The Hindu : Tamil Nadu News : A road map for an inclusive economy

Online edition of India's National Newspaper
Thursday, Dec 06, 2007
ePaper

Tamil Nadu

Tamil Nadu

A road map for an inclusive economy

The last decade has seen the transformation of India from a closed, inward looking economy to a vibrant, dynamic and liberalised one, projected to grow at 9.2 per cent. Tier II and III cities are now determining the country’s emerging growth pattern, with new buzz towns emerging due to the recent boom in service and manufacturing sectors.

However, I would like to highlight how Tamil Nadu has steadfastly promoted Tier II and III towns to bring about an equitable economy in the State over the last several decades.

Tier II cities have boasted of several high profile industries for almost 50 years. When Chennai developed as the “Detroit of Asia,” Coimbatore became the country’s foundry capital and Tirupur grew to be the textile and apparel manufacturing hub of India. Sivakasi has emerged as the printing capital, Tiruchi became the energy equipment manufacturing hub and Tirunelveli developed as the non-conventional energy hub.

These Tier II and Tier III cities, with their smaller but equally talented labour pool and with a cost advantage of 15-20 per cent, have come to the fore as new growth centres. Apart from entrepreneurial citizens, the development of infrastructure, connectivity by air, rail and road and massive government support are the other factors that have worked to the advantage of the Tier II and III cities. While industry worked relentlessly to promote Tamil Nadu, successive State Governments also worked towards promoting alternative centres of growth.

The Confederation of Indian Industry has been working with industry to promote Tier II and III towns.

In 2005, the CII brought out a report on Southern Prosperity through Enhanced Economic Development (SPEED), covering seven southern districts and focussing on the oft-overlooked potential for growth in Tier II and III cities. The study conducted an extensive probe into the issues hindering growth. Current initiatives by various stakeholders were also analysed.

On infrastructure, the study pointed out that although there was adequate intra-district connectivity, there was scope to strengthen inter-district connectivity and develop six-lane highways, especially between Madurai, Chennai and Tuticorin.

The study formulated a four-pronged strategy. Madurai would serve as the key hub for manufacturing, along with its satellites in Virudhunagar, Ramanathapuram and Tirunelveli, while Tuticorin emerged as a key export-cum-services hub in the southern zone.

A Madurai-Virudhunagar-Tirunelveli knowledge corridor would be created, while the Madurai-Kanyakumari-Ramanathapuram stretch would be developed as a tourism corridor.

The SPEED initiative also identified the strong base of education at the university level and ever-expanding computer literacy as favourable factors for the growth of the ITES and BPO sectors in Madurai, Virudhunagar and Tirunelveli.

Having closely worked on the SPEED initiative, I know that getting concurrence and buy-in from all stakeholders is the key to the success of the initiative.

This study also paved the way for greater industry and government collaboration.

Through experience, Tamil Nadu has learned that equitable, sustainable and inclusive growth happens only when development is spread across a vast region and reaches all strata of society.

(T. Kannan, Past Chairman, CII–Southern Region; Chairman, Southern Synergies: Tamil Nadu – Focus on Tier II and Tier III Cities, and Managing Director, Thiagarajar Mills Ltd.)

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu