Tamil Nadu Industry 

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 and study ethic is envied and provided as an example for others to follow.

Car and tractor manufacturing and related automotive components makes the majority of manufacturing activities in the Chennai region and surrounding areas. One of the challenges is that most of the activities are concentrated around the Chennai area. As land costs skyrocket, there is little opportunity or incentive to expand manufacturing facilities. Also the innovation rate of the manufacturing sector is quite low and many of the companies do not have a steady growth rate. Despite these challenges, Tamil Nadu has been second in industrial output among all the states of India.

The recent manufacturing trends suggest that the access to a major Airport is as important a factor as is availability of power and good roads and tourist facilities. At the executive level, ease manufacturing and ease of monitoring and access become equal contributing factors. Innovation based mindset has to be encouraged so that Tamil Nadu does not have to compete on price and state level incentives in the long run. While the software industry is the mainstay of Tamil Nadu now, there have been relatively few innovation based approaches.

Tamil Nadu has a proven track record of being a pro-business community. It is time to leverage that advantage and create new industrial and innovation tracks throughout Tamil Nadu. Commercial and manufacturing hubs other than Chennai have to come up so that international companies do not look to other states for their expansion plans. The recent transition of Chief Minister has created some challenges and new dynamics that have caused concerns.


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