Tamil Nadu Trade and Commarce

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Tamil Nadu Trade and Commarce

Gross state domestic product of Tamilnadu grow at a CAGR of 11.68% between 2004-5 and 2015 -16, riching US dollar 175.33 billion in 2015-16. Per capita gsdp of Tamilnadu is US dollar 2430.54( at current prices) is nearly 1.75 times higher than the national average of US dollar 1389.6.Tamil Nadu Trade and Commarce

According to DIPP, the cumulative FDI inflows in the state during April 2002 to March 2016 amounted to US Dollar 21.54 billion with 18.6% growth between 2014/15 to 2015/16. During the financial year 2015 -16 the state ranked third after Delhi and Maharashtra in terms of actual FDI inflow in the country . The total FDI inflow in the state stood at US dollar 4.52 bilion during this period. The state government announced the implementation of 62 MoUs worth US dollar 9.4 bilion, out of 98 MoUs, which was signed during global investment meet in 2015.

Tamil Nadu has a diversified manufacturing sector and features among the leading state in several Industries like automobile and components, engineering, Pharma,  garments and textile products, leather products, Chemicals and pesticides etc.In  IT the state  rank first among the states in terms of number of factories and industrial workers. Due to its achievements as an auto production hub, Chennai has been dubbed as the Detroit of India. The state’s proximity with East Asian countries, Chennai is also endeavoring to become an International Financial hub.

The service sector—- IT exports from Tamil Nadu has increased  from US dollar 7.1 billion in 2007-8 to US dollar 13.4 billion in 2014- 15 registering an compound annual growth rate of 9.5% . Chennai is a key financial centre in South India with strong presence of major Indian financial institution and foreign banks. The World bankhas its back office in Chennai.

Tamilnadu also has a thriving tourism sector and ranked third in India in terms of number of domestic tourist arrivals and second in foreign tourist arrivals.

Robust infrastructure:-

Tamil Nadu has well developed infrastructure with an excellent road and rail networks, three Major ports, 23 minor ports and 7 airports across the street providing excellent connectivity. The state also plans to develop two industrial corridors Chennai -Bengaluru and Madurai -Tuticorin. In line with vision 2023, it aims to step up infrastructure investment from 4-5% of GSDP TO around 11.5% by 2019.

Strong human resource pool:-

Tamil Nadu has 59 universities, 40 medical colleges, 517 engineering colleges,  447 polytechnic and 20 dental colleges  which provide skilled human resource in all sphere of society. Further, the state has a highly qualified skilled, disciplined, productivity oriented and English speaking human resource pool. Vision 2023:—- the state targets attracting investment to the tune of your dollar 248.84 billion between 2012 to 2023; Mostly in energy and transportation sector.

Agricultural production and trade:-

Tamil Nadu is one of leading producer of Banana ,flowers,coconut, groundnut, coffee, tea and sugar cane. Rice production in the state increased from 5398.2 thousand tonnes during 2014 -15 to 5716 thousand tonnes during 2015-16 any total food grain production was 8.92 million tons in 2015/16. In 2015 India and Israel signed an agreement to employee the third phase of Indo – Israel agriculture project till 2018 in Tamilnadu.

Export of  Tamilnadu:-

Tamilnadu is major exporter of variety of goods such as automobiles and auto components, engineering goods, text tile and Granite, handicraft, yam,spices, coffee, tea and Leather products. Tirupur and Erode are the country’s largest exporter of knitwear. The States export total US dollar 27.9 billion in 2014 -15. Application software accounts for a majority share in the software export from Tamilnadu. Over the last 3 years Software export from Tamilnadu have grown phenomenally. IT exports from Tamilnadu;  increased from US dollar 7.1 billion in 2011-12 to 13.4 billion in 2014 -15 at a compound annual growth rate of 9.5%. According to industrial policy released in 2014 the state plants to double the export  fromthe current level by 2018.

Exports of floricultural products from the estate were recorded to US dollar 13.86 million during 2015/16 whereas the value exports of fruits and vegetables seeds with US dollar 1.79 million during the same period. Onion exports from the state increased from US dollar 40.13 million in 2014 15 to US dollar 48.66 million during 2015-16. Tamilnadu industrial guidance and export promotion Bureau has been set up with the objective of attracting major investment proposals into Tamil Nadu.

Key industries in Tamilnadu:-

  1. Textile:-

Tamilnadu is known as the yarn bowl of the country. Tamil Nadu is the largest producer of cotton yarn accounting for 41% of India’s production. Coimbatore is called the Manchester of South India. In the 2016-17 in intream budget, allocation of US dollar 75.64 million was made by the government for the scheme of providing sarees and dhoti to People. It was mainly focused to improve trade and Employment status in the sector. For expanding the Global presence of their products Tamil Nadu Handicrafts Development Corporation and Complex has introduced online marketing. The Khadi and village industries Board and sarvodaysangrams to be provided with a rebate subsidy of US dollar 2.82 million.

  1. Automotive industry:-

Chennai is called as the Detroit of India for its large scale auto products and infrastructure. In 2014-15 state had automobile manufacturing capacity of 3.55 million units. The Government of Tamilnadu is planning to increase the automobile manufacturing capacity to 5.8 million units by 2020. During financial year 2014 Tamil Nadu had 21.20% share in all automobile exports from India. The state accounted for 15.8% share in domestic production and 14.9% in domestic sales of the automobile sector in the country. Tamilnadu has 28% share it in the Indian automotive finance industry, 19% truck segment and 18% is in the Passenger car and two wheeler segment. The capacity to produce 1.35 million cars and 0.39 million commercial vehicles annually. The presence of strong industries in Tamilnadu is because of presence of skilled manpower with strong engineering capabilities. Tamil Nadu is one of the largest tyre manufacturer in India and the state accounts for 40% share in the country’s tyre production in 2015-16.

