Tamil Nadu Trade and Commerce | Tamil Nadu State PSC (TNPSC): Preparation - TNPSC (Tamil Nadu) PDF Download

Introduction

Tamil Nadu, one of the prominent states in India, has a thriving economy with diverse sectors contributing to its growth. This overview highlights key aspects of Tamil Nadu's trade and commerce, including its economic performance, investment inflows, major industries, and future plans.

• Tamil Nadu's GSDP has grown at an annual rate of 11.68% from 2004-05 to 2015-16.
• By 2015-16, the GSDP reached USD 175.33 billion.
• The per capita GSDP is USD 2430.54, significantly higher than the national average of USD 1389.6.

Foreign Direct Investment (FDI)

• Cumulative FDI inflows from April 2002 to March 2016 totaled USD 21.54 billion.
• There was an 18.6% growth in FDI from 2014-15 to 2015-16.
• In 2015-16, Tamil Nadu was the third highest state in terms of FDI inflows, with USD 4.52 billion.

Sectoral Contributions

Manufacturing

• Tamil Nadu has a diverse manufacturing sector including automobiles, engineering, pharmaceuticals, garments, textiles, leather, chemicals, and pesticides.
• Chennai, known as the "Detroit of India," is a major auto production hub.
• The state ranks first in the number of IT factories and industrial workers.

Information Technology (IT)

• Tamil Nadu leads in IT exports, growing from USD 7.1 billion in 2007-08 to USD 13.4 billion in 2014-15, with a 9.5% annual growth rate.
• Chennai is a key financial center with major Indian and foreign banks, and the World Bank's back office is located there.

Tourism

• Tamil Nadu is a leading tourist destination, ranking third in domestic and second in foreign tourist arrivals.
• The state plans to invest USD 2.1 billion in tourism to boost foreign tourist arrivals to 15 million by 2023.

Infrastructure and Human Resources

Infrastructure

• The state boasts excellent road and rail networks, three major ports, 23 minor ports, and 7 airports.
• Tamil Nadu plans to develop two industrial corridors: Chennai-Bengaluru and Madurai-Tuticorin.
• Under Vision 2023, the state aims to increase infrastructure investment to 11.5% of GSDP by 2019.

Human Resources

• Tamil Nadu has 59 universities, 40 medical colleges, 517 engineering colleges, 447 polytechnic institutes, and 20 dental colleges.
• The state has a highly skilled, disciplined, and English-speaking workforce.

Vision 2023

• Tamil Nadu aims to attract investments totaling USD 248.84 billion between 2012 and 2023, focusing on energy and transportation sectors.

Agricultural Production and Trade

Agricultural Output

• Tamil Nadu is a major producer of bananas, flowers, coconuts, groundnuts, coffee, tea, and sugarcane.
• Rice production increased from 5398.2 thousand tonnes in 2014-15 to 5716 thousand tonnes in 2015-16.

Exports

• Tamil Nadu exports a wide range of goods including automobiles, auto components, engineering products, textiles, granite, spices, and leather.
• Major export hubs include Tirupur and Erode for knitwear.
• In 2014-15, exports totaled USD 27.9 billion.

Key Industries

• Tamil Nadu as the Yarn Bowl: Tamil Nadu is recognized as the "Yarn Bowl" of India, contributing to 41% of the country's cotton yarn production.
• Coimbatore - The Manchester of South India: Coimbatore is often referred to as the "Manchester of South India" due to its prominence in textile production.
• Government Allocation for Sarees and Dhoti Scheme: In the 2016-17 interim budget, the government allocated USD 75.64 million to a scheme aimed at providing sarees and dhotis to the people, with the goal of boosting trade and employment in the textile sector.
• Online Marketing by Tamil Nadu Handicrafts Development Corporation: To enhance the global presence of their products, the Tamil Nadu Handicrafts Development Corporation and Complex introduced online marketing initiatives.
• Subsidy for Khadi and Village Industries: The Khadi and Village Industries Board and Sarvodaya Sangrams were provided with a rebate subsidy amounting to USD 2.82 million.

