The GDP of Tamil Nadu in fiscal 2013 stood at Rs 72,311 crore as compared with Rs 63,903 crore last fiscal

The foreign direct investment (FDI) equity inflows into Tamil Nadu and Puducherry had touched Rs 5,590 crore during Apr-Jul period 2013. It also grew 18.4 per cent during the fiscal 2009 to fiscal 2013.

Making a presentation at the Madras Chamber of Commerce (MCCI’s) Chamber Day here on Monday, Rajan Ekambaram, partner, Ernst &Young (EY) said the FDI equity inflows in Tamil Nadu and Puducherry stood at Rs 15,250 crore in fiscal 2013 against Rs 6,710 crore in the fiscal 2012 and Rs 6,120 crore in 2010 fiscal.

Quoting Reserve Bank of India’s data, he added, the GDP of Tamil Nadu in fiscal 2013 stood at Rs 72,311 crore as compared with Rs 63,903 crore. However, the real GDP growth rate dropped to five per cent in the fiscal 2013 from 7.4 per cent during 2012.

The share of services sector in the state’s total net domestic product (NDP) increased in the last two decades. In the fiscal 2013 it was at 60 per cent, up from 14 per cent in fiscal 1993. Trade, hotels and restaurants were the biggest contributors to the sector.

The state also has a prominent IT and healthcare services sector (particularly known for medical tourism).

The share of industry in total state NDP has reported a decrease of four per cent since the financial year 1993.

Agriculture, which used to contribute 11.9 per cent to Tamil Nadu’s NDP in fiscal 2011 dropped to 10.9 per cent in fiscal 2013. Manufacturing, which contributed 16.5 per cent in fiscal 2011 too dropped to 14.9 per cent. However, in value terms, it increased to Rs 9,616 crore from Rs 8,395 crore.

Electricity, gas and water supply contributed 0.36 per cent to state’s NDP in fiscal 2011 and increased to 1.4 per cent.

While welcoming the state’s decision to bring out Vision 2023 document, which targets around 10.9 per cent growth in the state’s economy, Ekambaram said executing the document was the key. He noted, in late 80s the state industrial growth was around 35 per cent.

“There are some homegrown issues like power and other infrastructure related issues, which the government should focus on. Power, compliance, export opportunities and labour are the key areas the government has to maintain focus besides having a proper dialogue with the industries and other stakeholders to address these issues,” he said.

source: http://www.business-standard.com / Business Standard / Home> Economy & Policy> News / by BS Reporter / Chennai – September 30th, 2013