South Tamil Nadu, once a region largely associated with agriculture, is now experiencing an industrial renaissance, with investments pouring into the region at an unprecedented rate. According to Industries Minister Dr. TRB Rajaa, a significant 30.32% of the total investments into Tamil Nadu over the last four years have been earmarked for the southern districts, including Thoothukudi and Tirunelveli, marking the region’s emergence as a major industrial hub in the state.
At the heart of this transformation is the influx of both domestic and international investments, highlighted by the arrival of Vinfast, the Vietnamese electric vehicle giant, which is building the Rs 4,000 crore EV factory; Singapore based Sembcorp which is building 36,238 crore Green Hydrogen project in Thoothukudi for which foundation stone was laid by Chief minister; the 4.3-GW solar cell and module manufacturing plant of TP Solar Ltd, a subsidiary of Tata Power Renewable Energy Ltd, at Gangaikondan SIPCOT in Tirunelveli district; and Vikram Solar which is investing of ₹2,574 crore for a a 3 GW solar cell capacity and a 6 GW module capacity.
One of the standout projects is the Vinfast plant in Thoothukudi. When the company first showed interest in the region, there were concerns about the availability of skilled labor. However, local leaders, including DMK party;s senior leader Kanimozhi, reassured Vinfast that Tamil Nadu boasts a vast pool of talented youth. The state is also taking proactive measures to nurture this talent through initiatives like the Naan Mudhalvan scheme, which has already trained 344 diploma students at local polytechnic colleges. Of these, 200 have been assured employment at the Vinfast plant.
The state's investment in skill development has made a direct impact on the region’s workforce. “Through our schemes, we are not only creating jobs but also ensuring that these workers are highly skilled, which is a crucial advantage for industries like Vinfast that require technical expertise,” Rajaa emphasized.
Rajaa noted that since 2021, Tamil Nadu has secured investments worth ₹10,27,547 crore, with 897 Memoranda of Understanding (MOUs) signed, of which 722 have already been converted into tangible projects. These projects have begun to take shape, with production lines in operation and new facilities being set up.
The ambitious vision of the state government, exemplified at the 2024 Global Investors Meet (GIM), has yielded impressive results. At the meet, agreements valued at ₹6,64,180 crore were signed. Typically, in India, the conversion rate from MoUs to actual investments hovers between 25 to 30 percent. However, Tamil Nadu has defied these norms, achieving an extraordinary conversion rate of 72% — far surpassing even the initial target of 50%.
“I had predicted last year that we would exceed 50%, and we went beyond that — to 60%. When I shared this with our Chief Minister, he asked, 'When will we reach 70%?' I assured him it would be soon. Today, we have surpassed even that milestone,” said Rajaa.
This surge in industrial investment is not just about numbers. It signals a broader shift in Tamil Nadu’s economic landscape, positioning the state as a leader in high-tech manufacturing. In particular, the state has emerged as a dominant player in the electronics export sector. In 2024, Tamil Nadu contributed 41.23% of India's total electronic exports, a staggering $14.65 billion.
As Rajaa pointed out, the state's strengths have traditionally been in sectors like textiles, automobiles, and leather. However, Tamil Nadu is now leading the charge in the high-tech manufacturing space. This evolution is underscored by the establishment of cutting-edge semiconductor parks in Coimbatore and the rapid progress of projects like a grand tidal park in Madurai and a footwear park in Melur.
Beyond the automotive and high-tech sectors, the textile industry in Coimbatore is also thriving. Rajaa pointed to the recent achievement in Tirupur, where textile exports surpassed ₹40,000 crore in the past year. However, the industry continues to face challenges in labor availability, particularly in garment manufacturing. To address this, the industry is actively engaging with associations and leveraging platforms like SIPCOT to find sustainable solutions.
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