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Welcome to Tamil Nadu An Investor’s paradise A presentation on the State’s investment potential
Welcome to Tamil Nadu
An
Investor’s paradise
A presentation on the State’s investment potential
Advantage India – An ideal investment destination
Land of abundantWorld's largest
natural resourcesdemocracy with 1.2
and diverse climaticbillion people
conditions
Enabling businessenvironment with Strong Market
greater Fundamentalsglobal participation
Access to technologyImpetus on
as aInfrastructure
result of the ITDevelopment
revolution
Progressivesimplification and
Competitively pricedrationalization of
skilled labourdirect and indirecttax structures
India stands out as a major emerging market
economies in the world with an average growth
rate of 7.5%.
With a favorable demographic dividend wherein the
average of it’s population will be 29 years by 2020,
the Government of India has initiated ‘Make In
India’ campaign to facilitate investment, foster
innovation, enhance skill development and to build
Best-in-class manufacturing infrastructure in India.
INDIA : AN IDEAL INVESTMENT DESTINATION
1.68
1.71
1.72
1.78
1.8
1.83
1.86
2.03
India
France
Japan
Canada
UK
China
Germany
USA
FDI Confidence Index ranking - 2017 (AT Kearney Survey)
Rank 8th
•The 7th preferred investment destination (World investment Prospects Survey 2013-15 by
UNCTAD)
•USD 332 billion of FDI inflows between April 2000 to March 2017
•10th largest economy in the world by nominal GDP
• 3rd largest economy in the world by purchasing power parity (PPP)
• One of the fastest growing economies in the world - (decadal growth rate of about 8%)
Services 18%
Computer hardware & software -
7%
Construction & dev - 7%
Telecommunications - 7%
Automobile -5%
Drugs & pharma -4%
Power 4%
Others -48%
Sectorwise FDI inflow
111.52
303.7
450.59 448.03
380.36
83.54
185.3
313.54 310.34262
0
250
500
2004-05 2008-09 2013-14 2014-15 2015-16
Import Export
CAGR
Exports
16%
CAGR
Imports
17%
Key export destinations Key import sources
USA 13% ÙAE 10% China 5% Singapore
4.5%
China
11%
Saudi
Arabia 8%
UAE 7% USA 5%
% contribution to total exports % contribution to total imports
Tamil Nadu
Investors Paradise
Tamil Nadu at a glance
Area of 130,000 Sq.km (4% of India’s geographical area)
72 Million Population (50% Female population)
58 Million Literates (80% Literacy Rate)
48.5% of the population live in urbanized localityTamil Nadu
0.85 Million MSMEs with an investment of USD 8 Billion
Cumulative FDI investment of USD 20.51 Billion from April 2000 to March 2017
Installed power capacity of over 20,000 MW, of which over 8000 MW of renewable energy capacity
USD 162.7 Billion GDP in 2016-17 at 2004-05 constant prices with a CAGR growth of 9% over the last 10 years
300 + multi – specialty hospitals with about 12,500 doctors
Parameter Rank
Urbanization rate 48.5% First
Size of State Economy (GSDP) at constant prices (2014-15) Rs. 5,15,458 crores Second
Per capita Income at constant prices (2014-15) Rs.112664 Third (among major States)
Number of Factories 43,372 First
Invested Fixed capital in factories sector Rs.2,21,31,634 crores Third
Number of New MSMEs filed (2007-14) 437065 First
Number of workers employed 19,87,785 persons First
Value of Industrial output produced Rs.6,22,307.58 crores Third
Net value addition in factories sector Rs.93,947.24 crores Third
Exports (2014-15) Rs.1,98,400 crores Third
FDI attracted (April 2011 to March 2017) (US $ 20.51 billion) Third
Source: Central Statistical Organisation – CSO and Department of Industrial Policy and Promotion (DIPP)
TAMILNADU AN ECONOMIC POWER HOUSE
• Tamil Nadu’s GSDP in 2015-16: INR 9798.16 billion (US $ 150.3 billion).
• On PPP basis, GSDP:US $ 381 billion (IMF data).
• Second largest economy among Indian states.
• On Global scale, Tamil Nadu has been ranked as 46th largest economy (on PPP basis) – bigger thanRomania, Ukraine, Vietnam, Bangladesh, New Zealand, Norway, Finland, Denmark etc. Innominal terms, TN is ranked 58th.
• One of the fastest growing State economies with an average growth rate of 9.25% in the last 12years.
• One of Top Three FDI destinations among Indian states.
• Tamil Nadu Vision 2023 target to place Tamil Nadu in the league of Upper Middle Income countries.
