the number of educated unemployed on the live rolls of the Employment Exchanges had increased from 5.58 lakhs in 1980 to 18.01 lakhs in 1991.

Central investment in Tamil Nadu had declined from 10 per cent in 1969 to 5.21 percent in 1990-9. The lack of new mother industries has been a cause of serious concern.

The full utilization of surface irrigation potential and the rapid exploitation of ground water resources have imposed constraints on accelerated development of agricultural production.

Against this background, Tamil Nadu has to provide for rapid industrial development. The Government of Tamil Nadu stands committed to ensuring that Tamil Nadu forges ahead among the industrialized States in India.

Tamil Nadu has the following advantages for rapid industrial growth.

• A highly trained labour force with a good record of industrial relations.
• A huge pool of managerial talent.
• A strong and well diversified manufacturing base.
• A good functioning infrastructure including a well developed road transportation network.
• An extensive rail network.
• Efficient ports at Madras and Tuticorin.
• Well developed social infrastructure.
• Vast deposits of lignite which can act as the prime catalyst for new growth.
• A comfortable energy situation and a forecast of continued availability of reliable power supply.
• Peaceful living conditions in a harmonious society.
• A substantial export base.

Major Industries

The important sectors of industries in which Tamil Nadu has traditional strength are as below :

• Established Industries
• Emerging Industries
• Mineral based industries
• Electronics
• Engineering
• Software
• Leather
• Consumer durables
• Pharmaceuticals
• Biotech Products
• Cotton textiles & Hosiery
• Food Processing
• Ready-made garment industries
• Rubber and plastic products
• Wood Products
• Tourism
• Agrobased industries
• Hotels
• Chemical based industries
• Financial Services

Thrust Areas for further industrial Growth

• Leather
• Textiles and Hosieries
• Electronics and software
• Auto components
• Drugs and Pharmaceuticals
• Petro chemicals including downstream projects in Manali and Thanjavur
• Industrial Alcohol based Organic Chemicals
• Agro based industries and food processing industries
• Salt and marine based industries
• Gems and Jewellery
• Engineering goods
• Sea Food
• Export Oriented Units