TAMIL NADU BLEND OF TRADITION AND TECHNOLOGY For updated information, please visit www.ibef.org February 2018 Table of Content Executive Summary……………….….…….3 Advantage Tamil Nadu…………...….……..5 Vision 2030……….…….……………..…….6 Tamil Nadu – An Introduction……………..8 Annual Budget 2017-18………….....……19 Infrastructure Status..................................20 Business Opportunities…….………..……41 Doing Business in Tamil Nadu……...……76 State Acts & Policies…….………......……77 EXECUTIVE SUMMARY … (1/2) . Gross state domestic product (GSDP) of Tamil Nadu grew at a CAGR of 11.16% between 2005-06 and 2016- 17, reaching US$ 207.79 billion in 2016-17. Strong growth in GSDP . Per capita GSDP of US$ 2,568.01 (at current prices) is nearly 1.82 times higher than the national average of US$ 1,389.6 Strong investment . The cumulative FDI inflows1 in the state during April 2000 to December 2017 amounted to US$ 26.52 billion. climate . Tamil Nadu has a diversified manufacturing sector and features among the leading states in several industries like automobiles & components, engineering, pharma, garments & textile products, leather products, chemicals & plastics, etc. Diversified industrial . It ranks first among the states in terms of number of factories and industrial workers. base . Due to its achievements as an auto production hub, Chennai has been dubbed as the ‘Detroit of India’. Due to its proximity with East Asian countries, Chennai is also endeavouring to become an international finance hub. IT exports1 from Tamil Nadu have increased from US$ 7.1 billion in 2007-08 to US$ 15.57 billion (E) in 2016- 17, registering a CAGR of 8.17%. Thriving services . Chennai is a key financial centre in South India, with strong presence of major Indian financial institutions & sector foreign banks. The World Bank has its back office in Chennai. It has a thriving tourism sector & ranks 3rd in India in terms of number of domestic tourist arrivals & 2nd in foreign tourist arrivals. Note: E - Expected Source: Central Statistics Office, Department of Industrial Policy and Promotion, 1Including Puducherry, News articles 3 TAMIL NADU For updated information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2) . It has well developed infrastructure with an excellent road and rail network, three major ports, 23 minor ports, and seven airports across the state providing excellent connectivity. In line with Vision 2023, it aims to step up infrastructure investment from 4-5% of GSDP to about 11.5% by Robust infrastructure 2019. Roads & highways, ports, railways, education and healthcare are likely to see major investments. The state also plans to develop 2 industrial corridors – Chennai-Bengaluru & Madurai-Tuticorin. Strong human resource . Tamil Nadu has 59 universities, 40 medical colleges, 517 engineering colleges, 447 polytechnics & 20 dental pool colleges. Source: Ministry of Tourism, News article, 1Including Pondicherry 4 TAMIL NADU For updated information, please visit www.ibef.org ADVANTAGE: TAMIL NADU 2016-17 High economic growth Rich talent pool 2023 Target . Tamil Nadu’s GSDP grew at a CAGR of 11.80% . The state has a highly qualified, skilled, disciplined, Per capita between 2005-06 and 2016-17. productivity-oriented and English-speaking human Per capita GSDP: US$ . The state recorded the fourth-largest GSDP among all resource pool. GSDP: US$ 2,735.29 states in India in 2014-15 (at current prices). Tamil Nadu produces nearly 4 lakh engineering & 10,000 . The state’s exports totalled US$ 27.9 billion in 2014-15, polytechnic students every year, the highest in the grew at a CAGR of 4.7% between 2007-08 and 2014- country. 15. Advantage Tamil Nadu Infrastructure Large industrial base . Tamil Nadu has well-developed social, physical and . Tamil Nadu has a range of manufacturing industries industrial infrastructure and virtual connectivity. such as automobiles & components, castings & . Excellent road and rail network, three major ports, 23 forgings, pumps & motors, garments & textile products, minor ports and seven airports provide excellent leather products, chemicals & plastics. connectivity. Tamil Nadu ranks first among all states in terms of the . It is one of the first states in India to have 100% number of factories and industrial workers. metalled road connectivity. India and China have agreed to develop Chennai- Chongqing as sister cities. Source: Ministry of Statistics and Programme Implementation, March 2015. Tamil Nadu Vision 2023 at 2010 Prices; News articles 5 TAMIL NADU For updated information, please visit www.ibef.org VISION 2023 … (1/2) . To nurture a culture of . To be India’s most responsive and economically transparent governance prosperous state by that ensures progress, 2023 and achieve six- security and equal fold growth in per opportunity to all capita income. stakeholders. To address the causes of Opportunity Growth . To exhibit a highly inclusive vulnerability arising due to growth pattern, leading to be natural calamities and economic a poverty free state with downturns, among