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Investment Opportunities in Tamil Nadu

Investment Opportunities in Tamil nadu

Tamil Nadu is one of the well-developed States in terms of industrial development. The State Government is focused on stimulating further industrial development, attracting investment, facilitating new manufacturing capacity and enabling global manufacturing competence and competitiveness of local industry. Tamil Nadu has emerged as a front ranking State in attracting investments.

Software & Electronics

Tamil Nadu has witnessed substantial growth in IT, ITES, BPO and IT Hardware manufacturing sectors. The number of Software Units in the State is also growing rapidly. The rapid rise in the number of national and international players that have chosen to establish their business establishments and manufacturing facilities as well as the expansion of the activities of the established firms in this State is a firm indication that Tamil Nadu has emerged as a preferred destination for domestic as well as foreign direct investment. Leaders in the Indian IT sector like Tata Consultancy Services (TCS), Infosys, Wipro, Satyam, HCL, Patni Computers, I-Flex, Polaris and Hexaware as well as a galaxy of international majors - Accenture, Verizon, Xansa, Office Tiger, Standard Chartered Bank, ABN Amro, Alcatel, Cognizant Technology have established their operations in Tamil Nadu.

Agro and Food Processing

Tamil Nadu has rich resource endowment. Fruits such as Mango, Banana, Citrus Fruits, etc., and vegetables & spices are abundantly available. Food Processing & Floriculture identified as thrust sectors by State Government for special incentives. Owing to the ideal climatic conditions a strong agro-based food industry has emerged in the state. The state is a world leader in agricultural production with a high yield per hectare of sugarcane, rice and groundnut.

Chemicals and Petrochemicals

The chemicals industry has grown rapidly in India and overseas. The state traditionally has a strong base in chemicals industry. Manali, situated on the outskirts of Chennai, has emerged as a major petrochemical complex. Leading Producers like Orchid, being the third largest manufacturer of sterile cephlosporin, Dadha Pharma, Malladi, Citadel, etc. have set up in Tamil Nadu. Tamilnadu is the ideal location for: (i) contract manufacturing (ii) global sourcing base(iii) process engineering for products going off patents (iv) manufacture of generic and other bulk drugs & formulations. Petrochemical industry in Tamilnadu is in the threshold of rapid expansion.


Tamil Nadu is rich in bioresources. The variety of geographical terrains in the State provides tremendous biodiversity rarely seen in any other single State. The forest, agricultural and plant resource base of the State are both large and diverse and represent great market opportunity for biotechnology products. There are more than 5,000 species of flowering plants and the forest cover in the State spreads over 22,500 sq.kms. The State also has one of the largest coastlines in the country which again presents opportunities for marine biotechnology. The State is also fortunate to have a pool of experts in various areas of biotechnology with experience in commercialisation of biotech products. Tamil Nadu is thus well-placed in terms of human resources to exploit the opportunities in biotechnology. Investment opportunities exist in all the four segments of biotechnology, namely, (i) Medical / Human & Animal Healthcare; (ii) Agriculture; (iii) Food; (iv) Environment; and (v) Industrial Products

Automobile Sector

The state has a well-developed automotive and auto component industry. It is the hub of Indian automobiles industry. Several automobile and automobile ancillary units are located in Tamil Nadu. It has manufacturing facilities across the automotive spectrum from tractors to battle tanks. Global auto majors like, Hindustan Motors and Mitsubishi have commenced production plants. Ashok Leyland and TAFE have set up expansion plants in Chennai. Fortune 500 companies such as Hyundai and Ford have established manufacturing facilities in the state.

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