Development of Major Industries in Tamilnadu – A Survey

Abstract

Tamilnadu Developed States in terms of industrial development and in the post liberalization era, the State has emerged as one of the front-runners by attracting a large number of domestic foreign investments. Next for the agriculture sector, the Industrial sector is the largest employer. The growth in manufacturing and services sectors, has fed and in turn benefited from the rise in the standard of living of the people in the state. The state is ranked third in the country with respect to per capita state income, which has grown at a Compound Average Growth Rate of 5 percent. The state also has a share of 9.1 percent Market Potential Value in the country, which reflects a high buying power and capacity of the market to absorb new products and services. There has been a significant increase in the proportion of the population in the middle-income group. The services sector is the dominant contributor to the Net State Domestic Income. The industrial sector is a driver of economic growth. The industrial sector is important in terms of its contribution to Gross State Domestic Product (GSDP) and employment. This sector, which is vital in Stimulating growth of the economy is closely interconnected with primary and tertiary sectors through its forward and backward linkages. Industrial policy initiatives in the State are designed in the backdrop of the increasing multifaceted globalization of production systems, especially, in terms of technology transfers and the development of physical infrastructure for higher growth. Recognizing the importance of industry, Tamil Nadu formulated the dynamic New Industrial Policy 2003 and evolved strategies to make the State a leading industrial destination in India.