Tamil Nadu, renowned as a leader in the Information Technology sector, is actively striving to catalyse economic development across the state and narrow the digital divide by establishing IT office spaces and fibernet infrastructure in remote areas.
Most of us are familiar with the state’s journey in this field, TN having set up an IT department in the late ’90s and a Tidel Park in 2000. The state stands as a pioneer in the IT and IT-enabled services (ITeS) industry, with Chennai earning the moniker of Software as a Service (SaaS) capital of India.
However, a lesser-known but equally significant development in Tamil Nadu is the state’s endeavour to distribute IT growth beyond the capital, attracting global IT firms to Tier-II and Tier-III cities and even smaller towns.
The state’s maiden mini-Tidel Park was unveiled in Villupuram last month. Spanning a built-up area of 63,000 sq.ft across five acres in Thiruchitrambalam village, Vanur taluk, the four-story edifice can accommodate around 500 IT professionals, boasting common facilities like a gym and cafeteria.
This initiative marks the inauguration of the first among seven Neo Tidel Parks announced in 2021, with the other projects coming up in Thanjavur, Salem, Vellore, Tiruppur, and Thoothukudi.
Additionally, two major Tidel Parks are on the horizon, one in Madurai and another in Tiruchy, with a combined investment of Rs 750 crore. Another significant office space is under construction in Coimbatore, with a capital expenditure exceeding Rs 1,100 crore, slated to host life science, aerospace, engineering companies, alongside IT firms. Furthermore, an Information Technology Tower has been inaugurated at Navalpattu in Tiruchy, with plans for a ‘Tech City’ in Hosur, dedicated to IT and ITeS firms and global capability centres of MNCs.
Hosur is witnessing a surge in electronics and mobility firms, rapidly evolving into a manufacturing and warehousing hub. By attracting a portion of the IT business from its neighbouring bustling city, Bengaluru, Hosur could potentially undergo a transformative economic shift, generating numerous job opportunities. The focus lies on attracting niche IT firms, emphasising design, development, and fostering startups, rather than solely focusing on low-value software development.
These endeavours are integral to Tamil Nadu's strategy of dispersing IT growth statewide, laying the foundation for foreign investments in Tier-II cities, essential for the state’s sustainable development. While several major metro cities in India have surged ahead of Tamil Nadu’s capital, they grapple with concentration issues, hindering widespread economic progress and opportunities.
This issue came to the fore during the pandemic, as workers returned to their hometowns. The advent of remote work revolutionised the employment landscape, particularly for IT jobs. Hence, diversifying tech sector jobs holds immense potential in fostering comprehensive development across sectors.
The state is embarking on another ambitious initiative – the ‘Unified Digital Infrastructure’ – envisaging a high-speed optical fiber network connecting Chennai to all districts, with a budget of Rs 400 crore. This network will facilitate telemedicine, education, agriculture extension, and other services in remote villages.
With plans to connect 12,525 villages and 380 blocks, the fibernet project aims to build digital public infrastructure, ensuring reliable high-speed internet access even in rural areas, thereby enabling the government to deliver digital services statewide.
Tamil Nadu's robust efforts extend beyond infrastructure, encompassing a new ICT policy, a draft policy on electronics hardware manufacturing, IT SEZs, a rural BPO policy, laptop distribution to students, the establishment of IT infrastructure, a Fintech Center of Excellence, startup promotion, and skill development initiatives through the ICT Academy of Tamil Nadu.
However, some cite the need for bolstering social infrastructure to strengthen the industry's growth and competitiveness with other states, alongside focusing on social infrastructure in Chennai.
Economic shift
Hosur is witnessing a surge in electronics and mobility firms, rapidly evolving into a manufacturing and warehousing hub. By attracting a portion of the IT business from its neighbouring bustling city, Bengaluru, Hosur could potentially undergo a transformative economic shift.
The most business-friendly state in india
Total IT ITeS export from Tamil Nadu, including the software exports reported by units in SEZ, are estimated at Rs 2 lakh crore for FY22–23
There are 42 operational SEZs, out of which 18 SEZs are IT/ITeS sector-specific
Elcot has been a pioneer in the creation of 8 IT Special Economic Zones (SEZs) in Chennai and in Tier-II cities of the state
Coimbatore, Madurai (two sites), Tiruchy, Salem, Tirunelveli and Hosur, spread over 1,378.16 acres of land (1,321.61 acres in SEZ and 56.55 acres in non-SEZ space) at an investment of Rs 844.57cr
Why multinational IT companies prefer TN?
Stable political climate and investor-friendly government
0.7% Peaceful labour climate & man-days lost due to labour unrest
Infrastructure development of Chennai rated better than other states/cities by Independent evaluation studies of Ford, World Bank, BMW, Foxconn, Stanchart , Nokia , Flextronics, etc
FDI magazine of Financial Times rates Tamil Nadu as the 'Asian region of the Future' with maximum FDI potential
First in skilled man power availability in India
Lowest cost of manpower and living
A PIONEER
Tamil Nadu’s Pioneering Efforts in the Information Technology Sector:
AI Mission
The proposed ‘Tamil Nadu Artificial Intelligence Mission’ aims to develop guidelines for leveraging AI across various sectors and establish clear protocols for its utilisation.
Quantum Computers
Tamil Nadu is procuring a quantum computer from Finland to facilitate local startups, as part of the state’s endeavour to foster research and innovation in quantum computing under the National Quantum Mission.
E-Governance
The state leads in enhancing e-governance by modernising government offices and increasing the accessibility of online government services.
Upgradation of the State Data Centre with cloud computing infrastructure and disaster data recovery facilities is under way.
One of the first states to draft policies for the IT & ITeS sector
11% share of total IT Investment in India
3rd in software exports in the country