Economy of Tamil Nadu

Software and Business processes

The software industry has recently provided prosperity and jobs in various major cities of Tamil Nadu, especially Chennai and surrounding areas. Medical transliteration, offshore development, contracting firms, call centers and multinational branches are some of the incarnations of this software technology. The government provides various incentives to these companies. The people of Tamil Nadu and other southern states are a coveted human asset for firms all over the world.

Education in Tamil Nadu is of good quality. Various Engineering and Medical colleges have been set up all over the state. Private firms offer coaching in new technologies so that job seekers are armed with the latest skills.

Good medical services are available in the state along with good tourist attractions. This has recently spurred a new wave of medical tourism. Costs and waiting periods in developed world are very high for some of the major medical and dental procedures. As consumers are becoming aware of the high quality of these procedures in India, insurance has started covering them and hence the flow of these medical tourists has increased in Tamil Nadu and elsewhere.


Tamil Nadu as part of the Madras Presidency was an agricultural economy. However, the separation of various states along economically unviable linguistic lines has created a strain on Tamil Nadu's agricultural setup. Paddy cultivations have been dropping continuously over the last few years as it requires a reliable and substantial water consumption. Tamil Nadu's monsoon pattern is different from that of the rest of the country and has been more unpredictable compared to the regular monsoon pattern. Legal settlements involving water have caused considerable friction and economic disruptions in Tamil Nadu and it's neighboring states. Farmers have taken the most sensible way out and increasingly do not depend on paddy as the primary crop. Farming and rural development continue to remain the top challenges for Tamil Nadu.


Manufacturing is the primary industrial activity in Tamil Nadu. Textiles, engineering, tanneries, tobacco and beedis, plantations, and fireworks are some of the major industries in Tamil Nadu. While plenty is employment is available in urban areas, opportunities are mostly limited to public sector or small scale manufacturing in rural areas. This creates a movement of educated population into major cities of Tamil Nadu and other states of India. People of Tamil Nadu are sought by employers all over India and the world for their hard work and dedication. Tamil work ethic is envied and provided as an example for others to follow.


The entertainment industry comprising of the film industry is one of the major revenue generators in Tamil Nadu. Most of the political and ruling officials of Tamil Nadu have some connection to the film industry. Other revenues comprise of taxation of movement of goods in and out of the state and employment and business taxes.


Tamil Nadu is rich in natural minerals, soil fertility. It has an educated populace. However, the available resources have not been efficiently utilized in betterment of the quality of life of the source regions of these resources. This is not a problem isolated to Tamil Nadu and is prevalent in the rest of the country. It is as if the British exploitation was replaced by the political exploitation of infrastructure and natural resources. However, Tamil Nadu is one of the better infrastructure states of India. Credit goes to some of the recent Chief Ministers who have modeled the infrastructure on major American cities.



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