Tamil Nadu ranks 6th in committed investments

State attracted investment proposals worth over Rs 10 lakh crore as of June 2013

Tamil Nadu has attained the sixth position among the industrialised states in the country in attracting domestic and foreign committed investments. The state received seven per cent of the entire committed Rs 143 lakh crore as on June 30, 2013, according to the industry body Associated Chambers of Commerce and Industry of India (Assocham).

The state clocked a growth rate of 10 per cent on a year-on-year basis, attracting investment proposals worth over Rs 10 lakh crore as of June 2013, said Assocham in a strategy paper titled 'Realising Double Digit Growth in Tamil Nadu'.

Over half of the total investment projects (53 per cent) is under implementation, while over 40 per cent is 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, said the report.

The power sector has acquired a major share of about 44.5 per cent with 132 investment proposals for over Rs 4 lakh crore, clocking growth of over 30 per cent year-on-year. The services sector accounted for the second highest share of over 29 per cent followed by manufacturing (16 per cent) and real estate (over nine per cent).

State economy grew 9%
The paper stated Tamil Nadu’s economy grew at a compound annual growth rate (CAGR) of nine per cent during 2004-05 and 2012-13. Clocking a CAGR of about 10 per cent, the services sector accounted for highest contribution of over 61 per cent to GSDP.

The industrial sector grew at about 9 per cent CAGR contributing over 30 per cent to the GSDP. Infrastructure bottlenecks coupled with lack of credit availability, primitive technologies, labour pangs and  environmental issues hit growth, the report stated.

Growing at about five per cent, the primary sector comprising agriculture, fishing, forestry and logging contributed about 8.5 per cent to the GSDP.

The industry body has recommended TN adopt a full-fledged development of minor ports and connect them to industrial corridors of the state. Besides, the state maritime board should form joint ventures with private investors to develop ports and special economic zones in port areas.