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TAMIL NADU November 2010 TAMIL NADU November 2010 TAMIL NADU November 2010 TAMIL NADU November 2010 Investment climate of a state is determined by a mix of factors • Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation Regulatory framework Resources/Inputs Investment climate of a state Incentives to industry Physical and social infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as telecom, IT, • Availability of finance at cost-effective terms etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities 2 TAMIL NADU November 2010 Contents Advantage Tamil Nadu State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Tamil Nadu 3 ADVANTAGE TAMIL NADU Tamil Nadu November 2010 Tamil Nadu – State profile • Tamil Nadu covers an area of 130,058 sq km. It is the eleventh-largest state and the seventh-most- populous state in India; it has 32 districts. • Tamil Nadu is among the most industrialised states in the country. It also has a rich tradition of literature, music and dance. • The climate ranges from dry sub-humid to semi- arid. Important rivers flowing through the state include Palar, Cheyyar, Ponnaiyar, Kaveri, Bhavani, Vaigai and Tamaraparani. • Chennai is the capital city. Coimbatore, Madurai, Thiruchirappalli, Salem, Tirunelveli and Erode are some of the other key cities in the state. • Tamil is the state language; English is also commonly used for communication and as a medium of education. Source: Maps of India 4 ADVANTAGE TAMIL NADU Tamil Nadu November 2010 Advantage Tamil Nadu … (1/2) Highly industrialised with greater level of urbanisation Tamil Nadu has attracted several industrial sectors that are a part of India‟s new economy sectors. In the last three years, these industries have helped the state achieve over 13 per cent of GSDP growth. The Census 2001 highlighted that Tamil Nadu has the highest level of urbanisation rate (43.86 per cent) among all states. Among the states with larger FDI inflows The state attracted cumulative FDI inflows of US$ 5.7 billion between April 2000 and May 2010 and is amongst the highest FDI attracting states. FDI inflows have helped achieve greater technological advancement and more exportable products. Rich labour pool and low cost of manpower The state comprises of well-qualified, skilled, disciplined, productivity-oriented and English-speaking workforce. The standard of education and educational institutions is highly rated in the country. Average wages are also lower than similar workforce in the developed countries. Source: Maps of India 5 ADVANTAGE TAMIL NADU Tamil Nadu November 2010 Advantage Tamil Nadu … (2/2) Facilitating infrastructure Infrastructure development of Chennai have been rated better than other big cities by independent site evaluation studies of organisations such as Ford, the World Bank, BMW, Foxconn, Standard Chartered, Nokia and Flextronics. Good living standards and low crime rate The state has largely peaceful living conditions and has low crime rate, making it an attractive destination for industries. There are several places for recreation and tourism. Political environment The state has a stable political environment with a single-party government. Successive state governments have been committed towards creating a progressive business environment. Source: Maps of India 6 ADVANTAGE TAMIL NADU Tamil Nadu November 2010 Tamil Nadu in figures … (1/2) Parameter Tamil Nadu All-states Source Economy GSDP as a percentage of all states‟ GSDP 7.7 100.0 CMIE, as of 2007-08, current prices Average GSDP growth rate (%)* 11.0 11.8 CMIE, 2000-01 to 2007-08, current prices Per capita GSDP (US$) 1,150.9 992.5 CMIE, as of 2007-08, current prices Physical infrastructure Installed power capacity (MW) 14,410.0 159,398.5 Central Electricity Authority, as of March 2010 Cellular Operators Association of India, as of June GSM cellular subscribers (No) 36,117,977 456,586,162 2010 Broadband subscribers (No) 644,912 4,981,976 As of October 2008 Ministry of Road Transport & Highways, Annual National highway length (km) 4,832 70,548 Report 2008-09 Major and minor ports (No) 3 + 15 12 + 187 Indian Ports Association Airports (No) 6 133 Airport Authority of India Social indicators Literacy rate (%) 73.5 64.8 Census of India, 2001 Ministry of Health and Family Welfare, RHS Birth rate (per 1,000 population) 16.0 22.8 Bulletin, March 2008 *Calculated