After GIM, it’s time for action

The two-day Global Investors’ Meet 2024 of Tamil Nadu held in Chennai from January 7 saw done deals that would translate to an investment pour of Rs 6.64 lakh crore with a potential generation of 27 lakh jobs. The entire state machinery swung into action, making a splash in all possible platforms to get the buy-in of businesses to either establish their presence or expand their ongoing operations. Thus, it was no surprise that the event saw the participation of global brands and renowned business leaders, who warmed up to the pitch of TN being an ideal investment destination.

Companies from diverse sectors, ranging from automotive to energy to mobility to deep tech and more made a beeline to the state as they formalised their investments by signing memorandum of understanding (631 MoUs were signed in the just-concluded GIM). That TN’s industrial ecosystem is robust enough to straddle traditional and new-age businesses (electronic goods manufacturing, green energy, non-leather shoes, motor vehicles, electric vehicles, aerospace and defence, data centres, global capability centres, and IT), is reflected by the varied nature of the companies, which have pledged to invest copiously. TN’s growth story has been directed towards chief minister MK Stalin’s dream vision of emerging as a $1 trillion economy by 2030.

Nine partner countries – the US, UK, Japan, Australia, France, Germany, Denmark, Singapore and South Korea, marked their presence in this year’s GIM, signifying the confidence shown by the multinationals, which are always scouting for promising business opportunities. Over the last two decades, TN has done well to build its educational infrastructure, thereby earning the right to be recognised as a talent hotspot. It doesn’t end there. Besides the labour advantage, the port, airways and road connectivity, single window clearance to facilitate the ease of doing business (rank 3 from 18 in 2018) and the spread of industries to tier II, III locations have worked in the favour of TN, which is consciously attempting for dispersed growth. This aspect has been captured by Vietnamese automaker VinFast, which has lined up $2 billion for its upcoming electric vehicle factory in TN, that will mark the company’s first foray into India. VinFast has committed $500 million in the first phase of construction and plans to transform the region around port city of Thoothukudi into a first-class EV production hub, with a factory capacity to roll out 150,000 cars annually. Two more Vietnamese entities from the non-leather footwear industry are finalising plans to mark their presence deep south in TN, where the rural employment generation would be upwards of 10,000 people.

Some of the other big ticket investments announced at the GIM, the first one organised by the DMK government, included Tata Power (Rs 70,800 crore) and Adani Group (Rs 42,768 crore). If one were to go by the sheer size of deals closed in the third edition of GIM, then it has been a phenomenal success, outshining the previous two editions anchored by the AIADMK governments under two CMs – J Jayalalithaa and Edappadi K Palaniswami.

But TN has no time to rest on its performance with Vibrant Gujarat underway. The competition is intensifying between states and it is no longer about numbers since an enabling business environment is what will determine the ultimate success of the MoUs inked. Even if 50 per cent of the investments materalise, it would contribute to the growth aspirations of the state. While new policies and reports were released, it is the call to action that will reflect the true intent of the political stakeholders.