Tamil Nadu eyes bigger investments from abroad

The state is planning to attract more local and foreign investors from the Global Investors Meet which it is hosting next month.

Chennai: Wooing foreign and local investors with industry-friendly policies, Tamil Nadu expects to attract much bigger commitments for investments than before during the state's flagship global investors meet in January 2024.

The state has targeted to become a $1 trillion economy by 2030 and has been showcasing itself as the "gateway to endless opportunities". The ruling DMK, which is set to organise its maiden Global Investors Meet (GIM), has been seeking investments from overseas investors through visits to Japan, Singapore and Dubai.

In an interview to PTI, Tamil Nadu Industries Minister T R B Rajaa said the state has already got commitments for investments to the tune of Rs 3 lakh crore by way of Memoranda of Understanding (MoUs) inked with various companies.

These investments will create thousands of direct and indirect jobs, he said and asserted that the state is progressing in its vision to become a $ 1 trillion economy by 2030.

Apart from auto and electronic manufacturing activities, Tamil Nadu has come out with an Electric Vehicle (EV) policy that is aimed at attracting investments worth Rs 50,000 crore and generating 1.50 lakh jobs in the fast growing EV segment.

The GIM is scheduled to be held on January 7 and 8, 2024.

"Now, moving into GIM, we've a totally different target apart from Rs 3 lakh crore worth of investments which have come in. We're expecting a few lakh crores of investments more to come in," Rajaa said.

The opposition party in the state Assembly, AIADMK, conducted its flagship GIM in 2015 under the then Chief Minister J Jayalalithaa and had garnered investment commitments of Rs 2.42 lakh crore.

Without divulging specific details about the expected investments, he said, "I can't give you any number (on the target). It'll be bigger than any other GIM held before."

In May this year, Tamil Nadu Chief Minister M K Stalin went on a nine-day tour to Singapore and Japan to woo investors into the state. He had also undertaken a trip to Dubai in 2021 to seek investments.

"The key motive of the visit to Singapore and Japan was to extend an invitation to investors for the 2024 GIM," Stalin had said.

About the GIM, Rajaa said that after DMK assumed office in May 2021, whatever the government has done, it made sure that there was a "good hit rate".

"Even if we do something close to about 75-80 per cent, we'll be able to get 75 per cent of realisation of the MoUs signed and I think that is good," he said.

The state has received some big-ticket investment commitments in recent times, including Renault-Nissan Automotive India Pvt Ltd committing Rs 5,300 crore to support new product launches and projects which would create 2,000 jobs.

The logo of GIM depicts the Tamil word 'tha' which the chief minister had said symbolises that the state offers a perfect blend of timeless tradition, thriving industrial ecosystem, technological advancement, treasured talent and social inclusion.

"Tamil Nadu is your gateway to endless opportunities," he had said.

Taiwan-based Hon Hai Technology Group, popularly known as Foxconn, has also committed investments of Rs 1,600 crore for a new mobile component manufacturing unit in the state.

According to government officials, Tamil Nadu had signed 241 MoUs with various companies which have committed investments of Rs 2,97,196 lakh crore. These investments are expected to generate 4,15,282 new jobs in the state.

Rajaa said that currently, Chennai, Hosur and Coimbatore have emerged as the favourite places among investors.

"For example, it may be in southern districts where in places like delta districts (Thanjavur, Tiruvarur) you can do food processing. Then, again in western belt, you can see the booming of electric vehicle clusters. And the proximity to Bengaluru from Hosur is there, so we can also try and get the information technology crowd," he said.

Further, he said that in the southern parts of the state, entities can look for renewable power generation.

The state is a major electronics exporter.

According to Rajaa, electronic exports reached an all-time high of $ 4.8 billion and is expected to touch $ 8 billion by the end of this financial year.

Tamil Nadu leads in electronic exports with $ 4.78 billion as of October 31, 2023, followed by Uttar Pradesh at $ 2.58 billion, he noted.

In addition, the government is moving ahead with industry specific policies, including an organic farming policy that was launched in March 2023 and is aimed at 'chemical-free organic' agriculture in the state.

On the EV front, the government's policy was introduced as battery-operated vehicles are expected to play a crucial role in ensuring last-mile connectivity.

"The government was giving a big push for EV. Of all the EVs sold in India, 70 per cent of two-wheelers and 40 per cent of four-wheelers were manufactured in Tamil Nadu.

"A huge number is being manufactured in Tamil Nadu and the consumption in Tamil Nadu is also picking up now. We're also building the EV ecosystem in the state," Rajaa said.

Ola Electric has committed investments of Rs 7,614 crore to roll out electric light motor vehicles from its manufacturing facility in Ranipet, Tamil Nadu.

The investments will include setting up of lithium-cell manufacturing facilities with a capacity of 20 GW, and are expected to generate 3,111 new jobs in the state, as per the company.