Ad Here  
Outward ho Need for radical RBI reform It’s raining funds for states. Really? The deluge and the several kindly souls Wanted: decentralised financial system Healthy finances of the Chennai Corporation CAD and the emergency thereof Deming awardees galore! Policy Makers Truce at Kasturi Buildings Sardar Sarovar – the seventy year itch A historic indirect tax reform No groundnuts in groundnut oil! Well-administered State Sustainably developing manufacturing sector… Cleansing Indian retail 1800 parties registered with EC – Less than 60 contest elections Focus on southern TN... Much ado about nothing Low profile moves Reform this licence to…kill A tale of two Bihar babus A dual GST that will protect prosperous states TN - so much to offer... CSR, tech revolution and bank crisis Research for survival... A blueprint for the future Economy through the month If not Tamil Nadu, where else? Why (not) abolish? Make way for Make in India... Skewed Economic Zones? Chennai Airport-Ready for a rapid take off... Tax evaders’ get out of Jail-Free Card Star of the South A gratifying record When the examiner cheated... Oh my GOLD Jobs - Lost, Changed or Gained South India’s 100 most valuable companies How will it PAN OUT Focus on agriculture and human resources A Fine division of responsibilities Welcome move to widen the tax net… Breaking news or breaking credibility? An eco-friendly commute in Mysuru Babes In the wood-RBI North block has little clue to curb inflation Welcome rains for damaged roads... They add lustre to Padma Awards In the horns of a dilemma Ganesh’s mantras Much can be done by us Land, land everywhere, but... Industry can’t get it from Mars, yet Little surplus after salaries, subsidies and debt servicing Rail-road Rajaraman Why throw baby with bath water? You too T M Krishna? Technology and economic development should be linked Sowing seeds of hope Babes In the wood-RBI North block has little clue to curb inflation Need plan over the long term planning Indian GST – Between extremes… Better relations with UK... Weaving wealth of western Tamil Nadu Public investments and welfare will surge MS Installed INDIA keeps its date with destiny PC please be our Santa Trail-blazing Tamil Nadu An eventful week with VVIPs of Delhi Miles to go... What the big B should offer? Strategic planning the missing link Tryst with GST After all, customer is the king Welcome Measures. Work for 10X Change The Great Fall Kudos to GIM organisers... BJP can now hasten its thrust for reforms Pool energy prices Two welcome measures from the chief minister...
Trail-blazing Tamil Nadu
On the southern tip of the Indian map lies Tamil Nadu: a State that has an exciting tradition of civilisation and culture that meshes seamlessly with modern industrial development. Home to enterprising entrepreneurs who belie their conservatism with the hot pace of growth they set. It’s a State that has done for itself very well. It can do still better as the Vision 2023 document envisages.

Tamil Nadu is one of India’s economically advanced states. Not just now; even in the past. Turn to history for proof.

Almost 70 years ago, at the crack of Independence, Tamil Nadu had several industrial units cutting across the state with Madras (now Chennai), Madurai and Coimbatore being the jewels in the crown.

Coimbatore in Western Tamil Nadu had a strong textile and supporting engineering industry. So did Madurai in the south. Chennai had its own rich cluster of industries:  Textile (B&C Mills/Binny) and engineering (Best & Co, Crompton Engineering, Parrys, Simpsons), to name a couple.

The start was good. But it needed progressive and visionary administration to take it forward. Luckily we had such an administration which introduced a slew of investment-friendly policies that drew out and encouraged new generations of entrepreneurs.

Look at the innovation: the Madras Industrial Investment Corporation (now TIIC), set up in 1949,  pioneered development finance. TIIC not only funded industries through term loans, it also extended equity support. In an investment-shy region this was like manna from heaven. In the entrepreneur’s mindset, equity was cheaper than debt!  And most start-ups didn’t have much anyway! The floodgates opened. Hundreds of units were set up in textiles, sugar, cement and other traditional sectors as also in entirely new areas such as aluminium, viscose, staple fibre and paper. So dynamic was TIIC that it later amended its Memorandum and Articles of Association to extend financial and equity assistance to shipping, recognising it as an industry!

The state helped businessmen engaged in trading to seamlessly transition to manufacturing. It was thus the dealers and distributors of popular, imported brands of bicycles, motor cycles and passenger cars, set up manufacturing facilities in collaboration with their principals, mostly in the UK. When the base expanded to the production of commercial vehicles and later tractors, it was a trigger for the mushrooming of a number of auto component manufacturing units. In quick time Chennai emerged strong in the engineering sector and earned the reputation as a strong centre for automobile and auto component manufacture. Along with these grew a flourishing services sector offering, among others, financial services and insurance.

And then the economy opened up in 1991. India shed itself free of Nehruvian socialism and married market economy. Tamil Nadu was ready for the giant leap forward as it had already built a strong base and this came in handy to carry out large volume production.

1 2 3 4 5
Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236