TN attracts Rs 10 lakh crore domestic, foreign investments

Chennai:

Tamil Nadu has attracted domestic and foreign investments worth over Rs 10 lakh crore, which is seven per cent of the total investment commitments made across India in the last eight years, according to a study.

The study ‘Realising Double Digit Growth in Tamil Nadu’, which was released by Associated Chambers of Commerce and Industry of India southern region council chairperson Ravindra Sannareddy, chairman of India-Saarc Business Promotion Council Ravi Wig and national secretary general D S Rawat, said that the state is currently ranked sixth among the industrialized states attracting investments.

The report stated that clocking a year on year growth rate of over 10 per cent, Tamil Nadu has successfully attracted investment proposals worth over Rs 10 lakh crore as of June 2013.

“Electricity sector with a share of 44.5 pc in total investment is the main investment absorber. The state is witnessing investments in both conventional and non-conventional energy resources and has 132 proposals absorbing investments worth over Rs four lakh crore there by clocking year-on-year growth of over 30 per cent,” the study stated.

After power, services (29.1 per cent) and manufacturing (16 per cent) are the important investment destinations in Tamil Nadu, the report said.

The real estate sector has attracted 9.1 per cent of total investment while irrigation and mining sectors have got lower shares in investment.

As for the implementation status of investment projects, more than 52.8 pc of these investments are under implementation and 40.4 pc are in announcement stage, the report added.

The report also stated that Tamil Nadu has acquired a share of over nine per cent and over five per cent in the total investments made by government and private sources respectively across India.

Clocking a compund annual growth rate of about 10 per cent, the services sector accounted for highest contribution of over 61 pc to state domestic product (SDP). The report also stated that the industrial sector in Tamil Nadu grew at nine per cent CAGR thereby contributing over 30pc to the SDP.

Interestingly, the study also pointed out that agriculture is increasingly transforming into a failing economic activity. “Growing at five per cent, the primary sector comprising of agriculture, fishing, forestry and logging contribute about 8.5 per cent of SDP,” the report added.