South India presents an unprecedented opportunity for industrial investments as five States compete aggressively to attract investors, says Rajshree Pathy, Chairperson, Confederation of Indian Industry – Southern Region.

The region is an ideal destination in terms of physical infrastructure such as roads and ports, skilled human resource and an established industrial base – Tamil Nadu is unique as it boasts a diverse manufacturing base.

For 2015-16, CII-SR has taken up the theme SMART South to reflect the aspirations of the region. SMART, standing for Skills, Manufacturing, Agriculture, Renewable and Technology, aims to build on these fundamental strengths, Rajshree told BusinessLine on Saturday on the side lines of a CII regional council meeting on the theme.

It is also a challenging phase for CII in the region as two newly formed States – Telangana and Andhra Pradesh – look to virtually start from the scratch and push for investments. The association will play a central role in policy advocacy in both these States and work with investors.

Each State is unique, she pointed out. Tamil Nadu has established itself as the destination for automobile and auto components industry, information and communication technology with a 20-25 per cent share of output in these sectors; Karnataka has 70 per cent of India’s investment in aerospace and Defence apart from being an IT hub.

The combined GDP of the region is estimated at $300 billion, which is about the same as Malaysia, and is set to more than double by 2020.

CII’s largest membership is the MSME sector. “We are concerned about the sector and how it can benefit from the opportunities,” she said.

‘Expedite projects’ Large projects such as the industrial corridor developments, including the Chennai-Bangalore Industrial Corridor and the Chennai-Vizag Industrial Corridor, can integrate the region giving access to investors to fully exploit their individual strengths, she said. These are projects that have to be expedited by the respective governments. The Centre has showcased the country to the world and created a favourable impact among investors. In the coming year, it should concentrate on the manufacturing sector . “We do feel manufacturing has been sluggish and the Make in India programme has to be given a fillip,” she said. State governments have to work with the Centre.

The human capital and entrepreneurship in the South are huge strengths. Both Telangana and AP are keen on skill building and CII is playing an active role here. The peaceful industrial relations atmosphere, particularly in Tamil Nadu and Karnataka, is a big assets, she said.

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