There is a growing perception that Tamil Nadu is not open to businesses and that needs to be changed quickly, T.T. Srinivasaraghavan, managing director, Sundaram Finance Ltd., said, representing the industry view at the 181st annual general meeting of The Madras Chamber of Commerce and industry (MCCI).
He also pointed out that the projects mentioned in the Vision 2023 document have not taken off and implementing them would go a long way in improving the State’s infrastructure.
“The perception might be unfair. But the State needs to quickly change that perception. It should improve transparency and increase speed of building approvals and work on DIPP ease of doing business,” Mr. Srinivasaraghavan said.
Shilpa Prabhakar Satish, executive vice-chairperson, Industrial Guidance and Export Promotion Bureau of Tamil Nadu, said the State was working towards improving its ease of doing business rankings this year, which will have over 400 parameters.
“The State is also working on single-window online clearance. We are working on a business facilitation policy which would be made into legislation. It will indicate the time frame in which each department has to give its approval,” she said.
A draft note to this effect was waiting for Cabinet approval, Ms. Satish said. She added that the proposal also provided for deemed approval if there was a delay in granting approval.
She also said that the government had attracted ₹2,000 crore in investments this year and was on course to attract a further ₹15,000 crore.
Speaking at the event, Ram Venkataramani, president, MCCI and managing director of IP Rings Ltd., said the chamber has shared its inputs with the State on ease of doing business.
He also said the industry body was working on a report on the health of industrial estates and will give suggestions on improving them.
Mr. Srinivasaraghavan also pointed out that statistics and the ground reality were showing two different aspects of the economy.
“Interest rates are at a record low. But no one is borrowing and making investments. Commercial vehicle sales are down 40% in the first quarter. If the economy is doing well, it would have reflected in commercial vehicle sales,” he said.
Mr. Srinivasaraghavan also said that if jobs are not created, it would be a major threat to the demographic dividend, which is viewed as India’s greatest advantage.
He also said there is no incentive for being a good corporate citizen, as the industry has to deal with high compliance and regulations.