TAMILNADU IN GLOBAL ECONOMY
Tamil Nadu - India’s economic powerhouse
8.4% 11% 17% 16%2nd largest contributor to Contribution to India’s State’s share in number of factories, State’s share in India’s
India’s GDP industrial output higher than any other State industrial workforce
$€£¥ #1
6% 28% 18% 48.5%Ranks 3rd in terms of Contribution to India’s Number of India’s technical India’smost urbanized State
cumulative FDI inflows (USD 16 renewable energy capacity, universities, higher than any by geography and populationbillion from 2000 to 2014) higher than any other State other State
Average growth rate between 2004-05 to 2015-16
India 7.58%
Tamil Nadu 9.25%
Source: CSO, Govt of India
8.79
7.58
0
2
4
6
8
10
12
14
16
Tamil Nadu
INDIA & TN GDP GROWTH RATES AT CONSTANT PRICES
The success of Tamil Nadu is attributed to the availability of 3 key factors
TAMILNADU GROWTH ENABLERS & STRENGTHS
STATE OF THE ART
INFRASTRUCTURE
SKILLED
MAN POWER
CONDUCIVE BUSINESS
ENVIRONMENT FOR INVESTORS
TAMILNADU ROBUST & QUALITY INFRASTRUCTURE
200,000 km of road network 4 large ports account for over 19.3% of India’s major port capacity
Railway network of about 6,700 km 4 International airports handling 19.04 million passengers
LAND
Developed and maintained by State Industries promotion Corporation of
Tamilnadu
• 20 well developed Industrial Parks and 45 Notified Special Economic Zones owned by government agency
• Well-developed social infrastructure: Health care, education, Housing, etc.
Density per 100 km2 of land area Tamil Nadu India
Road density 177 kms 148 kms
Rail density 32 kms 19.27 kms
TAMILNADU INFRASTRUCTURE PROFILE
POWERPower generating capacity:
22000 MW – Second largest
COMMUNICATIONLargest Bandwidth and High
Tele density - Highest in India –14.8 Tbps (3 Submarine cables:
(SEA-ME-WE-4, i2i, and TIC)
CHENNAI
TUTICORIN
COLACHEL
ENNORE
CUDDALORE
NAGAPATTINAM
PAMBAN & RAMESWARAM
MANAPPADU
THIRUKADAIYUR
KATTUPALLI
VALINOKKAMTAMILNADU PORTS
Chennai is one of the most efficient ports of India
Chennai has two Container Terminals with 3.0 Million TEUs capacity and a Car export terminal.
CHENNAI CAR EXPORTS
TAMIL NADU CONNECTED AIR NETWORKTamil Nadu is well connected to the major cities of the world by air
SKILLED MANPOWER AVAILABILITY
Annual turn-out: 188456 Technicians
Annual turn-out: 116551 Workers / Operators
Annual turn-out: 262,164 Engineering Graduates
501 Polytechnics
1552 Industrial Training institutes and schools
576 Engineering
Colleges
• Tamil Nadu – pioneer in promoting Technical education in Private sector• Annual Turn-out: More than 1.0 million Graduates (Engineering, Arts & Science), Diploma
holders and ITI workers• Abundant availability of skilled manpower at competitive wage cost • Wage cost of a skilled worker: about US$ 150 to 180 per month – Less than one US$ per hour• GoTN is setting up an innovation fund that rewards students, academic institutions and others
engaged in R & D
• State Government has set up world class institutions as Centres of excellence in the following domains:
• Automotive• Solar and clean technology• Agricultural practices• Water conservation• Construction• Aerospace• Basic sciences• Nano Technology
High quality human resource for allfocus sectors -mechanical, electrical &
communication, civil, chemical,biotechnology domains
electronics, computers and
Rank City Cost of Living Index Rent Index Cost of Living Plus Rent Index Groceries Price Index Restaurant Index
1 Hamilton, Bermuda 132.32 120.87 126.82 128.62 120.35
2 Zurich, Switzerland 130.99 64.16 98.87 131.72 131.77
15 New York, NY, United States 100.00 100.00 100.00 100.00 100.00
22 London, United Kingdom 94.82 85.48 90.33 73.37 101.34
39 Tokyo, Japan 85.09 49.63 68.05 91.08 53.33
59 Paris, France 81.61 45.98 64.49 77.34 80.31
93 Seoul, South Korea 78.33 47.75 63.63 91.92 44.74
101 Los Angeles, CA, United States 77.78 63.73 71.03 76.54 78.83
458 Mumbai, India 28.93 18.59 23.96 30.59 20.41
460 Delhi, India 28.74 9.28 19.39 27.44 21.23
467 Pune, India 26.55 7.22 17.26 28.54 17.23
471 Bhopal, India 26.09 3.52 15.24 22.43 15.43
474 Bangalore, India 25.90 8.43 17.50 27.14 15.04
478 Jaipur, India 25.47 4.48 15.39 26.38 13.46
479 Navi Mumbai, India 25.42 9.23 17.64 24.92 20.61
481 Visakhapatnam, India 25.15 4.71 15.33 26.92 11.99
483 Chennai, India 24.89 6.70 16.15 26.86 14.41
493 Bhubaneswar, India 22.45 4.06 13.61 23.22 13.25
494 Kochi, India 22.06 5.33 14.02 23.30 11.93
495 Madurai, India 21.82 4.30 13.40 22.12 11.70
496 Coimbatore, India 21.07 4.35 13.04 21.92 14.12
