(Q) How have the industrial policies of various regimes helped industrial growth?
(A) Tamil Nadu has been a forerunner when it comes to industrial policies. It is very advanced when compared to other states in India. Many policies have served as examples and have been adopted by others. Former Chief Minister, K Kamaraj, set up the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) that laid the foundation to industrial estates that were carefully set up near the state borders. People from Karnataka either came and set up units or became vendors to the industries in Hosur. The story is similar if you take cases of Coimbatore, Ranipet, Vellore or Gummidipoondi.
(Q) How have consistent policies helped?
(A) We do not see any disturbance from political changes. For example, Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO) was set up in 1970. There have been many government changes thereafter, but it has only been fine-tuned to better suit the industry. There has been no question of one government countering the other government. This will never happen. Over the last 40 to 50 years, two parties have been alternating in Tamil Nadu and both have been industry-friendly and batted for the growth of manufacturing and services. Former Chief Minister M Karunanidhi, brought in Hyundai car manufacturing plant and was instrumental in the development of the IT ecosystem, which we see in Old Mahabalipuram Road. Later, J Jayalalithaa also brought a lot of industrial changes. One of the finest policies from her tenure was that 20 per cent allocation in all SIPCOT parks should be given to MSME ancillaries. This policy continues even today. This was based on the understanding that large industries depend on MSMEs for their growth. So, this is one of the finest policy initiatives that we can see even today and it has not been disturbed by any government. In the last four or five years, there have been new developments and initiatives. But whichever government comes, I am sure there won’t be any change in the policy.
(Q) What are your views on the distributed growth model of the state?
(A) Historically, Tamil Nadu has not been dependent on the capital city, Chennai. Sivakasi is known for its printing and fireworks industry. Dindigul is known for specialised locks. While Kumbakonam and Thanjavur are known for temples, they also make alloys. Madurai is focused on rubber products. The state has good road connectivity across major cities, besides port connectivity. It also has a good telecom network and access to banking with major public and private sector banks having presence across districts. The availability of a variety of foods across districts is also a strong advantage. The districts are self-sufficient and not dependent on Chennai.
(Q) Tamil Nadu is also a welfare state. There is also debate about freebies. What are your views?
(A) Essential freebies are accepted. For instance, free bus travel for senior citizens, students and disabled persons. Making it free for everyone should be debated. The state has done well in terms of education and healthcare. You get the same quality of education and healthcare everywhere. The state leads in social indicators and also in terms of gross enrolment in higher education. This indirectly helps the industry. In some countries, the industries have to take care of education and healthcare of employees and their families. In Tamil Nadu, you get very good healthcare from the government despite employers offering health insurance and mandatory Employees’ State Insurance.
(Q) Can you list some aspects which the state has done well and areas that need improvement?
(A) Education and healthcare are two aspects in which the state has done well. Another element is industrial policies, including a dedicated policy for MSMEs. The road infrastructure is good, gender equality is good and pay parity is narrow. On the other hand, the state must adopt a three language policy. We need more international airports. The credit access to MSMEs from banks should improve. The state and the central government should work together to ensure this.
(Q) What are your expectations from the new government?
(A) On behalf of MSMEs, we have submitted a manifesto to all political parties. One of the aspects we have highlighted is the steep increase in electricity charges. One has to take into account the total cost of electricity when compared to the unit cost. This needs to be addressed. Another aspect is the hike in property taxes. The SIDCO units pay maintenance charges to TANSIDCO. They also pay property tax to local bodies. This amounts to double taxation. This issue also needs to be addressed.