Small Scale Industries - TN leads

Government data consistently show that investment of this sort has grown at a high rate in the last few years in Tamil Nadu ­ in terms of number of investors as well as the total amount. The state has bucked the trend in the Micro, Small and Medium Enterprises (MSME) sector. In 2012-13, there was a 30% growth in new units, showing that capital formation in the sector is growing rapidly. Tamil Nadu boasts of the highest number of new units in the MSME sector.

When micro, small and medium enterprises intend to invest in new units or in expansions, they file an investment intent with the Central government if the amount exceeds Rs. 10 crore. After finishing the project, they file a completion report. Figures show that in recent years Tamil Nadu's already high performance has become stellar -in investment intent as well as project completion.

Tamil Nadu has always been an exceptional performer in skills development, which is a key element in industrial development. During the election campaign, Narendra Modi spoke about how rest of India can learn from Tamil Nadu's record in this. The current state government has focused on the SME sector. It has launched many schemes and given new life to several initiatives in this sector. Among the innovative programmes it has launched is the NEEDS programme. In this, the government arranges a collateral-free loan of Rs1 crore for start-ups. The government subsidy of 25% is given after the unit has started up and the loan has been repaid.

To remove persistent backwardness in certain districts such as Ariyalur, as well as in pockets in developed districts like Trichy, the government has come out with a scheme called the State Balanced Growth Fund implemented through the state planning commission. As a result of all these efforts by the government, we are seeing a new energy across the state coming from budding entrepreneurs.

In terms of overall industrial investment intent, Tamil Nadu has retained its position in the top five states. It is inevitable that the state's economic performance coincides with the overall health of India's economy. Now that the nationwide down cycle is over and investment seems to be picking up, prospects for Tamil Nadu also appear bright.

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