Economy of Tamil Nadu
Tamil Nadu is the second richest[12] and wealthiest state in the Indian union by GDP[13] and is the most industrialised state in the country. More than 60% of the state is urbanized, accounting around 10.6% of the urban population in the country, while only comprising 6% of India's total population. Services contributes to 55% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 11%. Government is the major investor in the state, with 52% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. It has been ranked as the most economically free state in India by the Economic Freedom Rankings for the States of India.[14]
 | |
| Statistics | |
|---|---|
| GDP | ₹19.7 Trillion (US$298 billion) (2020-2021) |
| GDP rank | 2nd |
GDP by sector | Agriculture: 13% Industry: 34% Services: 53% (2017–18)[1] |
Population below poverty line | Template:Decreasepositive 4.3% in poverty (2020–21)[2] |
 0.709 high (2019) (11th) | |
| Unemployment |  1.1% (Nov 2020)[3] |
| External | |
| Exports | ₹3.63 lakh crore (US$42 billion) (2019–20) |
Export goods | Automobiles,[4] Mobile phone,[5] Software, Missile defense, Electronics, Telecommunications equipment,[6] Armaments,[7] Locomotives,[8] Ships, Machinery, Steel, Aluminium, Transportation equipment,[9] tyres, Textiles, Footwear, Leather, Chemicals, Cement, Plastics, Toys, Food processing, Seafood, Vegetables, Fruits, Tea and Coffee |
Main export partners |  Australia[10] |
FDI stock | ₹28,049 crore (US$3.2 billion) (2017–18)[11] |
| Public finances | |
| 23% of GSDP (2019–20 est.)[1] | |
| ₹454,176 crore (US$52 billion) (2.56% of GSDP) (2019–20 est.)[1] | |
| Revenues | ₹2.98 lakh crore (US$34 billion) (2020–21 est.)[1] |
| Expenses | ₹3.01 lakh crore (US$35 billion) (2020–21 est.)[1] |
Macroeconomic trend
This is a chart of trend of gross state domestic product of Tamil Nadu at market prices estimated in Indian rupees.
| Year | Gross state domestic product USD Rate Appreciated |
|---|---|
| 1960 | ₹1,112 crore (US$130 million) |
| 1970 | ₹2,371 crore (US$270 million) |
| 1980 | ₹8,081 crore (US$930 million) |
| 1990 | ₹31,339 crore (US$3.6 billion) |
| 2000 | ₹146,796 crore (US$17 billion) |
| 2010 | ₹584,896 crore (US$67 billion) |
| 2020 | ₹20.54 lakh crore (US$290 billion) |
Agriculture and livestock
Tamil Nadu has historically been an agricultural state, while its advances in other fields transformed the state into being an industrialized and innovation based economy, leading to competition for land and its resources. Agriculture is heavily dependent on the river water and monsoon rains. The perennial rivers are Palar, Cheyyar, Ponnaiyar, Kaveri, Meyar, Bhavani, Amaravathi, Vaigai, Chittar and Tamaraparani. Non-perennial rivers include the Vellar, Noyyal, Suruli, Siruvani, Gundar, Vaipar, Valparai and Varshali. Tamil Nadu is the highest producer of bananas and coconuts in the whole country. It is also a leading state in production of other crops such as sugarcane, cotton, kambu, corn, rye, groundnut and oil seeds. At present, Tamil Nadu is India's 4th largest producer of rice behind West Bengal, Uttar Pradesh and Punjab[15][16] Tamil Nadu is the home to Dr. M. S. Swaminathan, known as the "father of the Green Revolution" in India.[17] The state is one of the major producers of turmeric in India.
