CHENNAI: Tamil Nadu has an estimated untapped export potential of Rs 1.6 lakh crore ($22 billion) and there is a need for sector-specific export-oriented intervention to accelerate overall export growth, according to the Tamil Nadu Export Promotion Strategy 2021. The five-year strategy was unveiled by Chief Minister MK Stalin on Wednesday as TN targets a $1 trillion economy by quadrupling its exports in nine years.
Drawing a comparison to ‘Made in India’ products that are available across the globe, the State should work towards ensuring ‘Made in Tamil Nadu’ products, too, are on par with them, said Stalin, unveiling the strategy at the Tamil Nadu Exports Conclave, held as a part of events commemorating the 75th anniversary of Indian Independence.
Meanwhile, 24 memoranda of understanding (MoU) were signed which would provide investments worth Rs 2,120 crore and 41,695 jobs. Among them, 14 MoUs pertain to export-oriented units with a cumulative investment of Rs 1,880.54 crore creating 39,150 jobs, and the remaining 10 are on behalf of the MSME department, with a Rs 240 crore investment, providing 2,545 jobs.
The investments have been made in textiles, chemicals, IT/ITES, steel, leather apparels, and general manufacturing sectors, at various locations in Chennai, Kancheepuram, Tirupattur, Krishnagiri, Madurai, Salem, Tiruchy, Thanjavur, Thoothukudi, Dindigul, and Tirunelveli districts, ‘ensuring a balanced growth across the State’.
Stating that TN will adopt a two-pronged approach — export promotion and export diversification — to achieve its aim of a $1 trillion economy by 2030, the CM said TN stood at number three in India with Rs 1.93 lakh crore exports, taking 8.97 per cent share in national exports. “We should not be satisfied with this. The export percentage should go up every year,’’ said Stalin.
Industries asked to find new avenues for export
The State is setting up an Export Promotion Council under the Chief Secretary to boost exports, said the Chief Minister, while also urging the industry to tap new avenues for exports, including electric vehicles, batteries, renewable energy, aerospace, food processing, and electronics, for the same. TN is also looking at developing two economic employment enclaves, in Mannasellore and Thoothkudi, in one phase.
The CM also highlighted that the State has identified 10 export hubs where infrastructure projects will be strengthened by reimbursing 25 per cent of the project cost, subject to a ceiling of `10 crore per hub. The idea, as per the strategy, is to decentralise export potential to develop districts as export hubs and generate jobs. Besides, the MSME Trade and Investment Bureau (M-TIPB) has also signed a pact with Flipkart/ Walmart and the Indo German Chamber of Commerce (IGCC).
The MoU with IGCC will facilitate linkages, interacting, technology collaboration programmes,and export opportunities for MSMEs in the State. Official sources said this will boost MSME skills and make them globally competitive, thereby helping them get a higher value for their products. The MoU with Flipkart deals with promotion of e-commerce among MSMEs through a supplier development programme.
The Chief Minister also released an MSME Exporters Handbook and gave land allotment orders to the first two companies for an exclusive park, catering to the needs of the polymer industry, in Voyalur near Ponneri. Also, Ranjit Pratap, chairman of Indo-German Chamber of Commerce, along with the German consul general, signed an MoU with the State government to upskill MSMEs in the State to help them produce goods meeting international standards. Meanwhile, the Cotton Corporation of India has handed over a letter to Stalin to set up cotton depots. This comes after the CM cancelled the one per cent market cess on cotton and waste cotton.