Tamil Nadu's Economic Springboard: The Rise of New Growth Corridors

Any activity that leads to all round development of some kind and also has economic implications can be called a Spring Field of Economic Activity. Tamil Nadu has a number of such Spring Fields making it the second largest economy of India. This article is an attempt to throw some light on how these Spring Fields of Economic Activity have happened in Tamil Nadu.


Tamil Nadu is second to Kerala in terms of literacy but has a huge variety of good schools and colleges and polytechnics that produce hundreds of thousands of people who are qualified and technically trained manpower. This manpower starts feeding the numerous industrial organizations of the State. For example, due to some impetus and encouragement given by the Government of Tamil Nadu in the past two years, it is already the number one State in the export of electronic goods. Unlike the major states of India, where everything is concentrated in one major metro city, Tamil Nadu is the most urbanized State of India with 32 different districts that are often separated by just thirty kilometers. Be that as it may, the massive development of the State has created several Spring Fields of Economic Activity through

  • Massive development of the Service Sector
  • Growing income through agriculture
  • A huge bus transport system
  • Chennai's growth as a massive metropolis and
  • New Growth Centers in all places.

Massive development of the Service Sector

Tamil Nadu is the number one State in terms of the Service Sector. To give one specific example, along every State and National Highway, there are numerous shops with the nameplate of "Kumbakonam Degree Coffee". This special coffee emanated from the town of South Tamil Nadu, called Kumbakonam. The quality of this coffee is so good and has now become so famous throughout India. Similarly, upper-middle-class hotels like A2B with a huge number of branches throughout Tamil Nadu have become a sensation. The number of A to Z marriage organizers who keep on taking massive orders to serve up to 5,000 guests and also take care of each arrangement is increasing day after day. Such services employ at least two hundred thousand people, directly and indirectly. Tamil Nadu is home to 540 engineering colleges, each of which employs a minimum of at least eighty teachers. There are a massive number of private coaching institutes that take on the mantle of personality development, conducting various value-added courses and so on. There are too many para-medical and nursing colleges as well. Many people do not know that Tamil Nadu's revenue through religious tourism in the form of temple functions and other rituals related to temple administration and operations is very huge and generates self-employment running into several hundreds of thousands of people. Similarly, there are at least fifteen small hotels offering the typical South Indian tiffin items everywhere in the State. In every such Spring Field of Economic Activity, the revenue keeps increasing day after day.

Growing income through agriculture

Tamil Nadu is one of the largest producers of a variety of vegetables and fruits. There are specific regions where the production is so good and diverse. For example, the entire Delta region is so powerful as it is rained and has the Cauvery River to support agriculture. When there is a good monsoon, excess production of green vegetables takes place as a routine. Only potatoes and onions come from Maharashtra. The rice and vegetables grown in Tamil Nadu support the livelihood of so many thousands of families. The disposable income gets spent on temple activities and the education of children. Thanks to the inclusive growth policies that include education, there are too many children of farmers who are now doctors, engineers, scientists and technocrats in various advanced counties. This NRI income comes back to the State and contributes to significant Economic Activity.

A huge bus transport system

Tamil Nadu has the best-organized State transport system in India. The costs of travel are slightly cheaper than in the other Southern States. The buses crisscross the entire State. Since the buses are available so early in the morning, there are too many vendors who take a variety of goods to the surrounding villages and towns. For example, a farmer who takes vegetables grown on his own farm would end up spending only Rs. 10 to cultivate a kilogram of brinjal but since local bus travel is free for women, he would make one hundred per cent profit by selling it directly to customers at Rs. 20. This sort of trade keeps on multiplying everywhere in the State.

Chennai's growth as a massive metropolis

Chennai is India's fourth largest city in terms of area. It may be the sixth largest in terms of population, but the metropolis is now growing at a fast chip. It has a formidable number of good Arts and Science Colleges, consistently ranked among the best in India. This attracted the best of students and even children of NRIs. It is home to at least ten good Deemed Universities. These Universities employ hundreds of well-paid teachers. Many auto majors have their manufacturing plants in and around Chennai. This metropolis also has an enviable culture that dates back several centuries. Hence, the interest in matters related to cultural heritage has also increased in later years. The Marina Beach in the city is the second longest beach in the world, attracting thousands of tourists. The real estate sector is also booming as the IT sector has now become so viable and is now regarded as one of the fastest growing in India. Hence, Chennai is home to a growing number of Economic Spring Fields.

New Growth Centers in all Fields

Coimbatore is widely acknowledged as the fastest growing B Class city in India. Similarly, Krishnagiri and Hosur are now being developed ad new industrial clusters and the Bangalore Metro is being expanded to Hosur as well. Similarly, tourism is now growing by leaps and bounds in Madurai and other Centers of South Tamil Nadu, thanks to the efforts of the Government of Tamil Nadu. The new Corporate hospitals coming up everywhere have also contributed to the growth of Tamil Nadu. The growth of Salem as a major agricultural centre has been stupendous. Tirupur which is near Coimbatore is a major textile hub.


The aforesaid discussion is somewhat indicative of the Economic Spring Fields of Tamil Nadu. We will discuss the specific aspects in future articles.


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