Given below is a table of 2015–16 national output share of select agricultural crops and allied segments in Tamil Nadu based on 2011 prices[18]
| Segment | National Share % |
|---|---|
| Drumstick | 98.0 |
| Tapioca | 44.4 |
| Floriculture | 16.5 |
| Gooseberry | 18 |
| Coconut | 29.1 |
| Tamarind | 25.3 |
| Meat | 7.5 |
| Turmeric | 14.6 |
| Banana | 19.4 |
| Ragi | 17.8 |
| Horsegram | 17.5 |
| Sapota | 17.4 |
| Urd | 14.7 |
| Groundnut | 14.2 |
| Cucumber | 12.6 |
| Maize | 12.3 |
| Egg | 12.2 |
| Carrot | 12.1 |
| Marine fish | 11.8 |
| Gur | 11.6 |
| Water melon | 11.4 |
| Jackfruit | 10.9 |
| Jowar | 10.6 |
| Tea | 8.5 |
| Cocoa | 8.2 |
| Moong | 7.9 |
| Oilseed | 7.7 |
| Papaya | 7.4 |
| Paddy | 6.9 |
| Bean | 6.7 |
| Fruit and vegetable | 6.3 |
| Sugarcane | 6.1 |
| Mango | 5.8 |
| Bitter gourd | 5.6 |
| Pear | 5.3 |
| Sericulture and Apiculture | 5.3 |
Mining
This is a chart of proven reserves of major minerals of Tamil Nadu[19] in 2001 by Department of Geology and Mining with figures in tonnes.
| Mineral | Reserve | National Share % |
|---|---|---|
| Lignite | 30,275,000 | 87 |
| Vermiculite | 2,000,000 | 66 |
| Garnet | 23,000,000 | 42 |
| Zircon | 8,000,000 | 38 |
| Graphite | 2,000,000 | 33 |
| Ilmenite | 98,000,000 | 28 |
| Rutile | 5,000,000 | 27 |
| Monazite | 2,000,000 | 25 |
| Magnesite | 73,000,000 | 17 |
Tamil Nadu has a few mining projects based on Titanium, Lignite, Magnesite, Graphite, Limestone, Granite and Bauxite.[20] The first one is the Neyveli Lignite Corporation that has led development of large industrial complex around Neyveli in Cuddalore district with Thermal power plants, Fertilizer, Brequetting and Carbonisation plants. Tata Iron and Steel Company (TISCO) have entered into MoU with Government of Tamil Nadu in June 2002 for establishing a titanium dioxide (TiO2) plant with a project outlay of $650 million. Magnesite mining is done at Salem apart from which mining of Bauxite ores are carried out at Yercaud and this region is also rich in Iron Ore Kanjamalai. Molybdenum is found in Dharmapuri, and is the only source in the country.
Energy
Tamil Nadu, being an industrialized and urbanized state, is among the top 3 states with respect to generation of electricity. The total installed capacity of Tamil Nadu stands at around 30200 MW as in September 2018, that derives 11500 MW of power from solar and wind energy. Tamil Nadu has the distinction of being the leader in renewable energy in India by adopting clean sources of energy and having established wind farms as early as 1995. Today it produces more wind power than Denmark and the Netherlands.
Wind energy
The Tamil Nadu Energy Development Agency (TEDA) is a Tamil Nadu government promoting renewable energy sources and energy conservation activities. The agency has largely been responsible for instigating the tremendous growth of Tamil Nadu in the development of wind power.[21] The total installed capacity of windmills in Tamil Nadu totals to around 8700MW. Muppandal wind farm is a renewable energy source, supplying the villagers with electricity for work.[22][23] Wind farms were built in Nagercoil and Tuticorin apart from already existing ones around Coimbatore, Pollachi, Dharapuram, Kangeyam and Udumalaipettai.
Solar
In March 2008, Signet Solar Inc.[24] signed a memorandum of understanding with the State government to build a INR 20 billion thin-film silicon photovoltaic module manufacturing plant in the Sriperumbudur Special Economic Zone.[25] In June 2008, Moser Baer inked a MoU with the state government to build INR 20 billion plant for manufacturing of silicon-based photovoltaic thin film modules and allied products in the Oragadam Special Economic Zone which is closer to the Signet Solar's plant in sriperumbudur.[26]
Nuclear
The Kalpakkam Nuclear Power Plant, Ennore Thermal Plant, Neyveli Lignite Power Plant, Virudhachalam Ceramics and the Narimanam Natural Gas Plants are major sources of Tamil Nadu's electricity. It is presently adding the Koodankulam Nuclear Power Plant to its energy grid. Tamil Nadu sources some of its power needs from renewable sources with wind power contributing over 2000 MW or over 20% of the needs. Tamil Nadu is facing largest power shortage since 2013 (34.1% deficit), the highest in the country, due to industrialization over the last decade.[27] India's leading steel producer SAIL has a steel plant in Salem, Tamil Nadu.[28] Tamil Nadu ranks first nationwide in diesel-based thermal electricity generation with national market share of over 34%.
