Economy of Tamil Nadu

Possessing the third largest economy (2004-2005) among states in India, Tamil Nadu is also the second most industrialised state next to Maharastra. [4] It ranks second in per capita income (2004-2005) among large states. It ranks third in foreign direct investment approvals (cumulative 1991-2002) of Rs.22,582.64 crore (USD 5 Billion USD), next only to Maharashtra (Rs.36,602.41 Crore (USD 8,100 million)) and Delhi (Rs.30,303.79 Crore (USD 6.7 Billion USD). The State’s investment constitutes 9.12% of the total FDI in the country . Unlike many other states, the economic resources are quite spread out, rather than concentrated in a small industrialised area.

According to the 2001 Census, Tamil Nadu has the highest level of urbanization (43.86%) in India, accounting for 6% of India’s total population and 9.6% of the urban population. Tamil Nadu has a network of about 110 industrial parks and estates offering developed plots with supporting infrastructure. Also, the state government is promoting other industrial parks like Rubber Park, Apparel Parks, Floriculture Park, TICEL Park for Biotechnology , Siruseri IT Park, and Agro Export Zones among others.

The Tamil Nadu state government owns the Tamil Nadu Newsprint and Papers (TNPL)[9], the world’s biggest bagasse based Paper mills in Karur as well as the world’s sixth largest manufacturer of watches together with TATA, under the brandname of “Titan” [10]. 55% of all wind-generated electricity in India is created by windmills in Tamil Nadu. Renowned Danish wind power company NEG Micon has established its manufacturing unit in Chennai. Tamilnadu is leading producer of Cement in India, it is the home for leading cement brands in the country such as Chettinad cements(Karur), Dalmia cements(Dalmiapuram), Ramco cements (Madras cement ltd.,), etc.,

Annual Plan outlays have increased by a record 75% from Rs.5,200 crore (USD 1.1 Billion USD) in 2001-2 to Rs.9,100 crore (USD 2 Billion USD) in 2005-6.