others, and opportunities for gainful and Reduce mitigate their adverse effects. productive employment. vulnerability Opportunities Vision 2023 . To ensure peace, security and prosperity for all citizens and Trade & Heritage Development . To become the leading state businesses, facilitating free trade in social development, with movement between the state, rest the highest Human of India & the world. Investment Infrasturcture Development Index among all . To preserve and care for the Indian states. state’s ecology and heritage. To become one of the top three . To provide the best infrastructure preferred investment destinations services in India in terms of access in India and Asia. to housing, water & sanitation, . To be India’s innovation hub and energy, transportation, irrigation, knowledge capital. connectivity, healthcare and education. Source: Government of Tamil Nadu 6 TAMIL NADU For updated information, please visit www.ibef.org VISION 2023 … (2/2) Proposed investment . The state targets attracting investments to the tune of US$ 248.84 Sector billion between 2012-2023. The summary of the proposed sectoral (US$ billion) investments as per the phase-II of Vision 23, released in February Energy 64.59 2014 is as follows: Transport 61.07 Industrial and commercial infrastructure 28.41 Urban infrastructure 43.69 Agriculture 20.14 Human development (health & education) 9.81 Sub-total 227.71 General and social infrastructure projects 12.44 Capital improvements to existing projects 8.69 Sub-total 21.13 Grand total 248.84 Source: Vision Tamil Nadu 2023 7 TAMIL NADU For updated information, please visit www.ibef.org TAMIL NADU FACT FILE . Chennai, Coimbatore, Madurai, Thiruchirappalli, Salem, Tirunelveli & Erode are some of the key cities in the state. The climate ranges from dry sub-humid to semi-arid. Major rivers flowing through the state include Palar, Cheyyar, Ponnaiyar, Kaveri, Bhavani, Vaigai and Tamaraparani. Parameters Tamil Nadu Capital Chennai Geographical area (sq km) 130,058 Administrative districts (No) 32 Source: Maps of India Population density (persons per sq km) 555 . Tamil Nadu is the southern-most Indian state, surrounded by Andhra Total population (million) 72.14 Pradesh on the north, Karnataka & Kerala on the west, Indian Ocean Male population (million) 36.13 on the south, and Bay of Bengal on the east. Female population (million) 36.00 . Tamil Nadu is among the most industrialised states in the country. Tamil is the state language; English is also commonly used for Sex ratio (females per 1,000 males) 996 communication & as a medium of education. Literacy rate (%) 80.09 Source: Government of Tamil Nadu website, Census 2011 8 TAMIL NADU For updated information, please visit www.ibef.org TAMIL NADU IN FIGURES … (1/2) Parameter Tamil Nadu All states Source Economy 2016-17 2016-17 GSDP as a percentage of all states’ GSDP 8.78 100.0 Central Statistics Office GSDP growth rate (%) 10.40 11.52 Central Statistics Office Per capita GSDP (US$) 2,735.29 1,611 Central Statistics Office Physical Infrastructure Installed power capacity (MW) 29,457.69 334,399.83 Central Electricity Authority, as of January 2018 Telecom Regulatory Authority of India, as of Wireless subscribers (No) 87,029,047 1,167,435,645 December 2017 Telecom Regulatory Authority of India, as of Internet subscribers (No) 34,470,000 429,230,000 September 2017 NHAI & Road & Building Department, as of July National Highway length (km) 5,381 115,435 2017 Major and minor ports (No) 3 + 23 13 + 187 India Ports Association Airports (No) 7 125 Airports Authority of India 9 TAMIL NADU For updated information, please visit www.ibef.org TAMIL NADU IN FIGURES … (2/2) Parameter Tamil Nadu All states Source Social Indicators Literacy rate (%) 80.09 73.0 Census 2011 Birth rate (per 1,000 population) 15.0 20.4 SRS Bulletin Investments Department of Industrial Policy & Promotion, From FDI equity inflows (US$ billion) 26.521 367.93 April 2000 to December 2017 Industrial Infrastructure DEA, Ministry of Finance, Government of India, PPP projects completed & operational 67 1,534 February 2018 Ministry of Commerce & Industry, Department of Exporting SEZs (no) 37 222 Commerce, December 2017 Note : Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, 1 Includes Puducheery 10 TAMIL NADU For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP GSDP of Tamil Nadu at current prices . At current prices, Tamil Nadu’s GSDP* was about US$ 207.79 billion in 2016-17. (US$ billion) . The GSDP of the state grew at a CAGR of 7.87% between 2011- 250.00 CAGR 7.87% 12 and 2016-17. 200.00 150.00 207.79 185.25 100.00 161.20 142.30 141.70 137.10 50.00 0.00 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: Directorate of Economics & Statistics of Tamil Nadu, Central Statistics Office, GSDP* - Tamil Nadu Budget Speech 2016-17 11 TAMIL NADU For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP . Tamil Nadu’s net state domestic product (NSDP)# was about US$ NSDP of Tamil Nadu at current prices 185.26 billion in 2016-17.