Automotive Industry

• Chennai - The Detroit of India: Chennai is known as the "Detroit of India" due to its extensive automobile production and infrastructure.
• Automobile Manufacturing Capacity (2014-15): In 2014-15, Tamil Nadu had an automobile manufacturing capacity of 3.55 million units.
• Future Capacity Expansion Plans: The Tamil Nadu government planned to increase this manufacturing capacity to 5.8 million units by 2020.
• Automobile Export Share (2014): In the financial year 2014, Tamil Nadu contributed 21.20% to India's total automobile exports.
• Domestic Production and Sales Share: The state accounted for 15.8% of India's domestic automobile production and 14.9% of domestic sales in the sector.
• Automotive Finance and Segment Shares: Tamil Nadu held a 28% share in the Indian automotive finance industry, 19% in the truck segment, and 18% in the passenger car and two-wheeler segment.
• Production Capacity for Cars and Commercial Vehicles: The state had the capacity to produce 1.35 million cars and 0.39 million commercial vehicles annually.
• Strong Industrial Presence: The strong industrial base in Tamil Nadu is attributed to the availability of skilled manpower and strong engineering capabilities.
• Tyre Manufacturing Leadership: Tamil Nadu was one of the largest tyre manufacturers in India, accounting for 40% of the country's tyre production in 2015-16.

Engineering

• Diverse Engineering Industry in Tamil Nadu: The state has a robust engineering industry that produces a wide range of products, including automobiles, bicycles, castings, textile machines, electrical and non-electrical machinery, pumps, transportation equipment, and engineering ancillary industries.
• Production of General and Special Purpose Machinery (2014-15): In 2014-15, Tamil Nadu ranked second in the production of general-purpose machinery, accounting for 18% of India's total output, and 11% in the production of special-purpose machinery.
• Growth in Engineering Exports: The state's engineering exports grew from USD 4.7 million in 2009-10 to USD 5.3 billion in 2014-15.
• Coimbatore as a Textile Machinery Hub: Coimbatore is a key hub for textile machinery production in India and contributes 21% to the country's manufacture of castings.
• Agriculture and Domestic Pumps Production: Coimbatore also accounted for 60% of the total production of agriculture and domestic pumps in India during the same period.
• Aerospace Park Initiative (2016-17): In the 2016-17 budget, the Tamil Nadu government approved the establishment of an Aerospace Park on approximately 250 acres in the SIPCOT Industrial Park. This park will focus on aerospace engineering, the production and maintenance of aerospace components, and facilities for avionics repair and overhauling.

IT and ITeS

• Tamil Nadu as an Affordable IT Investment Hub: Tamil Nadu is known as a cost-effective destination for IT investments.
• IT Parks in Tamil Nadu: The state has 22 approved IT parks, with Tidel Park in Chennai being the largest IT facility in India.
• Growth in IT Exports: Tamil Nadu's IT exports grew from USD 7.1 billion in 2007-08 to USD 14.51 billion in 2015-16, achieving a compound annual growth rate (CAGR) of 9.3%.
• Government Focus on IT Infrastructure: The government is actively developing strong IT infrastructure to support the growth of both hardware and software industries.
• Integrated IT Infrastructure: Tamil Nadu is one of the few states in India with an integrated IT infrastructure that includes a state data centre.

Banking and Financial Services

• Chennai as a Financial Hub: Chennai is a major financial center in Southern India, hosting a strong presence of major Indian financial institutions and foreign banks.
• Credit-Deposit Ratio (March 2015): As of March 2015, banks in Tamil Nadu had a credit-deposit ratio of 119.5%, significantly higher than the national average of 77.5% during the same period.
• Number of Bank Branches: The state has approximately 11,210 public sector bank branches and 7,546 private sector bank branches.

Drugs and Pharmaceuticals

• Tamil Nadu's Pharmaceutical Manufacturing Rank: Tamil Nadu is the fifth-largest pharmaceutical manufacturing state in India, contributing over 10% to the country's total pharmaceutical production.
• Key Facilities in the State: The state has significant facilities for the production of bulk drugs, biotechnology, and nanotechnology products.
• Government Support for the Pharmaceutical Industry: The Tamil Nadu government has identified the pharmaceutical industry as a priority sector and offers special capital incentives to promote its growth and development.

