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The south’s leap forward

The Confederation of Indian Industry’s finding that the States in the south have the best economic indices in the country today confirms the generally prevailing impression. The CII’s southern regional chairman, P.K. Mohapatra, has said, be it growth in income, industrial product, social indices or the State governments’ liabilities, the south ranks among the best. What makes this trend even more visible in attracting new industries and investments seems to be the involvement of a whole region. Just as the eastern region acquires significance because of its mineral deposits and the chain of coal mines, the four southern States, along with Maharashtra, have, as a region, earned the reputation of being industry and investment friendly. In recent years, the main competition has been among these States to woo both foreign and domestic investors. The southern States have emerged on top of the pack, along with West Bengal to an extent, and the Punjab-Haryana-Delhi triangle, in the development of not only traditional industries, but the services sector as well. Having recognised this advantage of the south, the CII has undertaken to formulate a vision document for the region, projecting what the business community would like the southern States to be by 2025.

In identifying reputed consultants to put together the vision document separately for Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh, the CII has taken the lead in showcasing the potential as well as the success stories of the region. It is the availability of better infrastructure, a responsive government, easy access to qualified manpower, and the growth of industries that have enabled these States to gain recognition. But of late, there appears to be an emergence of chauvinistic tendencies in certain areas, having the potential to scare investors away, and the State governments will do well to fight this trend. They must learn from Bangalore’s experience the unwisdom of seeking to achieve rapid growth without paying adequate attention to the development of physical infrastructure. If the Chief Ministers of these States can sink their political differences and revive attempts to form a southern regional council that would make for greater synergy and closer cooperation, they can take a big leap forward. Such a joint platform can also provide more opportunities to resolve inter-State disputes, especially over sharing of waters. River water disputes and the linguistic divides tend to create problems among the States and the people in the region, and they need to be contained if the States are to better their performance.

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