TN's diversification model to help address risks: Gokarn
The state has reported 12.5% growth in 2011-12 compared with 6.5% all-India GDP growth
Tamil Nadu has managed to show resilience during the bad times mainly due its diversification, which can be a good example on how diversification is a best way for lesser risk, says Reserve Bank of India (RBI's) Deputy Governor Subir Gokarn.
He noted that the state reported 12.5 per cent growth in 2011-12 as compared to 6.5 per cent All India GDP growth.
Delivering his address at Assocham's seminar titled "Vision Tamil Nadu Building Sustainable Tomorrow" Gokarn said, some of the key reasons, Tamil Nadu growth has been driven by both industry and services, industrial base is relatively diversified, competitiveness in both labour intensive and capital intensive sectors and last human capital.
He noted, industry's share in state GDP was 30.5 per cent in 2001-02, which came down to 24.8 per cent in 2011-12. This was due to increase in the contribution of service sector which rose 65.8 per cent in 2011-12 from 52.8 per cent.
He added, agriculture's contribution dropped to 7.7 per cent from 16.7 per cent due to the same period and due to the same reason.
When it comes to employment generation 17 per cent was from machinery and equipment, 14 per cent from motor vehicles, 10 per cent from fabrics, nine per cent from textiles, 39 per cent from other noni-metalic mineral products and five per cent from food products. According to 2009-10 data.
"It is important to place strategic thinking for industrial development. Tamil Nadu relatively well performing state, especially in the last 2-3 years".
Earlier Rajkumar Dhoot, president, Assocham said that the state has essential facility which an investor could look for.
"Tamil Nadu has one of the best investor friendly policies, better infrastructure, skill workforce and one of the best functioning Single Window Clarence System and industry friendly environment to encourage investment in the state.