497 Thiruvananthapuram, India 20.59 3.64 12.44 21.46 12.69
NUMBEO COST OF LIVING INDEX 2016
COUNTRY COMPANY
USA
Ford, DELL, Flextronics, Sanmina-SCI, Delphi, Visteon, Caterpillar, Honeywell, Johnson & Johnson,
Citigroup, Pepsi, Dow Chemical co., Coca-Cola, Accenture, Hewlett-Packard, Microsoft, IBM, Johnson
Controls, Emerson, Terex corporation and Motorola
Japan
Nissan, Mitsubishi, Yamaha, Bridgestone, Hitachi, Komatsu, Panasonic, Toshiba, Mitsui, Marubeni,
Fujitsu, Sumitomo, Mizuho, NEC Corporation
Germany BMW, Daimler, Bosch, Siemens, Bayer, BASF
France Renault, Michelin, Saint Gobain, Alstom,
South Korea Hyundai, Samsung, POSCO, Lotte
Finland Nokia,
Taiwan Foxconn,
China Huawei,
Switzerland ABB
TAMILNADU FORTUNE 500 COMPANIESAt present, 54 Fortune 500 companies have set up base in Tamil Nadu
TAMIL NADU BROAD ECONOMY WITH MULTIPLE SECTORS
Auto & Auto Components
Electronics Hardware
IT & ITeS
Aerospace
Agro & Food Processing
Skill Development
Chemicals & Petrochemicals
Pharma & Biotechnology
Heavy Engineering
Textiles
Product Percentage share of TN in India
Automobiles (cars only) 36% : Chennai is ranked as one of Top 10 Global auto hubs with an annual installed capacity: 14,20,000 (1.42 Million) which can produce one car every 20 seconds (3 cars per minute) and one commercial vehicle every 90 seconds
Commercial vehicles 35%
Auto parts 33%
Leather products 40%
Textiles 33%
Spinning capacity 47%
Power looms capacity 20%
Software & ITES 11.6%
TAMILNADU SECTORS PERCENTAGE
Automobile & Auto Components
CHENNAI INDIA’S LARGEST AUTOMOBILE CLUSTER
CHENNAI AUTOMOBILE CORRIDOR
Airport
Chennai Sea port
Ennore Sea port
Yamaha
Electronic Hardware
TAMIL NADU ELECTRONIC MANUFACTURING ECOSYSTEM
TAMIL NADU ELECTRONIC MANUFACTURING ECOSYSTEMInformation Technology
• SIPCOT (State Industries Promotion Corporation of Tamil Nadu) develops industrial parks andoffers land to the Industries without any legal hassles. These parks are situated at strategiclocations in various parts of the state.
• Infrastructure - Support being given in the form of power, water, connecting roads, drainage, etc.• Single window facilitation for getting statutory approvals through Guidance Bureau within 30
days , for starting up an Industry.
SUPPORT FROM GOVERNMENT OF TAMIL NADULand Allotment
Structured package of incentives
• GoTN sanctions attractive package of incentives for new as well as for expansion projects, whichincludes capital subsidy, stamp duty concessions, fiscal incentives, environmental protectionsubsidy, etc.
• Depending on the investment size, the projects are being classified as Mega, Super Mega andUltra Mega and incentives sanctioned on a case to case basis
TAMIL NADU ELECTRICITY SUPPLY• Power supply: Uninterrupted power supply through two 110 KV feeders from two independent Sub-
stations will be provided.• 24X7 continuous power supply without any power cuts• No electricity tax (5% of charge per KWH) to be paid as per the present policy for 5 years for Super
mega and Ultra mega projects.• Exemption of electricity duty for Captive Power Generation will be given. Most competitive power
tariff (present rate of INR 6.35 per unit kwh).
TAMIL NADU SINGLE WINDOW FACILITATION• Single Window facilitation is offered by the Industrial Guidance & Export Promotion Bureau for
obtaining clearances on Fast track mode .
• Government of Tamil Nadu will assist in getting all clearances within 30 days period after submissionof necessary documents.
• Stable Government and no political instability
• Pro-active government policies
• Sound infrastructure base
• Excellent Port Logistics and Communication
• Strong auto components base
• Abundant skilled manpower
• Peaceful living condition, strong enforcement of law & order
• Harmonious Industrial Relations
• Mature Eco system with more than 50 Fortune 500 companies in the neighborhood
• Very attractive Fiscal incentives
• Lower operating costs & High Profitability
PRESENTATION SUMMATION
WELCOME TO TAMIL NADU
The Land of Abundant Opportunity
Mr. Atulya Misra, IAS
Principal Secretary to Government,
Industries Department,
Secretariat,
Chennai - 600 009.
Tel: 91-44-25671383
Fax: 91-44-25670822
E-mail: [email protected]
URL: http://www.tn.gov.in
Mrs. Shilpa Prabhakar Satish, IAS
Executive Vice Chairperson,
Tamil Nadu Industrial Guidance & Export
Promotion Bureau, (Single window office)
19-A, Rukmani Lakshmipathy Salai,
Egmore, Chennai - 600008.
Tel: 91-44-28553118
Fax: 91-44-28553856
E-mail: [email protected]
URL: www.investingintamilnadu.com
CONTACT DETAILS
THANKYOU
