TN GIM 2024: Tamil Nadu govt unveils roadmap to achieve $1 trillion economy

Tamil Nadu CM MK Stalin

The Tamil Nadu government unveiled a blueprint for the state to achieve a $1 trillion economy by 2030 on January 7, during the two-day Global Investors Meet in Chennai.

Chief Minister MK Stalin, who released the report, said, "We have set ourselves an ambitious target of becoming a $1 trillion economy by 2030."

The state has outlined seven key principles to realise this goal: investments, human capital, innovation, market efficiency, governance, infrastructure, and holistic inclusive growth.

Also read: Tamil Nadu gears up for Global Investors Meet, targets ₹5 lakh crore in investments

The vision document aims to attract $3.8-4.3 trillion in investments (public and private) to expedite growth and establish itself as a preferred destination for foreign direct investment (FDI), facilitating local investments for expansion.

In the realm of human capital, the plan is to add 60 lakh women to the workforce through upskilling and reskilling, along with training 1 crore individuals participating in the economy to transition them into high-value jobs.

Innovation-wise, the strategy is to pioneer industry-academia partnerships, becoming an R&D citadel and a preferred destination for startups in the region.

The state also intends to foster an industry-friendly climate by ensuring seamless access to land, labour and capital. It aims to achieve a leading position in 'Ease of Doing Business' by streamlining government-to-business (G2B) processes and simplifying regulations.

The vision document recommends robust policy-making with transparent and efficient governance, committed to driving economic development. Strengthening institutional and regulatory frameworks, along with establishing specialised agencies, is essential for delivering the envisioned goals, it said.

On infrastructure, it proposed to develop well-planned, best-in-class, sustainable, and resilient infrastructure to lay the foundation for growth. This includes creating robust social and commercial spaces, seamless transport networks, and sustainable water and sanitation systems, according to the report.

The goal of holistic and inclusive growth is to ensure that all districts and regions of the state become growth centers, driving prosperity for all sections of society. Embedding climate consciousness and sustainability at the center of all initiatives is a crucial aspect, it said.

TN aims to enhance the startup ecosystem

According to the report, startups will be recognised as pivotal engines for economic transformation, with Tamil Nadu boasting a vibrant ecosystem. The state aims to enhance this ecosystem further through multifaceted strategies outlined in its 'Startup Policy 2023,' positioning itself as the country's premier startup hub.

In the services sector, the report stated that IT and Global Capability Centers (GCCs) will play a major role in the state's economic growth. The focus is on attaining leadership in Software as a Service (SaaS) within the IT sector, becoming the preferred choice for industry players looking to expand into tier 1/2 cities and establishing itself as a leading data center hub in India.

Auto and electronics industries

In the automotive and Electric Vehicles (EV) sector, the state aims to spearhead cell component and EVSE component manufacturing. It also plans to grow stronger in the traditional Internal Combustion Engine (ICE) segment by evolving into an auto component export hub for the world. The document also suggested earmarking 1,000 acres in Chennai-Hosur-Coimbatore dedicated to auto components.

To unlock the full potential of the electronics industry, including semiconductors, it emphasises the need to encourage investments in cutting-edge semiconductor manufacturing facilities.

The state plans to develop IT/GCC corridors across ten cities, including Greater Chennai, Coimbatore, Madurai, Tiruppur, Tirunelveli, Erode, Trichy, Vellore, Salem, and Hosur.

The policy also focuses on other sectors like agriculture, machinery, Leather & Footwear, Textiles & Apparels, Tourism, Animation & VFX, Infrastructure, Energy, Housing, Education and Skilling, Healthcare, R&D ecosystem.

Also, read: Tata Electronics, JSW Energy, TVS Group unveil big ticket investments at Tamil Nadu Global Investors Meet