Tamil Nadu moots on creation of financial hub

Govt studying various models including Gujarat's GIFT

The Tamil Nadu government is exploring opportunity of setting up a financial hub in the state, attracting investors in the financial sector to set up shop in a region.

It may be noted that a Financial City was proposed by the previous Dravida Munnetra Kazhagam (DMK) government in Chennai, a project which did not progress after the current All India Anna Dravida Munnetra Kazhagam (AIADMK) government took charge.

According to a senior official from the state, a government body has been appointed to conduct a study on the idea and is looking at what is in it for the state to set up a financial hub.

The government has also been looking at various models including the Gujarat International Finance Tec-City (GIFT), a central business district designed as hub for the global finance services industry to cater to India's large financial services potential.

It is also looking at models in other countries and what the regulatory frameworks in India are, related to this, said C V Sankar, additional chief secretary to the government, Industries department.

Speaking to the reporters in the sidelines of the financial conclave organised by the Government of Tamil Nadu, to inform the investors and financial institutions of the opportunities in the sector, he said that the government is in discussion with various experts in the industry and banking sector on this.

The government is also interested to open an Active Pharmaceutical Ingredient (API) park project in the State. The Department of Pharmaceuticals has asked for 2000 acres from the State government to start the proposed project and the State government has identified around 700 acres near Chennai for this. The State has informed the centre about this and hope that it would get a favourable response, he added.

Inaugurating the Conclave, he said that the State's Gross State Domestic Product (GSDP) has grown 14 per cent to Rs 9.7 lakh crore in 2014-15, compared to Rs 8.62 lakh crore, at current prices. The exports from the state has gone up to $22 billion in 2010-11 to $35 billion ni 2014-15, with a combined annual growth rate of 12 per cent.

Foreign Direct Investment (FDI) in the State, in the last four years, from 2011, has almost doubled the cumulative FDI inflow during 2000 to April 2011, which was $6.8 billion. In the last four years, it has been $11 billion. During the financial year 2014-15, the FDI inflow has grown by 70 per cent to $3.8 billion, compared to $2.1 billion in 2013-14, he added.