Hydroelectric
The Mettur Dam is one of the largest dams in India. It was completed in 1936. The total length of the dam is 1700 meters. It is also called Stanley Reservoir. The Mettur Hydro Electrical power project is also quite large Mettur Dam. Mettur has a number of industries (50 km from Salem city): SISCOL,[29] MALCO (Madras Aluminium Company owned by Vedanta Resources), Chemplast (former known as Mettur Chemicals),[30] Thermal power plant, Hydel power plant and huge number of chemical industries. There are many other dams that provide irrigation and drinking water, including the Vaigai Dam.
Bio-diesel
Tamil Nadu at this time is the only state to have a formal Bio-Diesel Policy to use jatropha crops as a source of biofuel and to distribute wasteland to the poor farmers for the planting of these crops.[31]
Industry and manufacturing
One of the global electrical equipment public sector company BHEL has manufacturing plants at Tiruchirappalli and Ranipet. The Tamil Nadu state government owns the Tamil Nadu Newsprint and Papers (TNPL),[32] the world's biggest bagasse-based paper mills in Karur . The world's sixth largest manufacturer of watches together with TATA, under the brand name of "Titan" which has manufacturing plant in Hosur.[33] 40 percent of all wind-generated electricity in India is created by windmills in Tamil Nadu. Danish wind power company NEG Micon has established its manufacturing unit in Chennai.[34] Tamil Nadu is a leading producer of cement in India and with manufacturing units located at Ariyalur, Coimbatore, Karur and Tirunelveli. High-density Polyethylene mono filament yarn and associated products are manufactured in Karur for mosquito nets and fishing nets. More than 60% mosquito nets in India are manufactured here. The region around Salem is rich in mineral ores. The country's largest steel public sector undertaking, SAIL, has a steel plant in Salem.
Coimbatore is a major industrial hub in South India and houses more than 30,000 small, medium and large industries. Coimbatore is known as "Manchester of South India" due to its extensive textile industry and also referred to as "the Pump City" as it supplies half or 50% of India's requirements of motors and pumps.[35] The city is one of the largest exporters of textile, jewellery, wet grinders, poultry and auto components and the term "Coimbatore Wet Grinder" has been given a Geographical indication. Larsen & Toubro has 300 acre huge manufacturing campus in Coimbatore which houses various units of company, manufactures aerospace and defence parts for leading players in the market.
Tuticorin is known as "Gateway of Tamilnadu". Thoothukudi is the major chemical producer in the state. It produces the 70 percent of the total salt production in the state and 30 percent in the country.
IT/ITeS-Software
Tamil Nadu is one of the largest contributor of software exports majorly from its cities Chennai, Coimbatore, Trichy, Salem[36] and Madurai . State has 526 engineering colleges, the most for any state in India giving the services industry access to qualified and skilled labour force. The top engineering colleges in Tamil Nadu have been a major recruiting hub for the IT firms. According to estimates, about 50 per cent of the human resources required for the IT and ITES industry was being sourced from the state.[37] The state has a wide network of about 110 industrial parks and estates offering developed plots with supporting infrastructure.[38] Also, the state government is promoting other industrial parks like Rubber Park, Apparel Parks, Floriculture Park, TIDEL Park for IT/ITS, TICEL BioPark for Biotechnology,[39] Siruseri IT Park, Elcot SEZ and Agro Export Zones among others. Tamil Nadu has the largest number of Small and medium enterprises (SMEs) in India.[40]
This is a chart of trend of software exports from Tamil Nadu published by Electronics Corporation of Tamil Nadu with figures in Crores of Indian Rupees.[41]
| Year | Software exports |
|---|---|
| 1995 |  ₹370 crore (US$42 million)
|
| 2000 | ₹31,160 crore (US$3.6 billion)
|
| 2005 | ₹41,150 crore (US$4.7 billion)
|
| 2010 | ₹62,100 crore (US$7.1 billion)
|
| 2013 | ₹82,450 crore (US$9.5 billion)[42] |
| 2017 | ₹111,179 crore (US$13 billion)
|
| 2018 | ₹139,129 crore (US$16 billion)[43] |
Automotive
Chennai is nicknamed "The Detroit of Asia".[44][45] It is home to large number of auto component industries. Over 11.2% of the S&P CNX 500 conglomerates have corporate offices in Tamil Nadu. Tamil Nadu has manufacturing facilities from automobiles, railway coaches, battle-tanks, tractors, motorbikes and heavy vehicles to ships.