Agro and Food Processing

• Agro-Climatic Diversity in Tamil Nadu: With 7 agro-climatic zones and diverse soil types, Tamil Nadu is well-suited for producing fruits, vegetables, spices, plantation crops, flowers, medicinal, and aromatic plants.
• Fruit Production Ranking: Tamil Nadu is the third-largest fruit producer in India, with a production output of 7.27 million tons in 2015-16.
• Tamil Nadu Vision 2020: The Tamil Nadu Vision 2020 includes a proposed investment of USD 8.3 billion to enhance water resources, develop horticulture parks, agro-processing zones, cold storage, and other related facilities.
• Mega Food Parks Initiative (2015): In 2015, the state government announced plans to establish four mega food parks in Tamil Nadu.
• Leading Producer of Poultry and Dairy: Tamil Nadu is the second-largest producer of poultry and dairy products in India.
• Tea and Coffee Production: The state is also the third-largest producer of tea and coffee in the country.

Leather

• Tanning Industry Dominance: Tamil Nadu is responsible for more than 70% of the tanning done in India and, as of 2014-15, the state had around 450 tanneries.
• Chennai Leather Cluster: The Chennai leather cluster is the largest exporter of value-added leather products in India and has been recognized by the United Nations Industrial Development Organization as one of the top 10 most dynamic industrial locations globally.
• Revenue and Export Contribution: Tamil Nadu contributes 35-38% of the leather industry's revenue in India and 40-45% of the country's leather exports.
• Leather Export Value (2015): In 2015, the state's leather exports were valued at USD 4.05 million.
• Government Support for Leather Industry: The state government has established industrial estates and common effluent treatment plants for leather clusters.
• Indian International Leather Fair: Tamil Nadu hosts the Indian International Leather Fair annually in Chennai, attracting new customers to the Indian leather manufacturing industry and providing employment to approximately 2.5 million people.

Electronic Hardware

• Chennai as a Leading Electronics Hub: Chennai has become the largest electronic hardware manufacturing hub in India, with Tamil Nadu ranking first in the country in this sector, contributing about 15% of the national production.
• Growth in Electronic Hardware Output: The electronic hardware output in Tamil Nadu grew at a compound annual growth rate (CAGR) of 16.6% between 2008-09 and 2013-14.
• Government Initiatives for Investment: To attract more investment in hardware manufacturing, the state government established an expert committee with industry representatives to assess the potential and provide guidance on future strategies.
• Exports of Electronic and Electrical Goods: Exports from Chennai of electronic and electrical goods were 23,600 tonnes in 2012-13 and 5,746 tonnes in 2014-15.
• Imports of Electronic and Electrical Goods: Imports of electronic and electrical goods stood at 42,192 tonnes in 2012-13 and 28,325 tonnes in 2014-15.

Renewable Energy

• Leading Wind Energy Capacity: Tamil Nadu has the highest installed wind energy capacity in India, contributing 36% to the country's total wind power capacity.
• Wind Power Utilization: The state utilizes 22.53% of its wind power capacity, the highest utilization rate among all Indian states.

Tourism

• Tourism Growth: Tamil Nadu is a popular tourist destination for both domestic and international visitors. The tourism industry grew at a compound annual growth rate (CAGR) of 33.3% from 2011 to 2014 in terms of tourist arrivals.
• Tamil Nadu Vision 2020: The Tamil Nadu Vision 2020 plan includes an investment of USD 2.1 billion in the tourism sector, with the goal of increasing foreign tourist arrivals from 3.6 million in 2012 to 15 million by 2023.
• Medical and Wellness Tourism: Tamil Nadu is recognized as one of India's leading destinations for medical and wellness tourism.
• Single Window Clearance for Trade: To boost trade and commerce, the Tamil Nadu government has implemented a single window clearance mechanism.
• Investment Attraction: The single window clearance system has successfully attracted additional investments totaling USD 1.56 billion across 42 projects.

Government Policies and Initiatives

Key Policies

• Tamil Nadu's various policies include the Industrial Policy 2014, IT Policy 2014/15, Micro, Small and Medium Industrial Policy 2014-15, and others aimed at boosting trade and commerce.

Single Window Clearance

• The state government has implemented a single window clearance mechanism to attract additional investments, contributing USD 1.56 billion to 42 projects.