Tamil Nadu government inks MoUs worth Rs 2,120.54 crore, aims to increase exports to $100 bn by 2030

Tamil Nadu government has inked a Memorandum of Understanding for 24 projects worth Rs 2,120.54 crore. Tamil Nadu Chief Minister, M K Stalin said that the goal of the government is that by 2030 the state’s exports shall grow to USD 100 billion.

The Micro Small and Medium Enterprises Trade and Investment Promotion Bureau (M-TIPB) of the state government signed an MoU with Flipkart/Walmart for promotion of e-commerce among MSMEs in Tamil Nadu through a supplier development programme. The initiative aims to expand the capabilities of MSMEs through intensive training and support and equip them to scale up their businesses and become part of domestic and global supply chains.

M-TIPB and The Indo German Chamber of Commerce entered into an MoU for collaboration between MSMEs in the state and businesses in Germany. The MoU would facilitate linkages, interaction, technology collaboration programmes and export opportunities for MSMEs in the state.

Organised by the departments of the state and central governments, the Tamil Nadu Exports Conclave was presided by CM Stalin. This conclave is to showcase the strength of Tamil Nadu in exports. The conclave is part of nation-wide events to commemorate the 75th anniversary of Indian Independence (Azadi Ka Amrit Mahotsav).

As part of the event, Stalin released Tamil Nadu Exports Promotion Policy (TNEPP) and MSME Exporters Handbook and inaugurated an Export Exhibition, which saw the participation of 21 export units, export promotion centres and government departments.

On behalf of the Industries Department, 14 MoUs were signed with the 100 per cent Export Oriented Units, with a cumulative investment of Rs 1880.54 crore, creating employment opportunities for 39,150 persons, an official release said.

Another 10 MoUs were signed on behalf of the MSME Department, with a cumulative investment of Rs 240 crore, providing employment opportunities for 2,545 persons.

In his address, Stalin said "We have set up a target of one trillion USD economy for Tamil Nadu by 2030. To achieve this, the state's exports should be increased to 100 billion USD from the present 26 billion USD."

To help attain the goal, public and private sector companies should work in cohesion, he said.

10 export hubs have been identified by the government and these would fortify the export related common infrastructure projects in these places by reimbursing 25% of the project cost, subject to a ceiling of Rs 10 crore per hub.

The 10 identified locations are Chennai, Coimbatore, Hosur, Kancheepuram, Tirupur, Karur, Madurai, Ambur, Tuticorin and Pollachi, the CM said.

Schemes have also been formulated to incentivise production of value added products (Special Package Incentives) by exporters.

Such initiatives are part of the TNEPP.

Every district produces several unique products and to market them globally, Export Centres are being set up in every district.

Similar to the "Made in India" tagline, "Made in Tamil Nadu" should echo and "this is not only our desire, it is our goal too and our journey will be towards that goal," he said.

With Rs 1.93 lakh crore exports, Tamil Nadu is the third biggest state in India in exports, and its share in national exports is 8.97% (2020-21), Stalin said.

Citing sector-wise statistics on exports from the state, including a 58% and 45% share in apparel and accessories and footwear respectively, Stalin said "we should not be satisfied with this victory, the export percentage should go up every year."

As part of the government's efforts to further boost exports, "State Export Promotion Committee" would be set up and the Chief Secretary shall lead the panel, he said.

Stalin said a Project Monitoring Unit, an exclusive body, has been set up to monitor export schemes of MSMEs.

A first in the country, the Tamil Nadu government is setting up an "International Furniture Park" at Tuticorin, an export oriented initiative and this would drive the industrial growth of southern regions of the state.

As a result of the cancellation of the one percent market cess on cotton and waste cotton by his government, Stalin said, "I am happy to announce that the Cotton Corporation of India has now come forward to set up cotton depots in Salem, Madurai, Coimbatore and Virudhunagar."

In total, investments committed in 24 projects is Rs 2,120.54 crore and would bring employment opportunities to 41,695 people.

The investments covers various sectors like textiles, chemicals, IT / ITES, steel, leather, apparels and general manufacturing.