Double digit investment growth for TN: Study

Tamil Nadu has attracted domestic and foreign investment worth over Rs 10 lakh crore in the last eight years, almost seven per cent of the total investment commitments made across India, according to a study.

The study titled ‘Realising double digit growth in Tamil Nadu’ — released by Associated Chambers of Commerce and Industry of India southern region council chairperson Ravindra Sannareddy, chairman of India-SAARC business promotion council Ravi Wig and national secretary general D S Rawat ­— says Tamil Nadu is ranked sixth among industrialised states attracting investments. Clocking a year-on-year growth rate of over 10 per cent, Tamil Nadu has successfully attracted investment proposals worth over `10 lakh crore as of June 2013, the report says.

“The electricity sector with a share of 44.5 pc in total investment is the main investment absorber. The State is witnessing investments in both conventional and non-conventional energy resources and has 132 proposals absorbing investment worth over `4 lakh crore, clocking year-on-year growth of over 30 per cent,” the study says.

After power, the services (29.1 per cent) and manufacturing (16 per cent) sectors are the important investment destinations in Tamil Nadu, the report says.

The real estate sector has attracted 9.1 per cent of the total investment, while the irrigation and mining sectors have gotten lower shares in investment.

As for the implementation status of investment projects, more than 52.8 per cent of these investments are under implementation and 40.4 per cent are in announcement stage, the report says.

Tamil Nadu has acquired a share of over nine per cent and over five per cent in the total investments made by government and private sources respectively across India, it states.

Recording a Compound Annual Growth Rate (CAGR) of about 10 per cent, the services sector accounted for the highest contribution of over 61 per cent to the State Domestic Product (SDP). The report states that the industrial sector in Tamil Nadu grew at nine per cent CAGR, thereby contributing over 30 pc to the SDP.

The study also points out that agriculture is increasingly transforming into a failing economic activity.

source: http://www.newindianexpress.com / The New Indian Express / Home> Education> Student / by Express News Service – Chennai / August 02nd, 2013