The service sector growth - lessons to learn from Tamil Nadu
The two major regional parties that have understood the pulse of the people and have done a massive amount of development. The most important of this is the development of basic infrastructure that leads to a massive number of small entrepreneurs who go from one place to another selling a massive number of goods.For example, between one slightly big town and another forty villages that are within a radius of just twenty kilometers, they sell vegetables, fish, spices, organic fertilizers, bangles, fruits and unorganized sector textiles like saris and other inner garments worn by ladies. There are good roads that connect to the villages. The people go around in two wheelers and bicycles.
Similarly, they go to Chennai and buy the cheap variety of aluminium vessels in bulk. They take it and sell it in the villages. For example, a vessel that can cook rice for four people is purchased in bulk for just Rs. 60 and sold for Rs.140 in the villages. Even this money is taken from the poorest people in three instalments.
It is common to find hundreds of small entrepreneurs who sell such cheap aluminium vessels. A heap of vessels are tied together with big ropes and delicately balanced on a moped. The entrepreneur would keep on selling the vessels and would make a minimum profit of Rs. 400 per day, after all expenses. This is why the per capita income keeps on growing. A massive number of eateries that sell the "parotta" (a version of roti but a much thicker variety) is still sold for Rs. 10 or Rs. 12 apiece.
50 percent of the State's GDP comes from the service sector. They also buy all branded toothpastes, toothbrushes, food items and so on. Hence, they also contribute to GST in their own way.
