He said between 1947 and 1991, the growth of the industry was largely determined by the policies of the government of India. But with liberalisation and globalisation of the Indian economy most of the initiatives have shifted from the Central government to the states. The states have assumed the driver's seat and are now deciding their own destiny.

Delving on the theme of the summit `Dynamic South', Karunanidhi said that despite the fact that South India is not endowed with natural resources as in the rest of the country, it accounts for close to 24 per cent of the country's gross domestic product. About 24 per cent of India's population live in the South of which as much as 60 per centare literates compared to the national average of 52 per cent.

Close to 40 per cent of country's engineering and medical colleges are situated in South, thus providing good quality trained manpower. This, he said, is a crucial factor for prospective investors who can develop more skill-based industries than resource-based ones. It also makes absorption of technology very easy, he added.

In the field of information technology, Karunanidhi said that South accounts for over 70 per cent of software produced and exported from India. The states, he said, are making considerable investments to improve the availability and quality of the IT-trained workforce.

The chief minister quoting Centre for Monitoring Indian Economy (CMIE) data on flow of investments said that three of the top six states attracting maximum investments as of November 1998 are in South. The southern states accounted for 33 per cent of the total investment proposals approved and under implementation, Karunanidhi added.

He opined that Southwith its focus on infrastructure augmentation both social and economic, thrust on information technology and with its spirit of enterprise is all set to shift upwards to a higher growth curve and the day is not far off when south becomes `India's engine of growth'.

In his Inaugural address Jaswant Singh, Union minister for external affairs and deputy chairman of the Planning Commission highlighted the various steps taken by the Central government in the field of power, ports, airports, roads, telecom, oil exploration, information technology etc.

US Ambassador to India, Richard Celeste emphasised on three points for economic cooperation viz. thinking beyond traditional borders, learning to co-operate to compete and adopting a win-win agenda. Commenting on India's trade with the US, he said that India is the 32nd largest export market for US.

Historically, whenever exports from the US to India increased, India's export to the US increased much faster, Celeste said pointing to a win-win possibility.

In alighter vein he said the Silicon Valley in the US and the Silicon Triangle in India (comprising the three southern state capitals which are in forefront in IT development) could meet in cyberspace and practice co-operation to compete, he added.

N Sankar, chairman, Indo-US Joint Business Council welcomed the gathering and made the opening observations. Tamil Nadu and Karnataka made presentations on investment climate and opportunities in their respective states. The summit is attended by over 120 US businessmen and a large number of their Indian counterparts.