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Industries in Tamil Nadu


Tamil Nadu Industry 

Manufacturing is the primary industrial activity in Tamil Nadu. Textiles, engineering, tanneries, tobacco and beedis, plantations, and fireworks are some of the major industries in Tamil Nadu. While plenty is employment is available in urban areas, opportunities are mostly limited to public sector or small scale manufacturing in rural areas. This creates a movement of educated population into major cities of Tamil Nadu and other states of India. People of Tamil Nadu are sought by employers all over India and the world for their hard work and dedication. Tamil work and study ethic is envied and provided as an example for others to follow.

Car and tractor manufacturing and related automotive components makes the majority of manufacturing activities in the Chennai region and surrounding areas. One of the challenges is that most of the activities are concentrated around the Chennai area. As land costs skyrocket, there is little opportunity or incentive to expand manufacturing facilities. Also the innovation rate of the manufacturing sector is quite low and many of the companies do not have a steady growth rate. Despite these challenges, Tamil Nadu has been second in industrial output among all the states of India.

The recent manufacturing trends suggest that the access to a major Airport is as important a factor as is availability of power and good roads and tourist facilities. At the executive level, ease manufacturing and ease of monitoring and access become equal contributing factors. Innovation based mindset has to be encouraged so that Tamil Nadu does not have to compete on price and state level incentives in the long run. While the software industry is the mainstay of Tamil Nadu now, there have been relatively few innovation based approaches.

Tamil Nadu has a proven track record of being a pro-business community. It is time to leverage that advantage and create new industrial and innovation tracks throughout Tamil Nadu. Commercial and manufacturing hubs other than Chennai have to come up so that international companies do not look to other states for their expansion plans. The recent transition of Chief Minister has created some challenges and new dynamics that have caused concerns.


Specialties of Tamil Nadu

Tiruppur knitwear

Tiruppur is India's knitwear capital: thousands of units knit, dye, print and stitch cotton T-shirts, innerwear and children's clothes, much of it exported to Europe and the United States.

Kovilpatti kadalai mittai

Kadalai mittai, a peanut and jaggery candy, is made in Kovilpatti in Thoothukudi district with local groundnuts and jaggery, and is sold across Tamil Nadu.

Help for entrepreneurs and local industries

Every district has a District Industries Centre (DIC), run by the state's industries department. It is the first place to go to register a unit, to apply for the state's incentives and subsidies, and for help with central schemes such as PMEGP.

From the Tamil Nadu government

From the Government of India

  • Udyam Registration: free online registration for micro, small and medium enterprises, with an Aadhaar number; the Udyam certificate is needed for most MSME schemes and for priority-sector bank loans
  • Prime Minister's Employment Generation Programme (PMEGP): loans to start a new micro enterprise, with a government subsidy of 15 to 35 per cent of the project cost (higher in rural areas and for women, SC/ST and other special categories); apply through the District Industries Centre or the Khadi and Village Industries Commission
  • Pradhan Mantri MUDRA Yojana: loans without collateral from banks, small finance banks and microfinance institutions: Shishu up to Rs 50,000, Kishor up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh for those who have repaid a Tarun loan
  • Stand-Up India: bank loans of Rs 10 lakh to Rs 1 crore to set up a new enterprise, for women and for Scheduled Caste and Scheduled Tribe entrepreneurs
  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): guarantees bank loans to micro and small enterprises, so they can borrow without collateral or a third-party guarantee
  • Startup India: recognition by the Department for Promotion of Industry and Internal Trade, which brings tax and patent benefits, the Startup India Seed Fund and mentoring
  • PM Vishwakarma: for artisans and craftspeople in 18 traditional trades: recognition, skill training with a stipend, a toolkit grant and low-interest loans without collateral
  • PM Formalisation of Micro Food Processing Enterprises (PMFME): for small food-processing units: a 35 per cent credit-linked subsidy (up to Rs 10 lakh a unit), seed capital for self-help groups, and help with branding and marketing
  • Government e-Marketplace (GeM): sell goods and services online to government departments and public sector companies
  • MSME Samadhaan: file a case when a buyer has not paid a micro or small enterprise within 45 days
  • MSME Champions: the Ministry of MSME's help desk for complaints and problems with finance, approvals and markets
  • MSME Development and Facilitation Offices: the Ministry of MSME's offices in every state: advice, training, testing and the ministry's schemes
  • Small Industries Development Bank of India (SIDBI): the bank for small industries: loans, and refinance through other lenders
  • National Single Window System: one place to apply for central approvals and licences, and for many states' approvals
  • One District One Product: promotes a chosen product of each district, with help to find buyers and export
  • NIESBUD: the national institute for entrepreneurship training, under the Ministry of Skill Development and Entrepreneurship
  • myScheme: search central and state government schemes by state, occupation and other details

Schemes, limits and subsidies change with each budget: check the official site before applying.

Sources

Specialties: Tiruppur knitwear (One District One Product: Tiruppur); Kovilpatti kadalai mittai (Geographical Indication: Kovilpatti Kadalai Mittai).