Why Tamilnadu

  • Home
  • Why Tamilnadu

TAMILNADU – The land of abundant opportunity

Tamil Nadu ranks third in the country in total foreign direct investment (FDI) with Rs. 22,582.64 crores, next only to Maharashtra (Rs. 36,602.41 crores) and Delhi (Rs. 30,303.79 crores). The State's investment constitutes 9.12 per cent of the total FDI in the country.

There is a quantum jump in FDI proposals in the last four years. The total proposals, which were 1,724 in 2000 and worth Rs. 18,940.898 crores, increased to 2,656 (Rs. 22,582.64 crores) by August 2004, according to Statewise details published by the Centre for Monitoring Indian Economy (CMIE) and the Secretariat for Industrial Assistance in the Department of Industrial Policy and Promotion, Union Ministry of Commerce and Industry.

Tamil Nadu has become a "favoured destination for foreign investors due to availability of world-class facilities" including quality infrastructure, uninterrupted power supply and skilled labour.

Competitive advantages: Why Tamil Nadu?

  • Stable Political climate and Investor-Friendly government
  • Tamil Nadu # 1 in skilled manpower availability in India – Lowest Manpower costs in India and Cost of Living lower in Chennai than other competing locations. Peaceful labour climate - Man-days lost due to labour unrest is 0.7%.
  • “fDi” magazine of Financial Times rated Tamil Nadu as the “Asian region of the Future 2005-06” with maximum FDI potential.
  • Infrastructure development of Chennai rated better than other states/cities by independent site evaluation studies of Ford, World Bank, BMW, Foxconn, Stanchart, Nokia, Flextronics, etc.
  • Excellent communication Infrastructure: Chennai # 1 in Bandwidth availability: 13.52 tbps – largest in India
  • Power: Available capacity of 13276 MW and Quality of Power better. Cost of power is cheaper. No Power cuts
  • International Connectivity: Chennai has two modern Sea-ports.
  • Air connectivity: 270+ passenger direct flights and 28 cargo flights per week making it largest in South India.
  • Chennai # 1 in Health care facilities
  • Social Infrastructure: Lower cost of Living, High quality Bungalows, modern apartments along sunny beaches, Excellent schooling facilities and lowest crime rate

Status of IT Industry

  • More than 1450 IT exporter Companies.
  • More than 160,000 professionals employed.
  • The growth of the software industry in Tamil Nadu has been spectacular:
Fiscal Year No. of Companies Exports (Rs. Millions)
1993-94 10 20
1994-95 23 120
1995-96 34 370
1996-97 69 1610
1997-98 108 3930
1998-99 166 12460
1999-00 596 19140
2000-01 766 31160
2001-02 866 52230
2002-03 936 63160
2003-04 866 76210
2004-05 1266 107030
2005-06 1427 141150

Hardware exports from Tamil Nadu during 2001-2002 have been Rs.482 crores.

Studies by Harvard University, USA (Papers # 728, 729 and “Readiness for the Networked World: A quiet Information Revolution in Tamil Nadu) at www.cid.harvard.edu/india/papers.htm have predicted that Tamil Nadu is well poised to emerge as the top IT State in India as well as a gateway to SE Asia.

Copyrights © 2025 Land & Buildings. All Rights Reserved. Designed by