Economic survey credits TN policies for industrial growth

CHENNAI: The Economic Survey 2024-25 tabled in parliament on Friday credits Tamil Nadu’s industrial promotion.
Discussing the link between state-level business reforms and industrial development, the document laid out the case study of Tamil Nadu’s diversification to the non-leather sector.
“Tamil Nadu is a leader in the traditional leather sector and is now championing the growth of non-leather footwear. The state contributes to 38% share in India’s footwear and leather products output, contributing to about 47% share in India’s total leather export. This sector generates more than two lakh employment,” it stated.
It further noted initiatives like developing industrial estates, efforts to attract foreign investors. “Guidance (state investment promotion agency) actively liaised with Taiwanese agencies to strengthen ties with potential investors in the footwear sector. It established contacts with major contract manufacturers of Nike like Pou Chen, Hong Fu, Taekwang and ChangShin, positioning Tamil Nadu as an attractive destination for manufacturing,” the survey noted.
It mentions the state govt’s customised incentives packages, bringing out publicity material in foreign languages like Mandarin, Japanese and appointing dedicated investment facilitator for each investor, single window for clearances. “This has enhanced the reputation of TN as an investment friendly state,” the report noted.
Efforts through Guidance Tamil Nadu have set benchmarks for investment facilitation and global outreach, state industries minister T R B Raaja said in a X post reacting to the development.
“It is a moment of immense pride for Tamil Nadu as the economic survey has recognised our remarkable success in championing the growth of the non-leather footwear sector,” he said.
State-level policies play a crucial role in shaping the economic growth patterns across Indian states and states that implemented significant economic and administrative reforms during the reform period reaped the benefits of industrial expansion, it said citing academic research.
Factors like regulatory environment, infrastructure development and state-level reforms are shown to significantly influence industrial growth patterns.
The survey noted that ease of doing business has positively contributed to industrial activity in Gujarat, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh among other states.