A host of Indian and multinational companies have committed about $5 billion in investments at the Tamil Nadu Global Investors Meet 2024 as chief minister M.K. Stalin released plans to make the state a ‘$1 trillion economy’.
The Tamil Nadu government signed a series of memorandums of understanding (MoUs) worth at least $4 billion with firms such as Qualcomm, Hyundai, and Pegatron, among others, on Day One of the investors’ summit on Sunday.
Major Indian and global conglomerates such as Reliance Industries Ltd, Tata group, VinFast, and JSW Group announced investment plans.
Vietnamese electric vehicle maker VinFast signed a deal with the state government to invest ₹16,000 crore ($1.92 billion) for a manufacturing facility in Thoothukudi district.
In a virtual address, Reliance chairman and managing director Mukesh Ambani said his company was committed to making new investments in Tamil Nadu in renewable energy.
Ambani said Reliance, in partnership with Canada-based Brookfield Asset Management and US-based Digital Reality, will open a 20-megawatt greenfield data center soon.
Reliance had in July announced an investment of ₹378 crore ($45 million) to enter an existing joint venture between Brookfield and Digital Realty for the data center . The three companies now own 33% each in the venture.
Tata Electronics, meanwhile, committed to invest ₹12,080 crore ($1.45 billion) to build an Apple mobile phone assembly unit, while Pegatron, another Apple supplier, said it would invest up to ₹1,000 crore ($120 million) to expand production at its existing facility.
JSW Group chairman Sajjan Jindal said his company plans to double the investments made in Tamil Nadu across sectors over the next few years. The group has a total investment of ₹15,000 crore ($1.8 billion) in the state.
The biggest investment is likely to come from Tata Power, which is expected to announce a 10-gigawatt solar and wind project in Tamil Nadu worth ₹70,000 crore ($8.42 billion). The memorandum of understanding (MoU) for the investment to be made for five-seven years was expected to be signed on Monday.
Union industries minister Piyush Goyal, who represented the central government at the event, said the world today wants to engage with India for free trade agreements (FTA), and to expand trade and diplomatic relations with India.
‘Tamil Nadu Vision for $1 Trillion Economy’
Inaugurating the Global Investors Meet 2024 at the Chennai Trade Centre, Stalin said the state has been rolling out the red carpet for global investors and it has become “the most welcoming state” for industries.
Stalin unveiled a report on ‘Tamil Nadu Vision for $1 Trillion Economy’, providing a comprehensive “growth framework” to achieve the target by 2030. The report has been prepared by global management consulting BCG, the state’s knowledge partner.
“With the aim that Tamil Nadu should play an important role in shaping India’s economic growth, I have set an ambitious target of transforming Tamil Nadu’s economy into a $1 trillion economy by 2030. To achieve this, we are pursuing a twin-pronged approach of attracting both capital and employment intensive investments,” Stalin said.
Stalin also unveiled the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024, under which the state will offer up to 50% of additional funding incentives to semiconductor projects selected under the central government’s $10 billion chip subsidy plan.
The policy aims to woo anchor investments in semiconductor and advanced electronics manufacturing to contribute 40% of India’s electronics exports by 2030 and create a skilled talent pool.
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