Officials find it hard to woo investors for GIM

The state cabinet led by Chief Minister Edappadi K Palaniswami on Monday discussed the ensuing global investors meet and the Rs 14,000 crore-worth investments that are to be inked during the investors meet next month.

According to officials attached to the state industries department, the overall investment mood is dull due to the high inflation and economic growth hit by demonetisation and GST.

“Tamil Nadu is a market leader in automobiles, IT sector and manufacturing, but global investors meet at this point of time is tough for any government,” the official said.

At present, the officials are negotiating with the existing and new companies seeking investments. Of the total 32 districts, six districts in the state, including Chennai, Kancheepuram, Salem, Coimbatore, Erode and Namakkal are doing well, but there is no much interest for other districts. Districts with manufacturing, IT and automobile units are only attracting investments, whereas the coastal and central districts fail to attract the investors, sources said.

“Several sectors like real estate, leather and agriculture are currently under liquidation crunch. Similarly, the aerospace sector and the state policy on the aviation is yet to make any major investments since 2015 GIM,” a senior official involved in TN roadshow programmes for global investors meet said.

He added that during the 2015 GIM, the state attracted investments worth over 2.40 lakh crores and subsequently announced the second edition of GIM similar to the lines of Gujarat and Andhra, which is unwarranted. “Tamil Nadu being already an established industrial state can just focus on attracting industrial investments on a regular basis which actually works better. Forcing a GIM on TN and that too at a time ahead of Lok Sabha polls has put the administration in a fix,” the official added.

A senior government official, commenting on the lukewarm responses for the GIM, said that the state had already finalised investments worth Rs 12,000 crore coming from Hyundai, Ceat and other small companies and now the expansion from the existing companies are also happening. New investments from Japan, Singapore and the United States are under discussions and will take shape during the two-day international summit, the official said.

Further, Industries Minister MC Sampath has reached out to the tourism and hospitality industry and we are hoping for some new investments by next month, the official added.

“A recent survey by All India Manufacturers Organisation said post demonetisation and GST, sectors like textiles, automobiles, power, tannery and housing are under financial stress and have urged for revival by the Centre and state,” AIMO national president KE Raghunathan said.