Tamil Nadu emerges as top Investment Destination

India is believed to be one of the potential investment destinations among global investors despite many hurdles like political uncertainty, shortage of power supplies, etc. At present, the country has a promising potential in terms of growth and diversification possibilities and offers high growth potential practically in all areas of business. But in 2020, India saw its lowest in 5 years in fresh investments due to the extended pandemic-included lockdown.

India accounted for a total of  Rs 97,859cr fresh investments in the first quarter of  FY 21, out of which Tamil Nadu, constituted about 18.75%

17 MoUs

The Tamil Nadu government had signed 17 MoUs (memorandums of understanding) with investors on May 27, 2020, which gave a ₹18,236 crore fillip to its investment pipeline in the quarter between April and June.

• While private sector investments, on the whole, collapsed to just 39.1% of total investments in the quarter, a ratio last seen in the first a quarter of 2013-14, Tamil Nadu attracted large players like Daimler India Commercial Vehicles for a ₹2,277 crore project at Oragadam and the largest power project announced in the quarter (a 750 MW gas-based plant with an outlay of ₹3,000 crore)
• Two private sector projects worth ₹2,900 crores in the State for producing windmill equipment and semiconductor chips, accounted for a bulk of the 16 machinery sector investment proposals worth ₹3,678 crores across the country

Data Centers

The State is also host to three of the five data centers envisaged to come up in the country at a total investment of ₹7,400 crores. The other two data centers are proposed in Maharashtra, which was second to Tamil Nadu with fresh investments worth ₹11,228.8 crores. Maharashtra had signed 12 MoUs with firms from Singapore, South Korea, and the U.S. through a virtual Magnetic Maharashtra summit.

Tamil Nadu - Key Indicators