In 1968, the visionary leader and former Chief Minister of Tamil Nadu, C.N. Annadurai, visited Yale University under the prestigious Chubb Fellowship Program. During his visit, Annadurai described India as the “experiment station for democracy”. He observed that if India could reconstruct its economy with democracy as its political apparatus, it would be the ideal answer to the authoritarian models espoused by China and its Communist counterparts. He also presciently warned: ‘whatever economic progress we make, unless we control our population, we cannot drive out poverty’.
Over 50 years later, Tamil Nadu stands as a testament to the power of Annadurai’s vision. We have harnessed the tools of democracy, controlled our fertility rate and reconstructed our economy in ways that have set the State apart as a beacon of inclusive and sustainable growth in India. As the world searches for alternatives to China through the “China+1” strategy, Tamil Nadu emerges as one of the strongest contenders for global investments.
Tamil Nadu’s journey, from a predominantly agrarian and poor economy to an industrial powerhouse, has been driven by its democratic ideals and people-centric policies. Unlike authoritarian regimes that impose top-down economic models, Tamil Nadu’s development has been rooted in participatory governance, inclusive growth and equitable distribution of resources through reservations. The success of Tamil Nadu’s economic reconstruction can be attributed to a governance model that emphasises social justice, economic empowerment and a focus on the well-being of all citizens. The State’s reduction in total fertility rate (TFR) has eased the State’s poverty burden, allowing for more focused investments in education, health care, and infrastructure, which in turn have fuelled economic growth.
The New China+1 Destination
Today, Tamil Nadu is the second-largest contributor to India’s GDP, accounting for nearly 9% of the nation’s total output, despite having just 6% of the population.
The State’s per capita income is among the highest in India, reflecting the success of its inclusive development model.
In the global race to diversify supply chains away from China, Tamil Nadu is emerging as a clear frontrunner. Often referred to as the “Detroit of India,” Tamil Nadu accounts for 35% of the country’s automobile exports. The State’s automotive ecosystem is robust, housing global giants such as Hyundai, Daimler, Renault, Nissan, BMW and Stellantis, along with a strong network of suppliers and ancillary industries. We are delighted that following our recent investment promotion visit to the United States, Ford has announced that it will resume operations at its Chennai facility.
Tamil Nadu’s strength extends beyond automobiles. The State is also a leader in electronics manufacturing, contributing to 33% of India’s electronics exports, servicing global brands such as Apple, Dell, HP, Samsung and Google Pixel. The availability of skilled labour, a strong supply chain network and world-class infrastructure have positioned the State as a hub for electronics and technology-driven industries.
Tamil Nadu has been making strategic moves to attract new investments as part of the global shift in supply chains. The State government has implemented policies that focus on ease of doing business, offering incentives such as tax breaks, land at subsidised rates and a single window clearance system that streamlines the process of setting up operations. As a result, Tamil Nadu has consistently ranked among the top States in India for ease of doing business, further cementing its appeal to global investors.
Skilling, innovation, and new partnerships
Tamil Nadu’s ability to attract global investments is not just about manufacturing capacity. It is also about innovation and skilling. The state government’s recent emphasis on fostering research and development (R&D) and creating skilling partnerships with global corporations is paving the way for Tamil Nadu to become a leader in cutting-edge industries.
Our recent trip to the U.S. is a milestone in this effort. During the visit, we secured key investments, and skilling and research and development partnerships with some of the world’s leading companies, including Google, Applied Materials, Jabil, PayPal, Nokia, Microchip, Yield Engineering Systems and Trilliant Networks. These partnerships are set to bring new jobs, advanced technologies and global best practices to Tamil Nadu, making it a global hub for innovation.
Strengths of the Dravidian Model
At the heart of Tamil Nadu’s success is its unique model of governance, often referred to as the Dravidian Model. This approach lays an emphasises social justice, inclusive growth and equitable distribution of resources. It is a model that ensures that economic growth is also about improving the quality of life for all citizens.
Tamil Nadu leads India in several social indicators, from education to health care. The State has the highest Gross Enrolment Ratio (GER) in higher education at 47%, and an astounding 42% of India’s registered women workforce in factories are employed in Tamil Nadu. Programmes such as the Naan Mudhalvan, India’s largest skilling initiative, are equipping the State’s youth with the skills needed for future jobs, particularly in technology and finance.
Tamil Nadu’s commitment to diversity, equity and inclusion (DEI), making it an attractive destination for global corporations that value social responsibility, is reflected in our policies, such as the payroll subsidies we offer to investors who hire women, trans people and people with disabilities.
Tamil Nadu is also at the forefront of India’s renewable energy revolution, with 57% of its installed capacity from renewable sources. The State’s geographical advantages that include abundant wind, solar and offshore energy hotspots, have made it a leader in clean energy. We are dedicated to raising our renewable energy installed capacity to 75% and expanding green cover to 33% of the State’s total area.
Tamil Nadu presents an exceptional opportunity for investment, driven by its robust manufacturing sector, a highly skilled and adaptable workforce, inclusive governance, and a steadfast commitment to sustainability. To investors across the globe, our message is clear: go bullish on Tamil Nadu, join the bull run.
M.K. Stalin is the Chief Minister of Tamil Nadu
Published - September 27, 2024 12:16 am IST
