Focus: GS-III Indian Economy
Why in news?
Tamil Nadu has emerged as the country’s top investment destination in the first quarter of this financial year, even as overall fresh investment announcements in India slumped to the lowest in five years amidst a period marred by the extended pandemic-induced lockdown.
- Tamil Nadu accounts for almost 20% of the investments envisaged to execute more than 1200 projects in India in the first quarter.
- The Tamil Nadu government had signed more than 15 MoUs (memorandums of understanding) with investors on May 2020.
- Tamil Nadu is also host to three of the five data centres envisaged to come up in the country.
Boost comes in the times of collapse?
While private sector investments on the whole collapsed to just about 40% of the total investments in the quarter. (To put in into perspective, such ratio was last seen in 2013-14.)
What about other states?
While States like Tamil Nadu and Maharashtra held investors meet and signed MoUs, Uttar Pradesh, Madhya Pradesh and Karnataka reworked labour laws, started building land banks and sent feelers to foreign companies for investing in their States.
- Fresh capacity additions are expected in the healthcare and pharma sectors with immediate effect.
- The coming quarters will also demonstrate the efficacy of the Centre’s stimulus package — that included financial and fiscal reforms along with steps to enhance the agriculture and small-scale industries — in attracting foreign and domestic private capital.
-Source: The Hindu