(Sh)economy is the Focus

Industrial Economist (IE): Tamil Nadu tops in women’s participation in the workforce. What are the key state government initiatives driving this?

T R B Rajaa (TRB): Tamil Nadu’s strength comes from a combination of social progress and policy intent. The state’s social fabric has consistently supported women’s education and economic participation and these val­ues are rooted in the principles of our ideological leader Periyar. From Anna to Kalaignar to now our CM M K Sta­lin, we have upheld these principles by converting them into sound policy. The free colour TV scheme enabled women to see other women succeed and made them aspire for their girl children to also succeed and be eco­nomically independent. Under the leadership of our CM, schemes like Pudhumai Penn have ensured con­tinuity in higher education for girls. Naan Mudhalvan aligns education with employability, ensuring young women transition into jobs with rel­evant skills. With campaigns like Vellum Thamizh Pengal, we have showcased the successes of our wom­en and the outcomes of our schemes, so that the next crop of women also succeed and that cycle continues.

Equally important is safety and mobil­ity. Free bus travel for women under Vidiyal Payanam scheme, safer public spaces and workplace safety norms have reduced economic and non-eco­nomic barriers.

Tamil Nadu was also among the earli­est states to reform labour regulations to enable women to work across shifts in manufacturing, with strong safeguards. This is structural empow­erment, not symbolic and that is why we have very high labour force partici­pation of women.

IE: As the minister in charge of at­tracting investments, is women employment a key focus while sign­ing Memoranda of Understandings (MoUs)?

TRB: Absolutely. Women constitute half of society and half of the potential workforce. Any serious growth strat­egy must account for this. Increasing women’s workforce participation di­rectly expands the effective labour base and raises overall productivity.

Tamil Nadu already demonstrates this in outcomes. Over 40 per cent of women employed in India’s organised manufacturing sector work in Tamil Nadu, the highest share for any state. This reflects decades of sustained investment in girls’ education, safe mobility, progressive labour practices and indus­trial access for women.

Tamil Nadu has consistently emerged as a frontrunner in industrial growth and women’s workforce participation. With record investment inflows, high MoU conversion rate and progressive policies that combine social justice with economic strategy, the state presents a distinctive development model. In a conversation with T R B Rajaa, Minister for Industries, Investment Promotion and Commerce, we explore how Tamil Nadu is aligning inclusion, industrial depth, and governance credibility to drive sustainable, broad-based growth.

When we evaluate investment proposals, we actively encourage companies to design workforce models that include women across roles and levels. Many recent manufacturing and technology investments have committed to high female participation. For Tamil Nadu, this is both an economic and a social priority and this is a direct outcome of our policies. For in­stance, we have a Diversity, Equity, and Inclusion( DEI ) payroll subsidy policy for Global Capability Centres (GCCs), which encourages companies to hire women.

IE: Which sectors have the highest scope for improv­ing women workforce participation?

TRB: The next phase is clearly about high-value em­ployment. We see strong scope in GCC, research and development, engineering services, product design, electronics and advanced manufacturing. Tamil Nadu already has a large base of educated women. The focus now is on moving from entry-level roles to leadership, R&D and core innovation functions. That transition is critical for both income growth and economic depth. For rural women, who are unskilled or semi-skilled, the footwear industry is key.

IE: Tamil Nadu has attracted significant investments over the last five years. What are the key driving fac­tors?

TRB: First, policy clarity and continuity. Investors know Tamil Nadu stands for long term industrial depth, policy continuity, export orientation and a skilled workforce backed by stable governance. The state’s industrial policies are consistent across sectors and timeframes and commit­ments made to investors are honoured through execution. Second, credibility of MoUs: Since 2021 the state has signed over 1176 MoUs worth Rs 12.16 lakh crore, and 73 per cent of these commitments are already under execu­tion or in advanced stages of implementation.

This high conversion rate comes from disciplined project selection, realistic timelines and continuous follow up. It is far above the 40 per cent figure sometimes cited and shows that most MoUs lead to real projects. Third, institutional coor­dination: Departments work together as a uni­fied system rather than in silos. The recent Tourism Conclave and Education Summit are good examples. Tourism, culture, infrastructure, environment and local body departments aligned on destination de­velopment, heritage conservation, connectivity and private investment under one integrated framework. We have a special committee which has the secretar­ies of all the major departments who work towards grounding investments.

This “whole of government” approach gives inves­tors confidence that different arms of the state will co operate to facilitate their projects. Investors value pre­dictability as much as financial incentives.

IE: What has driven this high MoU conversion rate?

TRB: Conversion improves when governments sign only the MoUs which are credible, and when we stay engaged with the investors after the signing. We have built a system of regular follow-ups, project track­ing, and inter-departmental problem solving. We are probably the only state to have a MoU conversion com­mittee, headed by the chief secretary and myself. We also prioritise investors who are aligned with Tamil Nadu’s strengths and our targeted efforts for inclusive and distributed growth, rather than chasing headline numbers. This discipline ensures timelines are realis­tic and execution happens on the ground.

IE: With increasing inter-state competition, what are Tamil Nadu’s unique advantages?

TRB: Tamil Nadu does not consider other states our competition, only other countries. We combine scale, depth and stability through measurable outcomes. The industrial base is diversified across automobiles, auto components, electronics, textiles, footwear, chemicals and emerging sectors such as EVs, semiconductors and GCC. Tamil Nadu exported goods worth over USD 46 billion in the last financial year and contributed over one-third of India’s electronics exports, reflecting strong integration with global value chains. Infrastructure strength supports this scale. Industrial parks exist in 35 districts. Power supply is reliable with over half of installed capacity from renewable sources. Ports, air­ports, highways and multimodal logistics parks provide efficient connectivity for domestic and export markets. Governance stability reinforces investor confidence. A single-window system delivers over 200 government services online, supported by coordinated action across departments. This enables investors to plan operations over long horizons with clarity and predictability.