Welfare measures and distributed growth are behind Tamil Nadu’s economic growth, says Industries Min TRB Rajaa

GDP growth in doubt and highest among top states for TN in FY25. Is it just production or something else driving growth?

Targeted welfare measures, and not some general measures, will give us really good results. Mobility is everything and if half your population gets free mobility (through CM’s free bus travel program for women), that’s a huge boost. Nearly 1.5 crore women receiving ₹1,000 every month have all contributed to GDP growth. So every rupee spent on social services goes back to the public purse, and the wheels of the economy keep turning. It takes decades of work before the results become visible.

The manufacturing sector in particular appears to have outperformed in FY25. What are the drivers besides electronics?

In Tamil Nadu, we are in a position where we can produce everything under the sun. Our capabilities are enormous. The next point of attention is R&D. We consistently focus on high-quality, high-value manufacturing systems and jobs. Our push in education has given us enormous human capital, and these are high quality talents and that is why we are focusing on emerging sectors for this pool.

We have seen successive shipbuilding investments coming into TN. What is the potential you see?

For every job a shipbuilder creates, 7 secondary jobs are created. It is a sector with one of the largest multiplier effects. We have the second largest coastline in India and the blue economy needs to be tapped in a big way. And we have not played an incentive game with the MoUs for shipbuilding, it is more for the infrastructure and the talent pool. We gave the companies a true picture and took them to all these destinations. They were happy with what they saw, the speed of administration and decision-making. This will be a complete transformation, especially for Thoothukudi. As an anchor company, Vinfast helped us position the neighborhood.

What has been the impact of the tariffs on the export-heavy TN economy?

We are a very resilient state. Our bets and sectors are varied. I think we can control the storm. Right now the textile sector is taking a hit and we have asked the Union to intervene and help. We hope they will do more to help them. The fishing sector also needs help. The Union has said that UK free trade agreements will help and we agree, but the US is such a huge market that we cannot ignore it. Tamil Nadu’s investments are also coming from different regions and not just the US. I’m also going to Korea after this.

Will Tamil Nadu have a fantastic existence? Are you looking for one?

Our pitch for Fabs was never for jobs, but always for national security, because a Fab on the northern borders is not a very smart move. It’s also because we have the production ecosystem here that is necessary for the Fabs. We definitely still want a Fab and we are working around the Union blockade. We are working on setting up a small training ecosystem to train our design talent. A Fab coming to Tamil Nadu will have much better productivity than any other state in India.

What about the GCCs? Other southern states are leading the way in terms of the social infrastructure required for this.

I think as a state we are more focused on the physical and mental well-being of employees. Tamil Nadu’s idea of ​​leisure is slightly different. We have more good food, music, art and culture, and relaxation. And lots of outdoor life, hiking, forests and adventure tourism. These are all things we are working on to add value to the GCC employee. I think young people will need this particular leisure activity to take their minds off the stress of work. Regarding the shortage of commercial space, we are also looking at expanding the FSI. Certain parts of the city may get FSI relaxation. We have exerted pressure from the industry department side

There has been intense competition from other states in the field of major investments lately?

Tamil Nadu knows what it wants. We will be very selective in the types of investments and jobs we stimulate. Today we are in a position where we can choose our investors. We are not a desperate state, but a very picky one. We also have limited resources when it comes to land, we can’t just spend money on incentives. When we sign MoUs, we convert. That’s why no other state comes close to our 80 percent conversion rate.

What about data center projects? Are we seeing a lot of them going to other states lately?

A few projects going to other states mean nothing. Tamil Nadu is the largest gateway to India with seven submarine cables landing in Chennai. There’s also a new one coming in the south. We are looking for high-quality green data centers at certain locations, so that we can also balance energy and water needs. Data centers also don’t provide you with the number of jobs that some other high-end investments do.