While the rest of the world was riding the FDI wave and was experiencing growth, Tamil Nadu was not behind since it also saw healthy growth even when the overall investment scenario in India seemed to dip a tad. In this fiscal 2023-24, Tamil Nadu rose by about $2.44 billion in FDI inflows.
In the financial year 2023-24, Tamil Nadu’s FDI inflows surged to approximately $2.44 billion, marking a remarkable 12.44% increase from the previous year’s $2.17 billion, according to the Department for Promotion of Industry and Internal Trade under the Union Ministry of Commerce and Industry.This is when the total FDI inflows into India dipped to $44.42 billion from $46.03 billion.
This has given the state much more impressive performance due to proactive policies and initiatives. According to Industries Minister T.R.B. Rajaa, land allotment improvement has also been seen because of the ease of doing business in the top-ranked Tamil Nadu. It also has a gigantic land bank, which would play crucial roles for the state.For example, another such case is the Global Investors’ Meet in January 2024.This drive for investment in Tamil Nadu also does tremendous networking at the Davos-type forums. The state’s pitches as well as sector-specific strategies make it a favoured destination for foreign capital.
Industries Secretary V. Arun Roy welcomed the 12% annual growth in FDI as a testimony of dedicated efforts of the State Government in the last few years.
“The focus was very fruitful in electronics and high-value sectors,” says Mr. Roy, further citing improvements in the ease of doing business index that has now made Tamil Nadu more investment-friendly to foreign investors.
Aided by proactive and visionary moves by the government of Tamil Nadu the investors confidence has been at an all time high. One brilliant example includes the great skill shown in the resolution of the Samsung workers’ strike, which proves that the state can handle industrial disputes with efficiency so that labour-related challenges do not remain an obstacle for the smooth carrying out of business activities. Along with the fact that the state did not let its efforts in providing a skilled workforce waver, investors are assured that Tamil Nadu will always be the preferred destination for investment.
Guidance TN, is the nodal agency for investment promotion and single-window facilitation, under the government of Tamil Nadu, has been one of the basic features of this investment-friendly environment. Mandated in the Tamil Nadu Business Facilitation Rules, Guidance TN’s indispensable role in the streamlining of processes enables business people to get businesses off the ground and running smoothly and efficiently for investors within the state.
Underpinning this workforce development strategy remains the Naan Mudhalvan scheme. Again, this point is directly aligned with education outcomes in terms of changing industry needs. This would then ensure that the graduating students gain the necessary skills in demand, thus equipping the next lot of workers to succeed in the competing job market.
At its most basic, the CM’s Breakfast Scheme has proved pivotal to a healthy enrollment and decent attendance in schools, thus providing students with a more reasonable chance of succeeding and pursuing higher studies. It is no wonder that Tamilnadu’s Gross Enrollment Ratio is higher than the national average. Thus, TamilNadu is building a strong talent pool for the future.
Under the Chief Minister M.K. Stalin, Tamil Nadu has promised to invest hugely. In the report by the DMK government, it came out that investment pledges worth $ 9.61 lakh crore can be created that can generate 30 lakh jobs. Under the leadership of M K Stalin, 45 factories were set up, and 74,000 youth have been employed. That is how the state became an electronic leader in exports, jumping from $1.66 billion in 2020-21 to an impressive $9.56 billion in 2023-24.
However, other states have given very different performances in the case of FDI inflows. Gujarat topped the lot with a whopping 54.9% increase to $7.3 billion. Telangana experienced an impressive 133% increase to $3.03 billion. Maharashtra’s FDI increased marginally to $15.12 billion. Karnataka and Delhi’s FDI declined.
Since Tamilnadu alone accounts for 5% of the total FDI in India, the contributions of the state often remain unrecorded in the large metropolitan centers where the corporate offices are located. Profit reinvestment by multinational corporations through local subsidiaries does not appear in FDI statistics, hence the need to gain a more nuanced understanding of investment dynamics.
With such policies of the state and other initiatives accompanied by leadership skills and dedication towards making things business-friendly, Tamil Nadu is very likely to continue generating a space for itself worldwide.
