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Micro, Small and Medium Enterprises Department
குறு, சிறு மற்றும் நடுத்தரத் தொழில் நிறுவனங்கள் துறை

Why Tamil Nadu

Tamil Nadu, located on the south-eastern coast of India, is a significant contributor to the Indian economy and has witnessed spectacular economic growth for decades. It is the second largest economy in India and contributes 8.8% to the national GDP. The GDP of the state was valued at USD 265 billion at the end of 2019-20.It has a diversified manufacturing and servicing sector and is a leader in several sectors such as automobiles, pharmaceuticals textiles, leather products, chemicals, engineering products and IT &ITES. Chennai, the capital of Tamil Nadu is known as the SaaS capital of India.

Tamil Nadu has become the economic powerhouse and an ideal investment destination due to its strategic location, conducive business environment, state-of-the-art infrastructure, proactive governance and industrial ecosystem. It has also been one of the most successful states in attracting FDI due to solid macro economic fundamentals, strong industrial base and abundant skilled manpower. There are several renowned international schools and universities by which more than 10 lakh graduates join the workforce annually. It is home to 12 of the top 50 cities in ease of living index ranking and is also ranked 1 in good governance index.

Strengths and Statistics

  • Economy: 2nd  largest economy in India, 8.8% of National GDP
  • GDP: USD 265 Billion at the end of 2019-20
  • Population: 70 million, 6% share in India’s population
  • Area: 10th  largest state(130,000 Sq.km) with a 15% share of India’s coastline
  • MSMEs: Over 23.6 lakh registered MSMEs with an investment of Rs.2.73 lakh crore
  • FDI: Cumulative FDI investment of USD 32.20 Billion from April 2000
  • Literacy: 51.8 Million Literates (80.09% Literacy Rate)
  • Factories: Highest number of factories, 16% of India’s Factories with 10% of India’s Industrial output
  • 3rd  largest exporting state ($30 B in 2019-20)
  • Highest number of operational SEZs
  • 31 MW of Power Generation with 15 MW renewable energy
  • 4 Large Ports and multiple smaller ports
  • 4 International airports with International air cargo terminals at Chennai, Coimbatore, Trichy
  • 253,510 km of roadways in the state
  • Easy connectivity to major international trans-shipment hubs such as Colombo, Singapore, Malaysia
  • Close to major manufacturing ecosystems such as China, Korea, Taiwan, Japan & ASEAN