The Emerging State of Tamil Nadu – India

Tamil Nadu is located at the southernmost part of India and it is the tenth largest State in terms of area and sixth largest by way of population. The language Tamil is widely spoken in the state. Tamil Nadu is considered to be the most urbanized states of India as more than half the population live in the urbans areas of its Capital, Chennai, and in the other cities of Coimbatore, Madurai and Tiruchchirappalli.

The present GDP of the State is around USD 354 billion and has seen a growth rate of 14.6% for the financial year 2022-23 as compared to the previous financial year’s GDP that stood at 8.8%.

The State is considered to have the highest number of factories in India with a total of 38,800 units. Most of the industries include fields such as automobiles, pharmaceuticals, textiles, leather products, chemicals, among others.

With the recent development, the State has been attracting a large number of foreign direct investment. The present Inflow of FDI is about USD 2.17 billion for the financial year 2022-23.  

In a recent survey conducted by the Ministry of Commerce and Industry, for assessment of States/UTs under Business Reforms Action Plan (BRAP) 2020, Tamil Nadu is presently ranked at the 3rd place from the 14th place recorded in the previous FY 2021-22 in the Ease of doing Business Index. There are many factors that contribute towards the growth of Tamil Nadu.

Tamil Nadu introduced a path breaking “single window clearance system”, whereby it became a one-stop portal for securing all business-related approvals, licenses, NOCS and other certifications. The state government integrated more than 200 such approvals across more than 40 state department into a single window clearance, therefore the investor by filling a single application form online can obtain the required approvals. Further the government also provides business support services and expansion assistance. The infrastructure and logistic facility provide further support to the state’s growth plans. The government has set up an Industrial Land Bank Portal that assists the investors to available infrastructure for setting up business operations in the state. 

Tamil Nadu is a hub for major manufacturers in India particularly in the automotive and electronics industries. Tamil Nadu has been among the top 10 auto manufacturing hubs in the world wherein Chennai alone having 1.71 million installed capacity to produce cars. It holds the position of being India’s largest tire manufacturer, first in wind energy production, and second in terms of electronics hardware manufacturing. Tamil Nadu has been ranked 12th globally in terms of total wind energy output.

Among the notable international companies that have set up their units in Tamil Nadu are Accenture, Coca-Cola, Dell, Daimler, Baettr, HP, Pfizer, Ford, Foxconn, Hyundai, Nokia, Ramco Aviation, Renault, Samsung Siemens, Toshiba, Yamaha, BNP Paribas and Saint Gobain, to name a few.

Tamil Nadu also has the highest number of operational special economic zones (SEZs) in India being 40 operational SEZ as of date, 39 industrial clusters, and five industrial corridors. The Chennai Port also known as the Gateway to South India is the second largest port in India.

Cotton, textiles, automobiles, iron, and leather are among the major exports through Chennai Port. Raw cotton, wheat, machinery, iron, and steel make up most of the country's imports. The port has its own extensive railway system. Including a cruise terminal, it has three docks and 24 berths. The Chennai port along with another smaller port called as the Kamarajar Ports has reported to handle 87.3 million metric tonnes of cargo traffic in financial year 2021-22 showing a growth rate of 25.8 per cent as compared to the previous Financial year.

With its growth rate, Tamil Nadu is definitely an emerging economy in India and ready to welcome foreign investors. Should you wish to know more, please reach us at



The above content is provided for informational purposes only. The provision of this article does not create an attorney-client relationship between D'Andrea & Partners and the reader and does not constitute legal advice. Legal advice must be tailored to the specific circumstances of each case, and the contents of this article are not a substitute for legal counsel. 

The Emerging State of Tamil Nadu – India(图1)The Emerging State of Tamil Nadu – India(图2)

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