Introduction to Tamil Nadu economy

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Introduction to Tamil Nadu economy

Tamil Nadu is the southernmost state of Indian peninsula.It Borders with (Union Territory of) Pondicherry, Karnataka, Kerala and Andhra Pradesh. Biggest part of Tamilnadu  make boundary with Bay of Bengal, Gulf of Mannar and Palk Strait in south and most part in Indian ocean. Tamilnadu is 11th largest state by  area, 6th largest state by Population. It is also second largest economy after Maharashtra with Dollar 220 billion state domestic product. Per capita GDP of Tamil Nadu was $2,200(- Rs.1,43,547 at current prices (2015 – 16) ) in the year 2014–15, the third highest in India.The state’s HDI is second among large states and socio – Economic Development status is much higher than the national Average. With a population of 72 million, of which 80 per cent are literate, Tamil Nadu is an innovation – based economy with a strong performance in manufacturing and Services.

Over 49% of the state is urbanized, accounting for 9.6% of the urban population in the country.   Services  contribute to 45% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 21%. Government is the major investor in the state with 52% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. It has been ranked as the most economically free state in India by the Economic Freedom Rankings for the States of India 2014-15.Gross state domestic product (GSDP) of Tamil Nadu grew at a compound annual Growth rate (CAGR) of 12.31 per cent between 2004-05 and 2015-16, reaching US$ 175.33 billion in 2014-15. Even after the  effects of drought and demonetisation during the previous financial year of 2016-17,Tmilnadu clocked a growth rate of 7.94%, about one Percentage point less than that of the previous year. Political instability followed by the death of former Chief Minister Jayalalithaa could also have played a dampener.

 

Economy of Tamil Nadu
Statistics
Gross domestic product

(GDP)

Growth Rate            14.86 %

₹13.39 lakh crore (US$210 billion) (2016-17)
GDP rank in IndiaSecond
GDP per capita₹143,547 (US$2,200) (2015-16)
GDP per capita rank3rd
GDP by sectorAgriculture : 21%

Industry: 34%

Services: 45% (2014-15)

 

Gross state domestic product(GSDP)  of Tamil Nadu at market prices

YearGross state domestic product

( IN CRORES INDIAN RUPEES)

2015976703
20202183000(estimated)

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 SNAPSHOT FOR STATES ECONOMIC Environment:

  1. Highly industrialized with greater level of Urbanization.
  2. Among the states with highest FDI.
  3. Rich labour -pool with low cost of labour.
  4. Facilitating Infrastructure-2/”>INFRASTRUCTURE.
  5. Good living standard and low crime rate.
  6. Stable political environment.

 

Tamil Nadu has a well-developed infrastructure with an excellent road and rail Network, three major Ports, 23 minor ports, and seven Airports across the state providing excellent connectivity. As of June 2016, Tamil Nadu had a total installed power generation capacity of 26.25Gigawatt (GW).

 

Tamil Nadu ranked  second as the most economically competitive Indian states in 2016, based on selective criteria – macroeconomic stability, financial, business and manpower conditions, Quality Of Life, Infrastructure Development and government factor.  It is one of the three most preferred states for business investments and the state ranked second behind Maharashtra in GDP. Foreign investments attracted during the last five years is double that of the foreign investments from 2000 to 2011.

Education sector:

The Gross Enrolment Ratio in higher education at 42 percent is the highest in the country. The State’s net enrolment rate is at 99.85% and 99.11% at the primary and upper primary levels. To sustain growth the state has initiated many innovative flagship programmes Like-  Distribution of laptops ;the special cash incentive of Rs.5000 per child to reduce dropouts at secondary level.

AGRICULTURE:

Agriculture is the primary occupation of about seventy percent of the rural Population Of Tamil Nadu. In 2008 Tamilnadu was second largest producer  of rice. Total cultivated area was  5.6 million hectare 2009-10. Cauvery Delta is known as rice bowl of Tamilnadu. Tamil Nadu accounts for 10% of fruits and 6% of  vegetables production of India. Annual food grain production of  fruit in 2007-8 was 100.3 million metric ton(mmt).

Tamil Nadu is the largest producer of turmeric, banana, flowersand  tapioca. Second largest producer of mango, natural rubber, coconutand  groundnut. Third largest producer of coffee,  teaand sugar cane. Tamil Nadu is also leader in Livestock Poultry and fish production.Tamilnadu accounts for 17.7% of total poultry production in India.

With change in science and technology, agricultural practices in Tamilnadu have undergone radical improvement since independence. The change is visible not only in agricultural practices but also in the type of crop grown. In the recent few years secondary and tertiary sectors have also grown in great proportion, thanks to the New Economic Policy of the Indian government.

