Tamil Nadu has shown 97% increase in Purchasing Power Parity(PPP) in the recent years but the country itself has shown only a 47% increase, TN is also the second largest contributing state for country’s GDP, it also has the 15% of whole country’s industries within its state making it a economically powerful state. So from the above mentioned information we could clearly accept that TN’s goal to become a Trillion dollar economy is highly reasonable. The major plans devised by the government to improve the state’s economy follows;
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BUILDING UP SUNRISE SECTORS:
TN is called as automobile hub of South Asia due to its extensive automobile assembling and auto components manufacturing, the state also excels in various fields which are referred as Focus sectors which includes
- Electronic hardware
- Heavy Engineering and Chemicals
In order to reach its goal TN has shifted its attention towards Sunrise sectors such as
- Agro and Food processing
- Medical Electronics
- Renewable energy components
In order to achieve sustainable development the government has planned to reduce the pressure over the greater Chennai. The government has planned to setup various manufacturing industries across the cities surrounding the Chennai as well as in the other small cities across the state. This strategy ensures the employment of people in their local region as well as equal and sustainable growth of the state. In order to decongest the Chennai govt of TN is about to setup 5 industrial clusters called as TANSIDCO(Tamil Nadu Small Industries Development Corporation Limited) in the cities of Madurai, Coimbatore, Vellore, Trichy.
MEDICAL AND EV PARK:
As a part of developing Sunrise sectors TN has planned to set up an exclusive Medical Devices manufacturing hub in Oragadam which is already a well grown industrial region. Responding to the revolution of Electric Vehicles(EV) the state has planned to build an EV manufacturing park in Manalur. It is a noteworthy fact that Ola has already signed MoU with TN govt to start an EV manufacturing plant in Krishnagiri with the investment of Rs 70,000 Crores.
Startups are believed to bring out marvelous innovation and huge employment in the country. In the recent years countries have begun to encourage the startups in that way TN has created detailed policies to ensure the great startup ecosystem in the state. The government is following the S2G buy day where the Government and Public Sector Undertakings procure the required products and avail the services from the startups to boost their market. These all actions are undertaken by TANSIM(Tamil Nadu Startup and Innovation Mission).
TN is the state which provides various freebies compared to all other states.But the freebies are of two types Meritorious and Non-Meritorious.Meritorious freebies would provide return to the government in the long run,like free bus service for women would include more women into the workforce.TN has spent huge amount for providing freebies which has also worked, freebies provided by TN were highly successful like ;
- free color television
- free bus service for school students, women.
- High quality food at low cost to beat the hunger among people below poverty line
- Fixed Deposit for girls.
So TN has the potential to achieve the goal of a Trillion dollar economy but it also has various challenges which could convert their goal really harder.TN has also pledged to increase its export by $100 billion dollars in 2030.