The Tamil Nadu government in 2024 took significant steps towards its goal of achieving a $1 trillion economy by 2030. It includes securing major investments and introducing sector-specific policies aimed at boosting growth. Additionally, the government focused on improving the ease of doing business and hosted its first Global Investors Meet (GIM), marking a key milestone in its economic agenda.
In 2024, a major shift occurred in Chennai’s business landscape with the acquisition of India Cements, one of the city’s major cement companies. Kumar Mangalam Birla’s UltraTech Cement, a leading player in the industry, announced the purchase of the long-established company, which had been promoted by industrialist N. Srinivasan.
Additionally, the state’s Global Investors Meet (GIM) in January 2024, resulted in investment commitments worth Rs 6.64 lakh crore from various companies, expected to create 26 lakh new jobs in Tamil Nadu.
Among the major investments secured in 2024, Vietnam-based VinFast committed Rs 16,000 crore to establish a manufacturing facility in Tuticorin, Tamil Nadu, which is expected to create around 20,000 new jobs. Additionally, Tata Motors announced a Rs 9,000 crore investment to set up a production unit for sports utility vehicles and electric vehicles in Ranipet, a move that would generate approximately 5,000 jobs in the region.
CM’s foreign visit
In 2024, Chief Minister M.K. Stalin led several high-profile delegations abroad to attract investments. Following the parliamentary elections in May, Stalin visited Europe, where he met with prominent industrial leaders in Spain and signed MoUs with major companies like ROCA and Gestamp.
Later, during his trip to the United States, he engaged with representatives from 18 Fortune 500 companies. The visit resulted in 19 MoUs, totaling Rs 7,618 crore in investment commitments, expected to generate 12,000 new jobs in Tamil Nadu.
Mini-TIDEL Parks to Boost IT Growth
As part of its ‘distributed growth’ strategy, the Tamil Nadu government announced the establishment of mini-TIDEL Parks (TIDEL Neo Parks) in collaboration with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). These facilities, set to be developed in Villupuram, Karaikudi, and Tirunelveli, aim to bring IT sector benefits to smaller towns and villages.
Each Mini TIDEL Park will be equipped with modern amenities such as air-conditioning, high-speed internet, and an uninterrupted power supply, providing space for about 500 IT professionals.
Political analyst Sumanth Raman suggested that the Tamil Nadu government establish a public dashboard to track the actual inflow of investments, ensuring transparency on how much of the committed capital has been realized in the state.
He told PTI,”It is the easiest thing to do (to set up a dashboard). But the government has not done it. Can you check online or even offline to get this data? For example, the Chief Minister had gone to Spain to invite companies to invest in the State. But we do not know from Spain what investment has come to the state.”
In a bid to boost the electric vehicle (EV) industry, the Tamil Nadu government is in talks with the state electricity board to establish charging infrastructure along key roads and highways. This initiative is part of the state’s broader strategy to support the growing EV sector, where Tamil Nadu already leads, accounting for nearly 40 percent of the country’s EV four-wheeler production.
(With PTI Inputs)