Alstom has a manufacturing facility in Coimbatore which manufactures rail transportation products.
Vehicle parts manufacturers
Madras Rubber Factory the local tyre manufacturer is located in Chennai and Perambalur. TI cycles of Murugappa group have their units in Chennai. UCAL Carburettors, TRW Rane, TVS Group are established in Hosur.TVS Srichakra Tyre works at Madurai. Coimbatore is home to Pricol, Elgi Equipments, Craftsman, Roots Horn, Rolon Chains and numerous Tier-I part suppliers.
Transportation industry
Custom built trucks operated in Tamil Nadu, Kerala and Karnataka are from Tiruchengode, Sankagiri, and Namakkal. 90 Percent of Private busses operating in South India are built in Karur. Karur is well known for its bus body building industries. More than 150 Bus body building industries are located in and around Karur. Apart from that, mostly all the TNSTC, MTC, SETC and PRTC busses are built in Karur.
Textiles and Apparels
Tamil Nadu is the largest textile hub of India. Tiruppur "Dollar City" due to its cotton production and textile industries. The textile industry plays a significant role in the Indian economy by providing direct employment to an estimated 35 million people, and thereby contributing 4% of GDP and 35% of gross export earnings. The textile sector contributes to 14% of the manufacturing sector. From Spinning to garment manufacturing, entire textile production chain facilities are in Tamil Nadu. About half of India's total spinning mill capacity is in Tamil Nadu. The western part of Tamil Nadu comprising Coimbatore, Tirupur, Erode, Namakkal, Karur and Dindigul has the majority of spinning mills manufacturing cotton/polyester/blended yarn, open end yarn and silk yarn used by garment units in Tamil Nadu, Maharastra etc. Yarn is also exported to China, Bangladesh etc. Tirupur knitted garment units have been exporting garments for about 3 decades with 2015–16 exports in the range of US$3 Billion. Karur is the major home textile (Curtain cloth, bed linens, kitchen linens, toilet linens, table linens, wall hangings etc.) manufacturing and export hub in India. Erode is the main cloth market in south India for both retail and wholesale ready-mades. Madras (Chennai) has a large presence of woven garments (shirts/pants) manufacturing units. Madurai and Kanchipuram are famous for handloom sarees exported / sold all over India. Lakshmi Machine Works [LMW], one of the three major textile machinery manufacturing companies in the world is located in Coimbatore. Savio also has a factory in Coimbatore. Many textile component manufacturers are in Coimbatore and some export to the Europe etc.
- ↑ 1.0 1.1 1.2 1.3 1.4 "Tamil Nadu Budget Analysis 2019–20". PRS Legislative Research. Retrieved 7 April 2020.
- ↑ "SDGs India Index". NITI Aayog. 31 December 2019.
- ↑ "Unemployment Rate in India". Centre for Monitoring Indian Economy. p. 1. Retrieved 3 November 2020.
- ↑ Simhan, TE Raja. "Chennai Port takes lead in wooing Kia Motors". @businessline.
- ↑ "India may become the second largest smartphone market: Xiaomi's Raghu Reddy". The Economic Times.
- ↑ "Nokia Siemens to expand Chennai facility". The Hindu. 9 August 2011 – via www.thehindu.com.
- ↑ "Ashok Leyland looking at Rs 5,100 crore revenue from defence exports".
- ↑ "Indian Railways to export six DMU train sets to Sri Lanka". www.cnbctv18.com. 11 July 2018.
- ↑ Market, Capital (10 July 2018). "Steel Strips Wheels bags its largest export order for US truck & trailer aftermarket". Business Standard India – via Business Standard.
