$1 trillion economy: Guidance Tamil nadu to focus on outward investments


Guidance Tamil Nadu, State’s nodal agency for investment promotion and single window facilitation, has been focussing on inward investments and helping overseas investors set up their operations in the State. It is now looking outward investments as the State has set a target of achieving $100 billion in exports by 2030 from the current $26 billion. This is in alignment with the State’s target of becoming a $1 trillion economy by 2030. Its GDP was $300 billion in 2020-21.

Guidance is setting up an export cell to study opportunities that are emanating and help exporters tap them, said a senior Government official. It will also help Guidance to identify export-focussed companies which can then be attracted to set up base in Tamil Nadu, he added.

Recently, Tamil Nadu Export Promotion Strategy 2021 (EPS 2021) was released that said the State’s strengths in exports and established infrastructure for exports serve a ‘bedrock’ for attracting investors to the State. This, in turn, acts as a catalyst for trade. There is a need for an export promotion strategy to focus on export diversification and export dispersion — identifying districts as export hubs.

The State’s export basket is diversified with the top ten products contributing 70 per cent of the export share. Some studies put the State’s untapped export potential of ₹1.6 lakh crore.

Detailed study

Guidance’s export cell’s agenda will research on demand for various products; the markets to be tapped and do match making by reaching out to potential buyers to do the tie-ups. A detailed study needs to be done to educate the exporters.

A portal will be developed in this regard. To increase exports, it is important to reach out to newer markets. Footwear or textiles need to go up the ladder with higher value-added products.

Sectors such as technical, medical and industrial textiles are major areas for target, said sources.

To enable more exports, the support infrastructure like ports will also be improved and major logistics players will be roped in. Recently, Dubai’s DP World signed an MoU with the State government to set up an Integrated Chennai Business Park of DP World at Vallur (₹1,000 crore and 1,100 persons). Many more such investment is required.

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