Getting back investments to TN

Tamil Nadu’s Global Investors Meet (GIM) 2019 concluded last week with investments of over `3 lakh crore committed to the state. This comes shortly after Defence Minister Nirmala Sitharaman inaugurated the defence corridor aimed at making the state a major defence manufacturing hub. The state also unveiled its aerospace and defence manufacturing policy at the GIM.

The big-ticket investments, if realised, could usher a return to form for Tamil Nadu, which despite its infrastructure, skilled workforce and other advantages, has been losing out on investment to its neighbouring states in recent years. Some of this could be attributed to a perception of instability in the immediate aftermath of the then Chief Minister 

J Jayalalithaa’s death in 2016. However the state has since rallied, with industry acknowledging that the state government was actively wooing and supporting business efforts. 
In this context, the number of deals and the investment commitments made have come as a boost to the state.

The government says that the investment, if realised, could translate into 10.5 lakh jobs. The challenge, however, remains of seeing that these commitments are indeed realised. In GIM 2015, investments of some `2.42 lakh crore were committed. However, only about 25 per cent of that—little over `62,000 crore—has been realised. Difficulties in realising investment promised is not a problem unique to Tamil Nadu. Virtually every state faces such issues, once the dust settles on investment meets.

Further, there is a danger in pursuing investment at the cost of people’s rights and environmental impact—something that states (and countries) tend to brush aside in the quest to become attractive business destinations. The Tamil Nadu government will have to ensure that it continues to pursue these commitments and ensure that as many of them are realised as is possible, while keeping the best interests of the people in mind.