Exports

Exports of industrial products have also picked up considerably. Whereas in 1989 exports were only Rs.28 crore, exports (mostly of manufactured goods) in 1997-98 were to the tune of Rs.320 crore. As Table below illustrates, leather, rubber and plastics accounted for Rs.82 crore, chemical and chemical products for Rs.78 crore, textile and ready made garments for Rs.59 crore, polished granites and polished diamonds for Rs.48 crore, metal products for Rs.33 crore, food products for Rs.15 crore, paper and printing products for Rs.3 crore and computer software for Rs.2 crore.

Industrial Performance of Factory Sector

It is necessary, however, to examine the industrial scenario in greater detail. The most comprehensive data source for industries is the Annual Survey of Industries (ASI). The ASI gives details pertaining to all major industries, 2-digit as well as 3-digit. The analysis undertaken here pertains, however, only to the 2-digit level as 3-digit disaggregated data is not available for Pondicherry. ASI data only covers those industries which are covered under the Factories Act and not all at that. The factories covered are mostly the large and medium scale industries plus a small number of small scale industries. Thus, this analysis will not cover many small-scale industries especially. Moreover, the number of industries covered in the most recent (1996-97) ASI is only 348 units.

Rapid Growth of the Industrial Sector in the Nineties

Industrial development during the nineties took place due to the implementation of policies encouraging industrial development and due to liberalisation. These policies included incentives and concessions with regard to sales tax, income tax, power and pollution control. The response from the industrial sector was impressive in the last decade.

The rapid expansion of the industrial sector which took place in the nineties, especially in the latter half is indicated in Figure 4.1. During the period 1980-81 to 1996-97, the number of units in the Union Territory covered by the ASI has gone up from 140 to 348, a compound annual growth rate of 6.27 per cent. The same pattern can be observed with respect to value of output and employment. The growth rates of these indicators during this period were 15.13 and 5.01 per cent respectively.

Tourism Industry

Tourism is an increasingly important component of the service sector in Pondicherry. Pondicherry’s location on the Coromandel Coast coupled with its French past and spiritual attractions of the Aurobindo Ashram and Auroville provide the Union Territory with multiple tourist attractions. In the year 2000, over 5.5 lakh tourists visited Pondicherry of which nearly 25,000 were foreigners. Growth rates in tourism related sectors such as hotels and restaurants and retail and wholesale trade were well over 15 per cent.

Pondicherry has the potential to improve upon these achievements and become a major tourist centre in South India. Pondicherry’s goal should be to convert Pondicherry from a day trip and week-end destination to a long-haul destination.

At present, many visitors to Pondicherry either come from Chennai in the morning and return in the evening or pass through Pondicherry on the way to other cities such as Chidambaram A concerted effort must also be made to attract more foreign visitors to Pondicherry as only a small percentage of foreign tourists who visit Chennai come to Pondicherry.