  1. Engineering:-

A robust engineering industry exist in the state involving product products ranging from automobile, bicycles, castings, textile machines, electrical and non -electrical machinery, pumps and transportation equipment, engineering ancillary Industries etc. During 2014-15 state rent second in the production of general purpose and special purpose machinery accounted for 18% and 11% share in India’s total output of general purpose and special purpose machinery respectively. Exports of engineering production from Tamil Nadu how increased from US dollar 4.7 million in 2009 -10 to US dollar 5.3 billions in 2014 -15. Coimbatore is a major production hub of textile machinery in India and accounts for 21% share in India’s manufacture of castings. Coimbatore also accounted for 60% share in the overall production of agriculture and domestic pumps in the country during the same period. In budget 2016-17 the state government has given approval for setting up an Aerospace park in about 250 acres in SIPCOT industrial Park. The park will provide  service in the domain of aerospace engineering, production and maintenance of aerospace components, repair and overhauling facilities for avionics etc.

  1. IT and ITeS:-

Tamil Nadu has image as a cheap destination for IT investments. The state has 22 approved IT parks. That Tidel Park in Chennai is the largest IT facility in India . Export from Tamilnadu have increased from US dollar 7.1 billion in 2007 8 to US dollar 14.51 billion in 2015-16 registering growth at a compound annual growth rate of 9.3%. The government is continuously working on developing strong IT infrastructure in the in order to support the development of hardware and software industries. Tamilnadu is among the few states in India to have an integrated IT infrastructure consisting of state data centre.

  1. Banking and financial services:-

Chennai is a key financial centre in Southern India with a strong presence of major Indian Financial Institutions and foreign banks. As of March 2015, banks based in Tamilnadu witnesses a credit deposit ratio of 119.5% where in the value for India was 77.5% during the same period. There are around 11,210 public sector banks( branch) and 7,546 private sector banks( branch).

  1. Drugs and pharmaceuticals:-

Tamilnadu is the fifth largest Pharmaceutical manufacturing state in the country accounts for over 10% of national production. The state has largest facilities for bulk drugs production, biotechnology and nanotechnology production. The state government has identified the drugs and pharmaceutical industry of the state to provide special capital incentives for its substantial growth and development.

  1. Agro and food processing:-

Tamilnadu with 7 Agro climatic zones and varied soil types is better suited for the production of fruits, vegetables, spices, plantation crops, flowers, medicinal and aromatic plants. The state is the third largest fruit producer in India with a production output of 7.27 million tons in 2015/16. Tamil Nadu vision 2020 3 in usage as investment of US dollar 8.3 billions for improving water resources developing Horticulture parks and Agro processing zones cold storage and other facilities. In 2015 the state government announced plan to set up four Mega Food parks in the state. Tamilnadu is the second largest producer of poultry and dairy products in India and the third largest producer of tea and coffee in the country.

  1. Leather:-

Tamil Nadu accounts for more than 70% of tanning done in the country. As of 2014 -15,the state accounted for the presence of 450 tanneries Chennai leather cluster is the largest exporter of value added leather production, it has been identified among the top 10 most dynamic industrial locations globally by the United Nation Industrial Development organisation. Tamil Nadu accounts for 35 to 38% of leather industries revenue in India and 40- 45% of Exports. In 2015 leather exports from the state was valued at US dollar 4.05 million. The state government has set up industrial estates and common effluent treatment plants for the leather clusters. Every year the state host the Indian International leather fair in Chennai which attracts new customer to Indian leather manufacturers industry and provides employment to about 2.5 million people.

  1. Electronic hardware :-

Chennai has emerged as the largest electronic hardware manufacturing hub in India. Tamilnadu ranks first in the country in electronic hardware manufacturing and contributes about 15% of national production. Electronic Hardware Output in the state group at a compound annual growth rate of 16.6% between 2008-9 and 2013- 14. In order to attract more investment in hardware manufacturing the state government has set up an expert committee with representatives from the industry to evaluate the potential and advise the government on the way forward . The exports of electronic and electrical goods from Chennai stood at 23,600 tonnes in 2012 -13 and 5,746 tonnes in 2014-15. The imports of electronic and electrical goods Store at 42192 tonnes in 2012/13 and 28325 tonnes in 2014-15.

  1. Renewable energy:-

Tamil Nadu has the highest installed wind energy capacity in India it accounts for 36% share in the country’s total wind installed capacity. The percentage of wind power utilised by the state stood at 22.53%, the highest among all Indian states.

  1. Tourism:-

Tamilnadu is a highly preferred tourist destination by both domestic and foreign tourists. Tamilnadu tourism industry grew at a compound annual growth rate of 33.3% between 2011 and 2014 in terms of tourist arrivals. Tamil Nadu vision 2020 envisages an investment of US dollar 2.1 bilion for the sector and aims to increase foreign tourist info from 3.6 million in 2012 to 15 million by 2023. The state is one of the leading medical and Wellness tourism destinations in India.

Farther, to enhance trade and commerce of Tamilnadu the state government has adapted single window clearance mechanism. Efforts of the state government were able to attract additional investments of US dollar 1.56 billions to be done in 42 Projects through single window facilities.

Some more facts and policies of. State government:- 

  1. Highway And minor ports policy 2014-15
  2. Tamilnadu industrial policy 2014.
  3. Tamilnadu Information Technology policy 2014/15.
  4. Micro, small and medium industrial policy 2014-15.
  5. Tamil Nadu disaster management policy
  6. Tamil Nadu biotechnology policy 2014.
  7. Tamilnadu automobile and auto components policy 2014.

These are some of government’s other initiatives to enhance trade and Commerce of the state .

 

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