9% growth every year must to achieve trillion dollar milestones: Santhanam

CHENNAI: Tamil Nadu has to grow by 9 per cent every year to achieve its oft-repeated target of becoming a $1 trillion economy by 2035 or $2 trillion by 2047, said a top industrialist.

While it is safe to say that with a $380 billion GDP, TN can see itself as an advanced and balanced economy posting a reasonable growth, for it to reach the publicly-stated figures would require it to post 9 per cent growth rate annually, said B Santhanam, CEO, Saint-Gobain, here on Sunday.

At a celebratory event to mark the 188th Chamber Day of the MCCI, he said the highly industrialised state churned out a wide range of products from textiles to green hydrogen to electric vehicles and non-fossil and energy, to name a few. Also the state has been welcoming MNCs and other firms from other parts of the country.

Manufacturing, including construction have been the mainstay of TN, Santhanam said, noting that this constituted nearly 40 per cent of the state’s GDP. There has been no evidence anywhere in the world that skipping manufacturing has propelled economic growth. By 2047, 50 per cent of the growth would be manufacturing and construction-led, he emphatically stated.

The business leader also sought to highlight the need to make TN attractive for migrant labour and not as a stop-gap arrangement but to enable them to build their lives here. Historically, the state has seen the influx of non-native population, who have contributed to the overall growth of the state.

Also, instead of competing with neighbouring states, TN must think and compete with nations such as Vietnam, Mexico and Malaysia, he said while presenting the TN Vision 2047, where he outlined key strategies for the state to achieve a $1 trillion economy.

Santhanam also stressed the importance of establishing over 25 world-class universities with integrated tech parks to foster talent and attract $100 billion annually through combined investments. Urban development, including the creation of 10 Smart Cities and leveraging the state's coastline and industrial corridors, was identified as a key component in positioning TN as a global export hub. Innovation through strong industry-academia collaborations and achieving net-zero emissions by 2047 were emphasised as central goals.

Additionally, empowering 10 million women in manufacturing and aligning growth with UN Sustainable Development Goals will propel the state to global leadership, he added.

In his special address, chief guest, S Krishnan, secretary of the Ministry of Electronics and Information Technology, government of India, highlighted the significant opportunities emerging in TN’s semiconductor manufacturing sector.

He emphasised the critical role that high-priority chemicals will play in driving future growth and identified key areas for partnerships between industries to ensure sustainable development.

In focusing on electronics manufacturing, Krishnan outlined the need to direct attention toward product design as an essential area for value addition. He stressed that both as a state and as a nation, there is an urgent requirement for talent development to enhance design capabilities within the electronics and semiconductor sectors.

Krishnan also noted that Tamil Nadu holds vast potential for nurturing startups, particularly in these fields, as the state continues to position itself as a hub for innovation and manufacturing excellence.

Ramkumar Shankar, president, MCCI, in his inaugural address, emphasised India's economic growth, noting its 8.2 per cent GDP increase in 2023-24, with IMF projecting a 6.8 per cent growth for 2024, driven by the country's demographic advantage. He highlighted the challenge of providing jobs for the young population while praising TN’s strong economy, which excels in manufacturing, IT, and electronics.

Significant investments, particularly through the Global Investors Meet 2024, are boosting the state's industrial growth.

The Madras Chamber of Commerce and Industry (MCCI) plays a pivotal role in infrastructure development and industrial expansion, helping TN work towards becoming a $1 trillion economy. Additionally, MCCI supports MSMEs by easing regulatory processes and fostering partnerships, while collaborating with the Tamil Nadu Skill Development Corporation to upskill students for future workforce demands.