The main Food Crops that are grown in Tamilnadu are Rice, pulses and oil seeds while the important commercial crops of the state include sugarcane, tea, rubber, Cotton, cashew and coconut. Multiple Cropping, use of new and better varieties of rice, sugar, cotton, and millet coupled with the use of chemical Fertilizers have tremendously increased the agricultural output of the state. Tamil Nadu has a 1000 km long coastline with equatorial Climate, permitting year round fishery and farming.

 

INDUSTRIES:    

At present, Tamil Nadu is one of the most industrialized states in India. Many factors have combined together to make Tamil Nadu a leading industrial stte. The state has a well-developed network of roads, rail, air and major ports at Chennai and Tuticorin. Cotton ginning, spinning and weaving are the traditional industries of Tamil Nadu. Other important and heavy industries of the state are automobiles, diesel engines, motorcycles, sugar, fertilizers, cement, agricultural implements, iron and steel, chemicals, transformers and paper. Everything from railway coaches, automobiles, tractors, battle-tanks, motorbikes and heavy vehicles are manufactured in Tamil Nadu. The rail coach factory at Perambur is one of the largest in Asia while the heavy vehicles factory, which produces tanks, is located at Avadi. The Chennai seaport is one of the most important ports in India. Tamil Nadu is rich in metals and Minerals like limestone, gypsum, bauxite, salt, Mica, quartz, magnetite, lignite and iron Ore.

HEAVY INDUSTRIES AND ENGINEERING:

Many heavy engineering and manufacturing-based industries are located in and around Chennai, which is nicknamed as the “The Detroit of Asia”. Global auto giants like Hyundai, Ford, BMW, Caterpillar and Mitsubishi as well as domestic heavyweights like MRF, Ashok Leyland, TI cycles of India, Mahindra & Mahindra, Royal Enfield, TVS and TAFE Tractors have their manufacturing units around Chennai.  Tamil Nadu has network of 113 industrial parks and estates offering necessary infrastructure for Development Of Industries. In heavy industries and Engineering Coimbatore is also referred to as the pump city as its supplies to requirement of motor and pumps.

 

HANDICRAFT:

The traditional handicrafts industry also flourishes in Tamil Nadu. Notable among them are handloom silk, leatherwork, Metal icons, kalamkari (hand-painted fabric, using natural dyes), brass, copper wares, bronze, palm leaf, carved wood and cane articles. Tamil Nadu is an important exporter of coffee, spices, yarn, tea, tobacco, handicrafts, engineering goods and granite.

LEATHER AND TEXTILE:

Textile and Leather is one of leading sector  and the state house for country’s largest spinning industry of about  80% of total installed capacity of India. According to Tamilnadu Government the textile industry in Tamilnadu account for 17% of total invested capital in all industries. Coimbatore is called Manchester of South India due to its cotton production and textile industries. The estate account for 70% of leather tanning capacity in India and for 38% leather , footwear and components production.

 

 

Key Sectors:

  • Accounting for about 34.35 per cent share in the overall spun yarn production of the country during 2015-16, spun yarn production in Tamil Nadu stood at 0.97 million kg, by the end of September 2015.
  • Tamil Nadu has 21.20 per cent share in overall automobile exports from India. The state accounted for a 15.80 per cent share in domestic production and 14.90 per cent share in domestic sales of the automobile sector in the country.
  • The Government of Tamil Nadu announced plans to invest US$ 607 million over next two years for the development of heavy engineering sector of the state.
  • Tamil Nadu had 16 operational SEZs for IT/ITeS as of July 2016. Tamil Nadu has about 350,000 people directly employed in IT and ITeS companies, while 750,000 through indirect employments. The number of registered IT units in the state increased from 1,114 in 2004-05 to 1,780 in 2014-15.
  • As of 2015, cement production in the state was 30 million tonnes, whereas capacity utilisation rate was at 61 per cent. The production of ready-mix concrete is a major activity of the cement industry in the state.
  • During 2015-16, financial assistance of US$ 7.94 thousand was provided to the entrepreneurs under the plan scheme for technological up-gradation, establishment and modernization of Food Processing industries.
  • The Government of Tamil Nadu has set up industrial estates and common effluent treatment Plants for the leather cluster.
  • Tamil Nadu plans to add 5,000 MW capacity in the wind power by the end of 2017. Global Wind Energy Council is also working to assess the potential of wind energy in India with special emphasis on Tamil Nadu.
  • During 2015-16, the work on the project of “Infrastructure Development Investment Programme for Tourism”, which has been taken up at a cost of US$ 20.62 million, was under process.

 

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Tamil Nadu is one of the most industrialized states in India. It has a strong manufacturing sector, which is based on textiles, automobiles, and electronics. The state also has a significant agricultural sector, which produces rice, sugarcane, and cotton. Tamil Nadu is a major tourist destination, and its economy is also supported by Remittances from Tamils living abroad.

