Tamil Nadu Wants To Be A $1 Trillion Economy, Govt Hires BCG For Developing Road Map

The government of Tamil Nadu has chosen Boston Consulting Group to create a strategy and plan for achieving a $1 trillion economy in the state.

With a strong manufacturing base and large services sector, Tamil Nadu is the second largest State economy in India and ranks third in GDP per capita. It boasts the highest level of urbanisation and industrialisation in the country.

Its export industry is also significant, as it accounts for over 9% of India's total exports, making it the third largest exporting State.

The Chief Minister of Tamil Nadu, M.K. Stalin, wants to make the state a $1-trillion economy by 2030 to contribute significantly to India's goal of reaching a $5-trillion economy. This would require enhancing the current growth rate, an increase in investment, and better infrastructure.

The Tamil Nadu Infrastructure Development Board, responsible for infrastructure development, selected Boston Consulting Group after a worldwide bid to develop a comprehensive plan and road map, according to sources.

The assignment aims to create a vision and strategy for economic development and identify key factors necessary to achieve it.

The priority sectors and sub-sectors, along with their GDP and job targets until 2030 will be determined. The task is expected to be completed within six months.

"I have set a target for Tamil Nadu to become a 1 trillion-dollar economy by 2030. Today, we are nearly a 300-billion-dollar economy. We will need to register double-digit growth every year until 2030 through a multi-pronged strategy if we are to grow three-fold", the Chief Minister had said in an interview last November.

He mentioned two industrial corridors as key to his plan.

"The Chennai Bangalore Industrial Corridor supported by JICA will cater to industrial development between Chennai and Hosur. The Chennai Kanyakumari Industrial Corridor (CKIC) supported by the Asian Development Bank will promote port-based economic development."

He also spoke about the semiconductor manufacturing.

"Tamil Nadu ranks second in India for computer, electronics, and optical products manufacturing accounting for 18 per cent of national production; it ranks fourth in terms of electronic exports, which were worth 2.2 billion dollars in 2021-22. Tamil Nadu sees semiconductors as a 1 trillion-dollar market opportunity. The semiconductor value chain requires high-quality infrastructure."