Strap: This edition will mark the first GIM under the DMK and the government of chief minister MK Stalin
CHENNAI, Jan 6: Chennai is rolling out the red carpet for global investors and big industrialists as it prepares to host the third Global Investors Meet (GIM) on January 7 and 8, 2024.
Tamil Nadu’s (TN) pitch to investors comes amid stiff competition from states such as Karnataka, Telangana, as well as Gujarat, Uttar Pradesh, and Maharashtra. In fact, TN’s GIM is slated to be held just ahead of the Vibrant Gujarat summit, scheduled between January 10-12.
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Tamil Nadu is pulling out all stops to woo investors, with roads that lead to the GIM venue at Chennai Trade Centre at Nandambakkam decked up to welcome delegates.
This will be the third edition of the GIM in the state. In the first edition under then chief minister (CM) Jayalalithaa in 2015, 98 memorandums of understanding (MoUs) were inked, with potential investments of over Rs 2.42 lakh crore. In 2019, 304 MoUs were signed at GIM-II, which attracted potential investments to the tune of Rs 3,00,431 crore during the tenure of then CM Edappadi K Palaniswami.
This edition will mark the first GIM under the DMK and the government of chief minister MK Stalin, who has set a target of attracting Rs 5 lakh crore in investments. The CM will also unveil his government’s road map to make Tamil Nadu a $1 trillion economy by 2030. Tamil Nadu’s gross state domestic product level during 2023-24 is estimated at $354 billion
Ahead of the GIM, Stalin led roadshows in Japan, Singapore, and the UAE to draw investments to the state. In Japan, he visited the century-old Komatsu company’s factory in Osaka.
“Tamil Nadu is witnessing an increasing inflow of investments since 2021, as the state government enjoys the respect and goodwill of investors and an excellent industrial ecosystem. I envision making Tamil Nadu a $1 trillion economy by 2030, and the growth engine of India’s economy,” Stalin said ahead of GIM.
The TN government is also expected to unveil a ‘Semiconductor and Advanced Electronics Policy’ with a specific focus on Hosur, Coimbatore, and Trichy, to attract new investments. Tamil Nadu is currently the country’s leading electronics exporter, with exports worth $5.37 billion last year (2023). The state has ambitious plans to grow this to $8 billion in the current year.
Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce, TRB Rajaa, in a note said: “Tamil Nadu is India’s most urbanised state and the second largest state economy in the country. It is home to 50 percent of the country’s women workforce. Committed to diversity and sustainability, Tamil Nadu is leveraging its industrial strengths while investing in R&D to build a future rooted in technology and innovation.”
The GIM will witness the participation of nearly 50 countries, including Japan, Australia, the United Kingdom, Germany, the United States, Singapore, France, Denmark, South Korea, and Taiwan. Some of the distinguished participants include: Chris Miller, author of the best-selling book ‘Chip Wars’; Somanath S, Chairman, ISRO; Anand Mahindra, chairman, Mahindra Group; Bhavish Aggarwal, Founder and CEO, Ola; Raghuram Rajan, former RBI Governor; Arvind Subramanian, former chief economic advisor, and others.
Many industrialists have expressed high expectations from the GIM. The Association of Indian Entrepreneurs (AIE) Chairman, KE Raghunathan said, “In Tamil Nadu, GIM happens once every four years. This year, we have high expectations from emerging sectors that are new to Indian entrepreneurs.”
He emphasised the importance of local businesses benefitting when large-scale industries are established.
“We anticipate the introduction of newer technologies, with companies and corporates coming from various countries. It’s also crucial that the government ensures that their requirements are communicated to local entrepreneurs. There should be a downstream technology transfer, and development of local partnerships with MSMEs — the government must focus on that. The government should concentrate on creating employment opportunities for educated and skilled labourers,” said Raghunathan.
He highlighted that while common infrastructure like ports, airports, and roads are well-established in the state, basic infrastructure, such as modernising industrial estates to minimise losses during natural calamities like flooding, is lacking.
“The recent flooding in Chennai had caused disruptions in industrial estates located in Chennai, Kancheepuram, Tiruvallur, and Chengalpattu, lasting for more than 10-15 days. These disruptions in industrial areas / parks should be curbed on priority” said Raghunathan.
Further, experts, including retired IAS officer MG Devasahayam, were sceptical about the conversion rate of MoUs signed at the GIMs. “The conversion rate will not be more than 10-15 percent. The priority of the government is to create a corruption-free, investment-friendly atmosphere with efficient single-window clearance, and a well-trained workforce,” said Devasahayam, and added that investments should be spread across the state and not concentrated in urban centres like Chennai, Coimbatore, and Madurai.
White paper on TN finances
In 2021, an Economic Advisory Council to the Tamil Nadu Chief Minister was formed, comprising leading experts such as Nobel laureate Professor Esther Duflo, former RBI Governor Raghuram Rajan, former chief economic advisor Arvind Subramanian, development economist Professor Jean Dreze, and former Union finance secretary S Narayan. Palanivel Thiagarajan, the then TN finance minister who formed the council, also released a white paper on Tamil Nadu’s finances.
The white paper revealed a decline in the annual growth rate of the Gross State Domestic Product (GSDP), from 10.15 percent in 2006-11 to 7.22 percent in 2016-20. Thiagarajan had also expressed concern over the state’s revenue deficit situation and highlighted the decline in the growth rates of the industrial and services sectors, which saw a significant slowdown in recent years, raising concerns of TN losing ground to other states.
The DMK-led state government is pinning hopes on the GIM to enhance the image of TN as an industry-friendly state. The southern state contributes significantly to India’s manufacturing sector, and is now seeking increased investment in electronics manufacturing, technical textiles (textiles with industrial applications), footwear, and electric vehicle (EV) manufacturing. The state is also keen on tapping into the potential of the ‘China-plus-one-plus-one’ approach of companies, and the GIM may provide answers to some of the questions regarding the state’s potential. (PTI)
