With a 9 per cent compounded growth last year, ASSOCHAM suggested that the state needs to take up a slew of policy measures for realising growth. Industrial sector is the major contributor with a share of 30.4 per cent with a growth of 8.7 per cent in the last eight years. Services sector accounted for 61.1 per cent share in SDP. Power in TN is a major concern with a 17.5 per cent deficit last year alone.
Tamil Nadu has attained sixth position amid industrialised states, in attracting seven per cent of the total domestic and foreign committed investments across India, worth over Rs 143 lakh crore as of June 2013.
Over half of the total investment projects (53 per cent) are under implementation, while over 40 per cent are in the announcement stage and of the remaining, implementation of about 2.5 per cent has been stalled and there is no information of over four per cent projects, highlighted the ASSOCHAM paper which was jointly released by the chamber’s Southern Region Council chairperson, Ravindra Sannareddy, Ravi Wig, Chairman, India-SAARC Business Promotion Council and D S Rawat, National Secretary General, ASSOCHAM.
The power sector has acquired lion’s share of proposals; about 44.5 per cent with 132 proposals absorbing investments worth over Rs 4 lakh crore thereby clocking YOY growth of over 30 per cent.
Growing at about 5 per cent per annum, the primary sector comprising of agriculture, fishing, forestry and logging contributed about 8.5 per cent of the state domestic product. This portrays that agriculture is increasingly transforming into a failing economic activity in Tamil Nadu.
With a view to achieve and sustain a double digit growth rate in Tamil Nadu, ASSOCHAM has carried out a detailed SWOT analysis and has made the following key suggestions to the state government: development of minor ports, investment strategy, agriculture and services sector.
With the current growth rate and concentrating in the development of above sectors, TN can surely manage to realise double digit growth in coming years.