$1 trillion economy: TN yet to fast-track star team proposals

CHENNAI: Formed in June 2021, the State government’s august Economic Advisory Council was meant to be a brain trust to advise the Chief Minister on measures to be taken to grow Tamil Nadu into a $1 trillion economy, “on a decidedly different model, away from that of the Centre to ensure that the benefits of the growth reached all segments of the society”.

The anticipation was justified, as the council boasted having some of the brightest experts on board: Nobel laureate Esther Duflo, former RBI Governor Raghuram Rajan, former Chief Economic Advisor (CEA) Arvind Subramanian, former finance secretary S Narayan and leading development economist Jean Drèze, who would work with the then State Finance Minister PTR Palanivel Thiagarajan, himself an expert with a clear view of what was required to achieve the goal.

However, years after the much-hyped launch, the progress has been limited though the council has submitted reports on various sectors, including crucial ones like restructuring the finances and governance of power utilities to save them from crippling financial crisis and revival of MSMEs.

For instance, former CEA Subramanian was asked to do a detailed strategic study of the finances and governance structure of Tangedco and Tantransco. The electricity board reforms report was submitted to the stakeholders in July and has been appreciated. But, action has been taken only on some aspects of the report.

Similarly, an expert committee comprising industrialists, banking and financial experts, and government officials was tasked with formulating schemes to revive MSMEs. Five reports, including one on tourism and small-scale industries, prepared with the assistance of Boston Consulting Group, were submitted but they are yet to take off.

Among the silver linings are the Ennum Ezhuthum initiative, to ensure foundational literacy and numeracy by 2025, and efforts taken to disperse industries to tier II and tier III locations.

Economic Advisory Council not entirely a lost cause

Under the Illam Thedi Kalvi initiative immediately after COVID-19 to enable kids of kindergarten to Class 3 to catch up on their missed classes, 2 lakh volunteers were enrolled.

This has been a marked success, even academically recognised. The next stage is the Ennum Ezhuthum programme for classes 3 to 8, which is underway, where district collectors are spearheading the initiative.

Sources said five to six IT parks are coming up in the tier II and III locations. The furniture park in Thoothukudi at an envisaged investment of Rs 1,000 crore is taking shape, giving opportunities to the labour-intensive trade to compete with imports from countries like Malaysia and Indonesia.

To reboot the leather sector, especially in Ambur, the council recommended vertically setting up common facilities. A year later, two such facilities are coming up at SIPCOT, apart from a leather park at Vellore, said a highly placed source.

Upskilling of MSMEs and providing loans to scale up their operations were some of the other recommendations. There are also plans to focus on technical textiles (fire service uniforms, apparel marketing as boutique, oil rig uniforms, replacement wear) that would require upskilling and providing value-added services.

This idea mooted by the former RBI Governor may be a reality soon, as the industry has realised its potential and the export opportunities for industrial belts of Tirupur, Karur, Ranipet and Bhavanisagar, among others.

Sounding an optimistic note, sources told DT Next that things could change soon, as two of the high-profile members of the council, Raghuram Rajan and Arvind Subramanian are set to take part in a panel discussion during the two-day Global Investors Meet, beginning in Chennai on January 7.

They would hopefully enumerate steps for the $1 trillion economy goal, serving as an ideal opportunity for the authorities to get their act together.