CHENNAI: Tamil Nadu is in the process of drafting a new industrial policy aimed at moving the state’s manufacturing base up the value chain, with sunrise sectors, R&D and export-led growth set to complement its existing strengths in electronics, automobiles and electric vehicles.
The state is targeting a $1.5 trillion economy by 2036, with the roadmap built around one-, three-, five- and 10-year milestones rather than a straight-line growth projection, officials of the Industries, Investment Promotion and Commerce Department said.
Asked how the approach differed from the 2021 industrial policy, officials declined to draw a direct comparison, saying the new policy was being “built with people at its centre”, with a focus on sustainably increasing the state’s per capita income.
Sustainability and circular-economy practices will be “core” components of the policy, though carbon-reduction targets and timelines have not been finalised.
As part of its ease-of-doing-business push, the government has committed to a 21-day deadline for single-window clearances and is developing an investor grievance portal to provide companies with a formal channel to raise concerns.
The government is also planning to “model” industrial parks with plug-and-play facilities, to be piloted at select locations. Industrial townships offering a wider range of facilities expected by foreign investors are also being planned.
The policy will further focus on decentralised, district-level industrial hubs in a bid to take jobs closer to people and reduce migration towards Chennai. The new policy is expected to match or exceed the offerings of states such as Gujarat, Maharashtra, Karnataka, Telangana and Uttar Pradesh, which are competing for the same large manufacturing investments.
The secondary sector contributes 33.8% of Tamil Nadu’s Gross State Value Added (GSVA), with manufacturing accounting for 18.62%, according to figures cited by officials. GSVA measures the total value of goods and services produced within a specific state’s borders.
Officials said the state ranks first or second nationally in most manufacturing sectors, and the policy would seek to expand manufacturing-led exports while growing the services sector in parallel. “Every policy we make is ultimately about improving the lives of the people of Tamil Nadu. Economic growth is a means to that end – creating better jobs, higher incomes, and greater opportunities and prosperity for every family,” Industries Minister S Keerthana told TNIE.