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TN must set up industrial units in backward regions, says study

Our Bureau Chennai | Updated on October 12, 2014 Published on October 12, 2014

Economic appraisal by Department of Evaluation and Applied Research



Despite the perceptible industrial growth registered in the State, a lopsided development is observed in the distribution of industrial units across the districts, according to the Annual Survey of Industries. It also said stagnation is noticed in the share of manufacturing in gross State domestic product over a period of time.

Dispersal of units

To overcome the problem, dispersal of industrial units to backward regions, especially in Southern districts is imperative, according to an economic appraisal for Tamil Nadu done for 2011-12 to 2013-14 by the Department of Evaluation and Applied Research.

Tamil Nadu is likely to witness an investment of nearly ₹30,000 crore in 2013-14.

This is a marginal increase over last financial year when the State signed memorandum of understanding for projects providing direct employment to 1.46 lakh with a total investment of ₹26,625 crore.

The Annual Survey of Industries (2011-12) released by the Central Statistics Organisation revealed that Tamil Nadu, with 36,996 factories and 19.41 lakh persons engaged in registered manufacturing industrial units, occupied the first position among major industrial States.

In terms of other industrial parameters such as fixed capital (₹1.61 lakh crore), productive capital (₹2.11 lakh crore) and gross value of output (₹6.08 lakh crore), Tamil Nadu occupied the third place. In net value added (₹76,179 crore), the State ranked fourth, the survey said.

TN tops in LIs

According to the Ministry of Industry and Commerce, Tamil Nadu occupied first rank with regard to issue of letter of intents and direct industrial licenses (874) with more employment opportunities (1.52 lakh) between 1991 and 2013. In terms of proposed investment, Tamil Nadu occupied the fourth position (₹14,328 crore).

As of 2012- 13, the micro small and medium enterprises, with 8.5 lakh registered units and an investment of ₹48,190 crore provided employment opportunity to 58.53 lakh persons and the value of output stood at ₹1.84 lakh crore, the report said.

Published on October 12, 2014
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