Union Budget 2023-24
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SNAPSHOT

Home to the highest number of factories in India - 38,800 units

Tamil Nadu has a diversified manufacturing sector and features among the leaders in several industries such as automobiles, pharmaceuticals, textiles, leather products, chemicals, among others.

Tamil Nadu is situated at the South-Eastern extremity of the Indian Peninsula. The state is bounded on the north by Karnataka and Andhra Pradesh, on the west by Kerala, on the east by the Bay of Bengal, and on the South by the Indian Ocean. Tamil Nadu has a well-developed infrastructure with an excellent road and rail network and seven airports. The state’s coastline of 1,076 km is the second-longest in India and has 4 major ports. Tamil Nadu is recognized as an “Achiever” among the Coastal states by DPIIT in Logistics Ease (LEADS 2022) and is ranked #4 in Export Preparedness Index 2021. The state is a major contributor to India's renewable energy capacity at 17.62 GW and has a total installed power capacity of 37.22 GW.

SEZ

Highest number of operational SEZs (50) in India

 total power generation

Ranked 12th globally in terms of total wind energy output

10 auto manufacturing hubs

Among the top 10 auto manufacturing hubs in the world with Chennai alone having 1.71 mn installed capacity to produce cars

Focus sectors Tamil Nadu

Automobile and Auto-Components

Tamil Nadu is one of the top 10 Automobile Hubs in the World

It is also the export hub of passenger vehicles, accounting for 70% of India's overall exports. Chennai, the capital of Tamil Nadu, is one of the largest auto hubs of India. Tamil Nadu is the largest tyre manufacturing state in India and home to over 80 auto component manufacturers. The state governments has planned a mega-cluster to bolster precision engineering at Thirumudivakkam for support auto-component manufacturing. 

Chennai has an installed capacity to produce

  • Three cars every minute
  • One truck every 2 minutes
  • One motorcycle every 6 seconds Kamarajar Port in Ennore, Chennai has dedicated berths for automobile exports
Focus sectors Tamil Nadu

Aerospace

Home to premier Tamil Nadu Defence Industrial Corridor attracting investments of $1.6 Bn

Aerospace Park in Sriperumbudur with an Advanced Computing and Design Engineering Centre (ACDEC) is under construction

  • More than 120 aerospace manufacturing companies have their presence in the State
  • More than 700 suppliers to various defence PSUs are operating in Tamil Nadu
  • More than 5000 aerospace engineers graduate every year from Tamil Nadu
  • The state is planning Special Purpose Aviation Resource Cluster SEZs (SPARKS) to boost investments in the sector and to create 100,000 direct and indirect employment opportunities for highly skilled resources
Focus sectors Tamil Nadu

Renewable Energy

Offshore Wind Energy Potential of 35GW

Tamil Nadu is amongst the top states in India pursuing Energy efficiency initiatives

Electric Vehicles

Electric Vehicles

Tamil Nadu played a pivotal role in the manufacturing of two-wheeler EVs in the country, approximately 46% of all two-wheelers sold in India were manufactured in Tamil Nadu.

It has a huge scope for upgradation and expansion for producing Electric Vehicles within the exiting manufacturing facilities. The first EV SUV made in India was manufactured in Tamil Nadu by Hyundai.

Government of Tamil Nadu has sanctioned INR 500 cr for procurement of 1000 new buses out of the existing 20,257 buses under Tamil Nadu State Transport Undertaking.

Government of Tamil Nadu will reimburse employee’s contribution to the Employees’ Provident Fund up to INR 48,000 per person as skill subsidy for a period of one year.

Focus sectors Tamil Nadu

Electronics

2nd in India in Computer, Electronics and Optical Products Manufacturing Highlights

20% of overall electronics and hardware manufacturing for India is or India is done  is There are two sector specific SEZs for Electronics and Hardware in Kancheepuram district - Hi-Tech Industrial Park (570 acres) in Sriperumbudur and Industrial Park in Oragadam (340 acres). 

Focus sectors Tamil Nadu

Food Processing

8% - Tamil Nadu contributes to India’s Food Processing Output

First state to implement contract farming. Significantly easing investor participation in the Agro & Food processing sector

3.85 lakh ha. of effective inland water spread area and 56,000 ha. of brackish water area enabling favourable fisheries ecosystem

In FY 2022-23, the Tamil Nadu has exported about $432 bn worth of marine products. 

2nd - Highest Number of Food Processing Units in the Country

The Government of Tamil Nadu is establishing 8 Agro-processing clusters and 6 mega Food Park

Focus sectors Tamil Nadu

Heavy Engineering

2nd in the Production of General-Purpose and Special-Purpose Machinery

Ranks 2nd in India in Heavy Engineering Exports - FY 2017-18.

In FY 2022-23, Tamil Nadu ranked 2nd amongst all states by contributing 16% India's overall engineering exports. 

Focus sectors Tamil Nadu

Pharmaceuticals and Biotechnology

Tamil Nadu is the major producer of pharmaceutical products in India and accounts for 10% of the total pharmaceutical production of the country.

The state has existing and upcoming SEZs and dedicated bio-pharmaceutical parks that offer research labs, advanced medical equipment and genetic engineering as some of the facilities. The state government has initiated various flagship infrastructure projects in the sector such as the TICEL Bio Park-II in Chennai and TICEL Bio Park - III in Coimbatore. 

 

 

Focus sectors Tamil Nadu

Textile and Garments

Tamil Nadu ranks 1st in apparel production and 2nd in textile production in India. It houses India's largest spinning industry, accounting for almost 40% of the total installed capacity of the country.

The state is also the largest producer of cotton yarn in India and accounts for 41% of the country’s production. Textile and apparel sector together provide employment to 35% of the state's population. The state has about 6 upcoming textile parks and 2 upcoming apparel parks.

Tamil Nadu contributes to one third of the textile business in India and Coimbatore, Tirupur and Erode districts form the 'Textile Valley of Tamil Nadu'.

Tamil Nadu is called the Yarn Bowl of India since it produces 40% of the total yarn in India

Out of 13,000 garment units in India, 6,500 units are located in Tamil Nadu

Focus sectors Tamil Nadu

Information Technology

11% share of total IT Investments in India and 3rd in the Software Exports in the Country

The state has the largest telecom bandwidth and highest teledensity in India of 14.8 tbps. Chennai, the capital of Tamil Nadu, has about 1,780 IT units and employs more than 400,000 professionals. Tamil Nadu had 16 operational SEZs for IT/ITeS sector as of July 2016. The state government offers various training and capital subsidies to promote investments in the sector.

Focus sectors Tamil Nadu

Tourism

Tamil Nadu is ranked 1st in both domestic and foreign tourist arrivals in consecutively during 2014-2016. Tourism sector grew at a CAGR of 19.7% between 2011 and 2016 in terms of tourist arrivals.

Tamil Nadu is also one of the leading medical tourism and wellness tourism destinations in India. The state holds the distinction of being home to 5 UNESCO Heritage sites, highest for any state in India.

49

Urbanisation Rate

Females/ 1000 Males
1088

Female/Male Ratio

Male/Female Ratio

Demographics

68% of Tamil Nadu's population is in the working age group of 15-59 years.

Tamil Nadu, the 6th most populated state, is home to about 6% of the country's total population. The state's population is 72.2 mn. The state has the third highest sex ratio amongst all states in India.

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Data On Map

MAJOR INVESTORS

Updates From Tamil Nadu