Overview:
India’s merchandise exports have contracted. Nonetheless, Tamil Nadu has emerged as a leading example in the export landscape. It achieved a growth of 7.1% in FY 2024. The state’s export strategies, infrastructure, and government support have significantly boosted its economic resilience. These factors have positioned it as a model for other Indian states. Below is a summary of Tamil Nadu’s export performance and key economic strategies.
Export Performance
- While India’s merchandise exports contracted by 3.1% to $437.1 billion in FY 2024, Tamil Nadu reported a robust export growth of 7.1%, reaching $43.6 billion.
- Tamil Nadu’s share of India’s merchandise exports increased from 8.3% in FY 2022 to 10% in FY 2024.
Key Export Categories
Tamil Nadu leads the country in several high-performing export sectors:
| Export Category | Tamil Nadu’s Share of India’s Exports |
|---|---|
| Telecom instruments | 44% |
| Cotton garments | 40% |
| Garments of other textiles | 38% |
| Motor vehicles | 37% |
| Auto components | 32% |
| Electronic machinery and equipment | 32% |
| Leather footwear | 48% |
Factors Contributing to Growth
- Special Economic Zones (SEZs): Tamil Nadu has the highest number of operational SEZs in India with 51 zones. These zones offer fiscal incentives. They also offer logistical efficiencies.
- High-Value Manufacturing Focus: The state emphasizes manufacturing in sectors like apparel, furniture, medical devices, and electronics. These are high-value goods with a global demand.
Government Support and Infrastructure
- Tamil Nadu ranked first in NITI Aayog’s Export Preparedness Index 2022, excelling in export promotion, institutional frameworks, and transportation connectivity.
- Investments are underway in trade-supporting infrastructure and last-mile connectivity in industrial zones, facilitating smoother export operations.
Innovation and Research
- Tamil Nadu is focusing on creating a knowledge-based economy, with initiatives in R&D, innovation clusters, and hi-tech corridors.
- The new Startup and Innovation Policy aims to make the state a top 20 global startup destination by 2032.
Strategic Lessons for Other States
Tamil Nadu’s success underscores the importance of diversifying export portfolios. It highlights the need for strengthening high-value manufacturing. Investing in export-related infrastructure is also vital. These elements serve as pathways for other states to enhance economic resilience and boost global competitiveness.
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