The history of the Tamil Nadu economy can be traced back to the ancient Chola dynasty, which ruled over much of southern India from the 9th to the 13th centuries. Cholas/”>The Cholas were a powerful and prosperous empire, and they built a number of important temples and monuments in Tamil Nadu. The state’s economy continued to grow during the Vijayanagara Empire (1336-1646), which was another powerful Hindu empire that ruled over much of southern India.

After the decline of the Vijayanagara Empire, Tamil Nadu was ruled by a number of smaller kingdoms. The state’s economy suffered during this period, as there was a lot of political instability. However, the economy began to recover in the 18th century, when the British East India Company began to trade with Tamil Nadu. The British built a number of factories and mills in the state, and this helped to boost the economy.

After India gained independence from Britain in 1947, Tamil Nadu became a state in the Indian Union. The state’s economy continued to grow in the post-independence period, and it became one of the most industrialized states in India. The state’s economy is currently the third largest in India, after Maharashtra and Gujarat.

The major industries in Tamil Nadu are textiles, automobiles, electronics, and pharmaceuticals. The state is also a major producer of rice, sugarcane, and cotton. Tamil Nadu is a major tourist destination, and its economy is also supported by remittances from Tamils living abroad.

The economic development of Tamil Nadu has been impressive in recent years. The state’s economy has grown at an average rate of 8% per year since 2000. This growth has been driven by the expansion of the manufacturing sector, as well as the growth of the services sector. The state’s government has also played a key role in promoting economic development, by investing in infrastructure and education.

Tamil Nadu faces a number of challenges, however. The state’s infrastructure is in need of improvement, and the education system is not as good as it could be. The state also has a high rate of POVERTY, and Unemployment is a problem. Despite these challenges, the future of the Tamil Nadu economy looks bright. The state has a number of strengths, including a large and skilled workforce, a strong manufacturing sector, and a growing services sector. With the right policies in place, Tamil Nadu can continue to grow and prosper in the years to come.

One of the biggest challenges facing the Tamil Nadu economy is the lack of infrastructure. The state’s roads, bridges, and airports are in need of repair and expansion. This lack of infrastructure is a major obstacle to economic growth, as it makes it difficult for businesses to operate and for people to get around.

Another challenge facing the Tamil Nadu economy is the high rate of poverty. According to the World Bank, over 10% of the population of Tamil Nadu lives below the Poverty Line. This means that they are unable to meet their basic needs, such as food, clothing, and shelter. The high rate of poverty is a major obstacle to economic development, as it limits the purchasing power of the population.

The Tamil Nadu government is aware of the challenges facing the state’s economy, and it has taken steps to address them. The government has invested in infrastructure, such as roads, bridges, and airports. It has also implemented programs to reduce poverty, such as providing food subsidies and job training.

The future of the Tamil Nadu economy looks bright. The state has a number of strengths, including a large and skilled workforce, a strong manufacturing sector, and a growing services sector. With the right policies in place, Tamil Nadu can continue to grow and prosper in the years to come.

What is the economy of Tamil Nadu like?

Tamil Nadu is one of the most developed states in India, with a strong industrial base and a diversified economy. The state is a major producer of automobiles, textiles, and electronics, and it also has a significant agricultural sector. Tamil Nadu is home to a number of major companies, including Tata Motors, TVS Motor Company, and HCL Technologies. The state’s economy is growing at a healthy pace, and it is expected to continue to grow in the coming years.

What are the main industries in Tamil Nadu?

The main industries in Tamil Nadu are automobile manufacturing, textiles, electronics, and agriculture. The state is a major producer of automobiles, with companies such as Tata Motors and TVS Motor Company having major manufacturing plants in the state. Tamil Nadu is also a major producer of textiles, with companies such as HCL Technologies and Infosys having major operations in the state. The state’s agricultural sector is also significant, with the state producing a variety of crops, including rice, sugarcane, and cotton.

What are the main exports of Tamil Nadu?

The main exports of Tamil Nadu are automobiles, textiles, electronics, and food products. The state is a major exporter of automobiles, with companies such as Tata Motors and TVS Motor Company exporting a significant number of vehicles each year. Tamil Nadu is also a major exporter of textiles, with companies such as HCL Technologies and Infosys exporting a significant amount of Software each year. The state’s agricultural sector is also significant, with the state exporting a variety of crops, including rice, sugarcane, and cotton.

What are the main challenges facing the economy of Tamil Nadu?

The main challenges facing the economy of Tamil Nadu are infrastructure, education, and healthcare. The state’s infrastructure is in need of significant investment, with the state’s roads, bridges, and airports in need of repair or upgrade. The state’s education system is also in need of improvement, with the state’s schools and colleges struggling to provide quality education to its students. The state’s healthcare system is also in need of improvement, with the state’s hospitals and clinics struggling to provide quality healthcare to its citizens.

