Breakfast Meeting on Investing in Tamil Nadu – New Government Policy on Industry
AMCHAM’s Tamil Nadu Chapter held a breakfast meeting on September 26th in Chennai with guest speaker Dr. K.P. Karthikeyan IAS, Executive Director, Guidance Bureau, Government of Tamil Nadu. Dr. Karthikeyan began his presentation by describing the state of Tamil Nadu – its strategic location and climate conducive to year-round port operations with three modern ports and 16 minor ports; two of those — Chennai and Thoothukudi which have container handling facilities. He said that the state was well connected with an extensive road and rail network, besides modern telecommunications infrastructure.
The other points made in the presentation included: Tamil Nadu has the third largest economy among the Indian states. Currently, the state’s official gross domestic product (GDP) exceeds US$ 23 billion; the average growth rate in Tamil Nadu has remained around 6-7%, which is much higher than the average growth rate of Indian states.
In the 2018 NCAER (National Council of Applied Economic Research) – State Investment Potential Index Overall Rankings report, Tamil Nadu was ranked the second most attractive state in India for investments. Tamil Nadu has become a popular investment destination on the basis of its unique economic structure. The state is home to more than 100 industrial parks, including developed land, for those who want to start a new business. Unlike many other states in India, where all economic resources are concentrated in one or two regions, Tamil Nadu’s economic resources are well distributed across the state.
The state has a large number of windmills that it relies on to generate electricity. It is one of the few states in India that sells electricity to others. Tamil Nadu generates more than half of India’s wind energy. The state government operates many large public sector companies in diverse fields like watch-making and paper mills.
Tamil Nadu has a high per capita income and is one of the most stable and urbanized regions in the country. It is India’s second largest software exporter, in terms of value. The state has the potential to become a preferred international destination for investments and manufacturing. Through a combination of talent, technology and incentives, the state has all the ingredients to achieve its global ambitions of delivering world class products and services. Tamil Nadu’s growth is driven by the automotive, automotive components, textile, manufacturing, defense and aerospace, biotechnology, health, energy, pharmaceutical, animation and the visual effects industries, as well as other areas of IT.
Dr. Karthikeyan said that the Business Facilitation Act provides for an online single window clearances in a time bound manner, online tracking of approvals, deemed approvals for clearances upon reaching the given timelines, prompt grievance redressal mechanism, state level committee for large industries and district level committee for SME’s and covers pre-establishment clearances, pre operational clearances, renewals and incentives. The presentation concluded with a very interesting interactive session.
Consul General Robert Burgess addressed members giving them an update on the visa application process and wait times, U.S. – India business relations, the Howdy Modi event and the visit to the U.S. of a Tamil Nadu government delegation led by the Chief Minister.