The ‘openness’ of the economy is also reflected in the movement of goods and services both into and out of Pondicherry, particularly to the neighbouring states. In the past, the low sales tax rates in the Union Territory led to the diversion of goods to and from Pondicherry. However, the imposition of the uniform floor rates will reduce the possibility of such diversion. The impact of this policy will be felt not only on government finances but may be to some extent on economic activity as a whole in the Union Territory.

Agriculture

Nearly 45 per cent of the population of the Union Territory is engaged in agriculture and allied pursuits. Ninety per cent of the cultivated area is irrigated. Paddy is the predominant crop followed by pulses. Mahe region contributes to the plantation wealth of this territory. Crops like coconuts, arcanuts, condiments and spices are grown here. Pulses, groundnut and chillies are the other crops grown in Yanam. During 200-01, 27,972 hectares had been cultivated under rice.

Industry

With an investment of over Rs. 1,429 crore, 6.607 industries are providing employment to 77,341 persons as on 31 March 2001. The number of industrial unites regestered up to May 2001 is 6,634 units. The total value of production from these industrial units works out to Rs. 9,141.34 core. The industrial units are manufacturing items such as textiles, computers and peripherals, UPS and other electronic products, consumber durables, fast moving consumer goods, pharmaceuticals, leather goods, earth moving equipments, sugar, yarn, spirit, beer, potassium chlorate, rice-bran oil, auto parts, disposable syringes, roofing sheets, washing machines, bio-polymers, steel tubes, LPG cylinders, etc. The export value of various products manufactured by the industries was Rs.307.31 crore during 1999-2000.

Irrigation

Irrigation in Pondicherry is mainly through tanks and tube wells. There are 84 tanks with an ayacut of 6,456 hectare of which tow are comparatively bigger (Oustery and Bahour). In addition, there were 84 surface water storage irrigation tanks with a total command area of 6,765 ha, and with a water holding capacity of 46.4 mcm. There were also 140 small tanks for harvesting surface water. The number of bore well has increased to about 7,000 from nearly 1,000 in the early sixties. Nearly 90per cent of the net cropped area is now under irrigation. During 2001-02, 13 tanks have been identified for rehabilitation and community organising works have been completed in 12 tanks.

Power

The power requirements of Pondicherry are met by availing share from the Central generating stations and by purchasing power from neighbouring State Electricity Boards. A combined Cycle Gas Power Plant of 32.5 MW at Karaikal is under operation since January 2000/ The T. R.Pattinam 110/11KV Substation associated with Gas Power Plant was commissioned in July 1997. One 110/22 KV sub-station at Thethampakkam was commissioned on 24 January 2001. A 230 KV line from Neyveli to Bahour was commissioned in June 2001 which is a second source of supply to the 230/110 KV Bahour Auto Sub Station.