TN’s policies to revitalise economy
The Tamil Nadu government led by M K Stalin is on a mission. Barely seven months in governance, he is making serious efforts to breathe life into the hitherto sagging state economy. He and the finance minister Palanivel Thiaga Rajan have reiterated that the target of $1 trillion by 2030 is not a pipe dream. Here are a few moves initiated by the government. The state is attempting to build a hub for the IT and fintech sectors. It recently unveiled a FinTech Policy to transform itself into a leading global destination for MNCs by 2025. It will offer incentives to firms starting operations in tier-2 and tier-3 cities.
The government has also proposed to set up new IT parks in these cities. Simultaneously, TN has also unveiled an exclusive policy to develop the state as the top destination for data centres. Many large companies are already in the process of setting up their data centres in Chennai and surrounding areas. The state will also create a pool of skilled manpower in the sector.
While attracting IT and fintech companies, TN has not lost track of its industrial growth. The exit of Ford may have temporarily dented its image, but a recent investment conclave held in Coimbatore saw keen interest from many other companies. The CM inaugurated 10 projects with a cumulative investment of `13,928 crore and laid the foundation stone for another 13. Undoubtedly, the state is positioned to capture a significant slice of the potential market India has envisioned in the next 10 years. While pushing for new projects, the government is clear about its prime target: employment generation.
Meanwhile, the economic advisory council set up by the government, which includes the likes of Nobel laureate Esther Duflo and ex-RBI governor Raghuram Rajan, has begun its ground work. Let’s hope that while revitalising the state economy, the council will also ensure that the benefits of the economic growth reach all segments of the society and help the state shrug off the long-prevalent freebie culture. Once in place, it will be a model worth emulating for other states.