in Indian rupee terms 7 ADVANTAGE TAMIL NADU Tamil Nadu November 2010 Tamil Nadu in figures … (2/2) Parameter Tamil Nadu All-states Source Ease of doing business Department of Industrial Policy and Promotion, FDI inflows (US$ billion) 5.7 120.2 April 2000 to May 2010 Outstanding investments 135.4 1,972.6 CMIE, as of March 2010 (US$ billion) Industrial infrastructure PPP projects (No) 39 515 www.pppindiadatabase.com Notified as of July 2010, SEZ (No) 57 363 www.sezindia.nic.in PPP: public private partnership, SEZ: special economic zone Parameter Tamil Nadu Government Policy support Industry overall, micro, small and medium industries, IT and ITeS, Sectors with specific policies tourism, biotechnology, textiles Availability of labour Adequate skilled labour available 8 ADVANTAGE TAMIL NADU Tamil Nadu November 2010 Key industries with policy thrust and factor advantages High IT Automotive Agro-industry Minerals Electronics Tourism Medium Textiles Policy thrust Policy Cement Chemicals and fertilisers Engineering Banking and financial services Leather Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 9 TAMIL NADU November 2010 Contents Advantage Tamil Nadu State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Tamil Nadu 10 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Tamil Nadu November 2010 Socio-economic snapshot of Tamil Nadu Parameters Tamil Nadu Capital Chennai Geographical area (sq km) 130,058 Administrative districts (No) 32 Population density (persons per sq km) 480 Total population (million) 62.4 Male population (million) 31.4 Female population (million) 31.0 Population growth rate 1991-2001 (%) 11.2 Sex ratio (females per 1,000 males) 987 Literacy rate (%) 73.5 Male (%) 82.4 Female (%) 64.4 Birth rate (per 1,000 live population) 16.0 Sources: Economic Survey of Tamil Nadu 2007-08, Directorate of Economics and Statistics, Census 2001, Ministry of Health and Family Welfare, Sample Registration System 2008 11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Tamil Nadu November 2010 Tamil Nadu‟s GSDP • At current prices, the Gross State Domestic Tamil Nadu‟s GSDP (US$ billion) Product (GSDP) of Tamil Nadu was about US$ 73.7 billion in 2008-09. 2008-09 73.7 2007-08 75.9 2006-07 65.9 • The average GSDP growth rate from 1999-2000 2005-06 52.2 to 2008-09 was about 11.0 per cent. 2004-05 44.8 2003-04 40.1 CAGR 2002-03 34.7 11.0% 2001-02 31.0 2000-01 30.4 1999-00 28.8 0.0 20.0 40.0 60.0 80.0 US$ billion Source: CMIE 12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Tamil Nadu November 2010 Tamil Nadu‟s NSDP • The Net State Domestic Product (NSDP) of Tamil Nadu‟s NSDP (US$ billion) Tamil Nadu was about US$ 65.0 billion in 2008- 09. 2008-09 65.0 2007-08 66.8 • The average NSDP growth rate from 1999-2000 2006-07 57.9 to 2008-09 was about 10.9 per cent. 2005-06 45.7 2004-05 39.2 CAGR 2003-04 35.2 10.9% 2002-03 30.3 2001-02 27.4 2000-01 27.0 1999-00 25.7 0.0 20.0 40.0 60.0 80.0 US$ billion Source: CMIE 13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Tamil Nadu November 2010 The tertiary sector has an increasing share in Tamil Nadu‟s economy • The tertiary sector‟s share in GSDP was 56.7 per Percentage distribution of GSDP cent in 2008-09. Trade, hotels and restaurants – CAGR the largest sub-group of the sector – registered a growth of 11.9 per cent over the previous year. 53.1 56.7 11.7% • The share of the secondary sector in GSDP was 30.6 per cent in 2008-09; its growth was driven 29.6 11.3% by manufacturing, which recorded a growth of 30.6 10.1 per cent between 1999-2000 and 2008-09. 17.4 12.7 7.0% 1999-00 2008-09 Primary Sector Secondary Sector Tertiary Sector Source: CMIE 14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Tamil Nadu November 2010 Per capita GSDP • In 2008-09, the state‟s per capita GSDP was US$ 1,110.8. • The per capita GSDP increased at a CAGR of 10.1 per cent between 1999-2000 and 2008-09. Per capita GSDP 1,400.0 1,200.0 1,150.9 1,110.8 1,007.6 1,000.0 803.7 800.0 695.1 628.2 (US$) 600.0 547.6 467.4 488.8 493.9 400.0 200.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: CMIE 15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Tamil Nadu November 2010 Consumer expenditure on household goods and services • Tamil Nadu is comparable to the all-India level with regards to share of expenditure on food, education, medical and durable goods.
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