Ficci suggests TN to focus on three areas for transformational change

Though Tamil Nadu is a dominant player in the Indian manufacturing sector, there is substantial scope to climb the value-addition chain in areas such as electric vehicles, electronics, semiconductors, chemicals, defence and aerospace, textiles and pharmaceutical/medical devices, says a report on ‘Towards One Trillion: Accelerating Tamil Nadu’s progress to become a trillion-dollar economy’, released by FICCI in association with Delotte on Saturday.

For transformational change, the report suggested three strategic focus areas - Made in TN; Brand TN and Led by TN, says the report released by Tamil Nadu Chief Minister MK Stalin. These areas are likely to have the greatest impact in boosting the economy towards the one trillion mark, the report said.

TN CM MK Stalin with Mano Thangaraj, TN IT Minister, at the release of the FICCI-Deloitte Knowledge paper on ‘ Accelerating TN’s progress to becoming a one trillion dollar economy by 2030-31’, at the national executive committee meeting of FICCI in Chennai. | Photo Credit: Bijoy Ghosh

Made in TN

On Made in TN, the report said that Tamil Nadu’s manufacturing strength is well established. However, there remains considerable scope for the State to move up the value chain in manufacturing. This is specifically true for sectors such as Electric Vehicle (EV), agri-allied food processing, technical textiles, chemicals, non-metallic minerals, and electronic and semiconductor industries, where it can considerably enhance its value addition.

Brand TN

Under Brand TN, the focus should be to integrate the State as an integral part of the global economy, trade and culture. This includes aspects from exports to tourism. The strategic location of Tamil Nadu along the eastern coast of India, which is in close proximity to global trading hubs like Singapore. The availability of technical talent puts Tamil Nadu in a fair position to be India’s export and global trade hub. Tamil Nadu could be a key transhipment hub, and a capital for IT-enabled services exports.

Led by TN

On Led by TN, the State should aspire to lead India in emerging technologies and innovation. This would enable the State to attract investments from growing sectors and provide a head-start over other economies, the report said.

Structured strategic interventions in the focus areas will drive the State economy to achieve the $1 trillion mark. These interventions will require constant monitoring, evaluation, and fine tuning,

The report said, TN’s manufacturing strength is well established. However, there remains considerable scope to move up the value chain in manufacturing. This is specifically true for sectors such as EV, agri-allied food processing, technical textiles, chemicals, non-metallic minerals, and electronic and semiconductor industries, where value addition is possible.

Tamil Nadu has immense untapped potential in the automobile sector. The state can aim to be the ‘Stuttgart of Asia’ by utilising its already-established industrial ecosystem. Increasing focus on the EV sector will help achieve its sectoral targets.

Tamil Nadu should also aspire to lead India in emerging technologies and innovation. This would help attract investments from growing sectors and give a head-start over other economies. R&D refocussing R&D is key to help the State climb up the value chain. The State has a strong base of high-skilled talent from top institutions, the report said.

Structured strategic interventions in the focus areas will enable the state to progress towards the $1trillion mark. It is important to note that these interventions will require constant monitoring, evaluation, and fine tuning.

Each intervention should therefore be linked with Key Performance Indicators (KPIs) that reflect the impact of the intervention on economic growth. The KPIs must be closely monitored at the chief minister’s level, and immediate course correction should be taken by concerned government departments when the KPIs fail to meet benchmarks. With timely implementation and monitoring of the interventions, there is no doubt that Tamil Nadu will comfortably achieve its ambitions of becoming a $1 trillion economy by 2030, the report said.

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