- ↑ Suneja, Kirtika. "Australian exports to India to grow to $45 bn in 20 years, FDI to $100 bn, says report". The Economic Times.
- ↑ "Whopping 300% FDI inflow growth in this non-BJP state; here's list of other top performing states". 12 July 2018.
- ↑ https://indiaunfold.com/top-10-richest-states-in-india/
- ↑ "GDP of Indian states - StatisticsTimes.com". m.statisticstimes.com. Retrieved 1 June 2021.
- ↑ "Indian States by Economic Freedom - StatisticsTimes.com". statisticstimes.com. Retrieved 25 October 2018.
- ↑ "Top 10 Largest Rice Producing States in India 2018 – Bizvibe Blog". www.bizvibe.com. Retrieved 24 October 2018.
- ↑ "Government Policy Notes".
- ↑ "M. S. Swaminathan Research Foundation".
- ↑ "2015 agricultural output of Tamil Nadu based on 2011 prices" (PDF).
- ↑ "An overview of Mineral Reserves". Government of Tamil Nada. Retrieved 16 August 2006.
- ↑ Tamil Nadu Mining
- ↑ "TEDA catalyses renewable energy sector growth in Tamil Nadu". Archived from the original on 28 September 2006. Retrieved 28 October 2006.
- ↑ "Tapping the Wind – India". February 2005. Archived from the original on 21 February 2007. Retrieved 28 October 2006.
- ↑ Watts, Himangshu (11 November 2003). "Clean Energy Brings Windfall to Indian Village". Reuters News Service. Retrieved 28 October 2006.
- ↑ "Default Parallels Plesk Panel Page". Signetsolar.com. Retrieved 16 November 2012.
- ↑ "Archived copy". www.thaindian.com. Archived from the original on 23 May 2008. Retrieved 17 January 2022.
{{cite web}}: CS1 maint: archived copy as title (link) - ↑ "Moser Baer signs MoU with State on setting up photovoltaic plant". The Hindu. Chennai, India. 10 June 2008. Archived from the original on 7 November 2012.
- ↑ "Tamil Nadu faces largest power shortfall this year: Report – The Times of India". The Times of India.
- ↑ "SAIL Plant". Archived from the original on 30 December 2006. Retrieved 10 November 2006.
- ↑ "Southern Iron And Steel Company Limited, Pottaneri-m, Kalipatti Vi..." in.kompass.com. Retrieved 6 September 2021.
- ↑ "Chemplast Sanmar Ltd". Archived from the original on 12 November 2006. Retrieved 10 November 2006.
- ↑ "Clean Green Energy from Tamil Nadu, India". Retrieved 15 November 2006.
- ↑ TNPL
- ↑ "Tata group | Our businesses | Tata companies | Titan Industries". Tata.com. Archived from the original on 22 November 2012. Retrieved 16 November 2012.
- ↑ "Vestas Webpage". Archived from the original on 15 October 2006. Retrieved 10 November 2006.
- ↑ "Pump industry gears up for road ahead". @businessline. Retrieved 24 October 2018.
- ↑ "Salem - SEZ | ELCOT". elcot.in. Retrieved 6 September 2021.
- ↑ Sangeetha Kandavel (29 August 2015). "TCS jumps the gun in campus hiring". The Hindu. Archived from the original on 16 October 2015. Retrieved 29 August 2015.
- ↑ Example include Tidelpark and ITP Chennai Archived 14 November 2006 at the Wayback Machine
- ↑ "Ticel Bio Park". ticelbiopark.com.
- ↑ [1] Archived 19 November 2008 at the Wayback Machine
- ↑ "Status of IT industry in Tamil Nadu". ELCOT. Retrieved 16 August 2006.
- ↑ India, Press Trust of (25 March 2015). "TN software exports double in last 4 years to Rs 82,445 cr". Business Standard India. Press Trust of India – via Business Standard.
- ↑ "IT investments in Tamil Nadu down by 12% to ₹39,831 crore". @businessline.
- ↑ [2]
- ↑ Mallaby, Sebastian (5 December 2005). "Detroit's Next Big Threat". Washington Post. Retrieved 21 August 2021.