What are the opportunities for investment in the economy of Tamil Nadu?

The main opportunities for investment in the economy of Tamil Nadu are in the areas of infrastructure, education, and healthcare. The state’s infrastructure is in need of significant investment, with the state’s roads, bridges, and airports in need of repair or upgrade. The state’s education system is also in need of improvement, with the state’s schools and colleges struggling to provide quality education to its students. The state’s healthcare system is also in need of improvement, with the state’s hospitals and clinics struggling to provide quality healthcare to its citizens.

What are the future prospects for the economy of Tamil Nadu?

The future prospects for the economy of Tamil Nadu are positive. The state is expected to continue to grow at a healthy pace in the coming years, driven by its strong industrial base and diversified economy. The state is also expected to benefit from the implementation of the Goods and Services Tax (GST), which is expected to boost trade and investment in the state.

  1. Tamil Nadu is the ____ most populous state in India.
    (A) 1st
    (B) 2nd
    (C) 3rd
    (D) 4th

  2. The capital of Tamil Nadu is ____.
    (A) Chennai
    (B) Bangalore
    (C) Hyderabad
    (D) Kolkata

  3. The Official Language of Tamil Nadu is ____.
    (A) Tamil
    (B) Hindi
    (C) English
    (D) Telugu

  4. The major industries in Tamil Nadu are ____.
    (A) Automobile, IT, and textiles
    (B) Agriculture, IT, and tourism
    (C) Automobile, textiles, and tourism
    (D) Agriculture, textiles, and mining

  5. The GDP of Tamil Nadu is ____.
    (A) $1.5 trillion
    (B) $2.5 trillion
    (C) $3.5 trillion
    (D) $4.5 trillion

  6. The per capita income of Tamil Nadu is ____.
    (A) $10,000
    (B) $15,000
    (C) $20,000
    (D) $25,000

  7. The Literacy rate in Tamil Nadu is ____.
    (A) 80%
    (B) 90%
    (C) 100%
    (D) 110%

  8. The life expectancy in Tamil Nadu is ____.
    (A) 70 years
    (B) 75 years
    (C) 80 years
    (D) 85 years

  9. The infant mortality rate in Tamil Nadu is ____.
    (A) 20 per 1,000 live births
    (B) 30 per 1,000 live births
    (C) 40 per 1,000 live births
    (D) 50 per 1,000 live births

  10. The poverty rate in Tamil Nadu is ____.
    (A) 10%
    (B) 20%
    (C) 30%
    (D) 40%

  11. The unemployment rate in Tamil Nadu is ____.
    (A) 5%
    (B) 6%
    (C) 7%
    (D) 8%

  12. The main exports of Tamil Nadu are ____.
    (A) Automobiles, textiles, and software
    (B) Gems and jewelry, leather goods, and marine products
    (C) Rice, coffee, and tea
    (D) Iron ore, coal, and manganese

  13. The main imports of Tamil Nadu are ____.
    (A) Crude oil, petroleum products, and gold
    (B) Machinery, chemicals, and electronics
    (C) Food grains, fertilizers, and edible oils
    (D) Iron ore, coal, and manganese

  14. The main trading partners of Tamil Nadu are ____.
    (A) The United States, the European Union, and China
    (B) The United States, Japan, and South Korea
    (C) The United Arab Emirates, Saudi Arabia, and Kuwait
    (D) Singapore, Malaysia, and Indonesia

  15. The main infrastructure projects in Tamil Nadu are ____.
    (A) The Chennai-Bangalore Industrial Corridor, the Madurai-Tirunelveli Industrial Corridor, and the Chennai Metro Rail
    (B) The Chennai-Bangalore Expressway, the Madurai-Tirunelveli Expressway, and the Chennai Metro Rail
    (C) The Chennai-Bangalore High Speed Rail, the Madurai-Tirunelveli High Speed Rail, and the Chennai Metro Rail
    (D) The Chennai-Bangalore Submarine Cable, the Madurai-Tirunelveli Submarine Cable, and the Chennai Metro Rail

  16. The main challenges facing the Tamil Nadu economy are ____.
    (A) High levels of Poverty and Unemployment, infrastructure bottlenecks, and inadequate investment in education and healthcare
    (B) High levels of Corruption, political instability, and law and order problems
    (C) Natural disasters, such as floods and droughts, and Climate Change
    (D) All of the above

  17. The main opportunities for the Tamil Nadu economy are ____.
    (A) A large and growing population, a young workforce, and a strategic location
    (B) A booming IT sector, a strong manufacturing base, and a vibrant agricultural sector
    (C) A rapidly growing tourism industry, a thriving film industry, and a vibrant cultural scene
    (D) All of the above

  18. The future of the Tamil Nadu economy looks ____.
    (A) Bright, with the potential to become one of the