TN has a once in a decade opportunity to attract FDI

Tamil Nadu has a once in a decade opportunity to grab its share of FDI and remain the leader in industrial development in India. This is an opportunity for the State to become a global hub synonymous with producing the world’s best and latest products, said a KPMG-FICCI report on Tamil Nadu – a Great Opportunity to build on its strong core.

The report provides a spotlight on the the initiatives taken by the State to promote investment and the indicative sectoral opportunities.

With the economy now recovering from the impact of the Covid-19 pandemic and the Centre focussing on reviving private sector enterprise and making India self-reliant through the Atmanirbhar Bharat programme, States like Tamil Nadu that are manufacturing hubs are standing on the threshold of India integrating in scale, size and extent in to global trade, the report said.

Over the last six months, large firms in countries like China, South Korea and Japan have started considering India as a location to either shift their current plants or build new ones. These firms not only want to target the fast-expanding market but also export products.

The range of investments into India not only cover core sectors such as automotive and industrial equipment manufacturing in which Tamil Nadu is a leader, but also expand in to new sectors such as large LCD display fabs, toys, footwear, bulk drugs, electronic toys and gadgets, processed seafood, defence electronics and specialised textiles for variety of applications, which have potential to create employment in large numbers, the reports said.

While Tamil Nadu focuses on attracting investment into large manufacturing units, it also needs to focus on attracting investment into allied sectors such as infrastructure; education and tourism to provide a ‘well-rounded’ ecosystem for people.

On notable recent achievements, the report said that the State recorded higher economic growth than the national average for the third consecutive year in 2019-20, thus making it a popular investment destination. Despite a setback due to the Covid-19 pandemic-induced lockdown in March, the State continued to witness new projects through the year, the report said. The Hindu BusinessLine