CHENNAI: Warning that Tamil Nadu risks falling behind despite its formidable talent base and industrial legacy, Governor RN Ravi on Sunday said investors were 'not enthusiastic' about investing in the State, pointing out what he called a widening mismatch between its potential and actual outcomes in investment, innovation and employment.
Addressing the inaugural session of the PanIIT Tech4Bharat Summit 2026, a high-level conclave of IIT alumni, at Sholinganallur here, the Governor said Tamil Nadu, though highly industrialised and rich in human capital, was no longer performing at its optimal capacity.
With these parameters (referring to capabilities of the State), investors should be making a beeline. But that is not the reality. Capitalists are not enthusiastic about investing in Tamil Nadu," Ravi said. He noted that while Tamil Nadu was once the second-largest recipient of investments after Maharashtra, it had slipped to sixth place, with Maharashtra, Gujarat, Karnataka, Haryana and Telangana moving ahead- Governor RN Ravi
Referring to investment intentions in 2025, the Governor said nearly 25 per cent of the total Memoranda of Understanding signed went to Andhra Pradesh, 12 per cent to Odisha, while Tamil Nadu's share was less than five per cent.
Ravi contrasted this with the State's strong educational indicators. Tamil Nadu leads the country in Gross Enrolment Ratio (GER), crossing 50 per cent enrolment, produces nearly 17–18 per cent of India's engineers and accounts for the highest number of PhDs annually. "With this solid base, there is no reason why Tamil Nadu cannot be the number one State in technology and innovation," he said, adding, "Is it reflected on the ground?"
The Governor attributed the disconnect to issues in quality and ecosystem. "We have numbers, but we lack quality," he said, pointing to learning outcomes that showed gaps in foundational skills, a shortage of qualified faculty in engineering colleges and a large pool of graduates deemed unemployable by industry. Nearly 45 per cent of faculty positions in engineering colleges remain vacant, he noted.
He also alleged that the MSME sector and startups are underperforming in the State. Saying that while incubation may happen in Tamil Nadu, businesses often move out. "Where are we missing? If we identify the problem and fix it, Tamil Nadu will be number one," he said.
Calling for urgent reforms in school and higher education, stronger collaboration between institutions and a more business-friendly ecosystem, Ravi asserted, "If we fix the quality of education and ease of doing business, no force can stop our growth."
At the event, musician and nominated Rajya Sabha MP Ilaiyaraaja outlined the ongoing work to establish a music centre in collaboration with IIT Madras, seeking support from the academic community and the Governor. IIT Madras Director V Kamakoti and PanIIT Alumni India Chairman Prabhat Kumar were among those present.