CHENNAI : Five key industries, including information technology, that contribute significantly to the gross domestic product of Tamil Nadu performed well in the six months ending March, despite shortfalls with regard to the infrastructure.

Leading the pack of five was the IT industry with 20 per cent increase in its revenue and 20 to 30 per cent rise in its overseas billing during the period. This was revealed by a business outlook survey conducted by the Confederation of Indian Industry, Southern Region, during October 2005 — March 2006.

Besides revenues and overseas billing, employment generation in the IT industry grew by 25-30 per cent with the growth in overseas billing expected to be 30 per cent and growth in revenues 25-30 per cent.

Erratic power supply

Complaining about the erratic power supply and poor quality roads, the industry urged the government to abolish the Fringe Benefit Tax and appealed to educational institutions to create course curriculum meeting its requirements.

Notwithstanding the "severe infrastructural bottlenecks," including unreliable power supply, ineffective waste disposal facilities and water scarcity, textile industry increased its export by 25-30 per cent. Capacity utilisation during the period increased by 5-10 per cent.

It was estimated to grow at 25 per cent up to September, the rate at which it grew during the study period.

The automotive industry performed well with 10-15 per cent increase in production, sales and the value of production. The export of automotive components increased by 5-10 per cent. The industry outlook up to September is promising with 10-15 per cent increase in production, sales and demand. Inadequate power supply, and poor road and port infrastructure were the major bottlenecks. The industry wants the government to build an auto and auto component parks.

In the chemical and fertilizer industry production and sales grew 10-15 per cent. But exports showed no increase. Capacity utilisation increased 10-15 per cent. Lack of power and transportation were problems for the industry, the demand for whose products was expected to go up by 5-10 per cent.

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