G Balachandar Tamil Nadu’s growth story will percolate beyond the capital city, while the overall business ecosystem of the State will see further improvements, said a report by Credai and CBRE.

The State’s business environment is anticipated to continue to improve due to a stable political dispensation, focussed policy initiatives, widening infrastructure base, and availability of a large talent pool. While disruptions due to the pandemic are unlikely to last beyond the short term, over the long run global corporations (especially IT/ITeS and manufacturing companies) are expected to continue setting up operations and expanding in Tamil Nadu, it said.

Investment destination

The continued attractiveness of the State as an investment destination in India, particularly for global / domestic manufacturing players, is expected to further push it to the forefront of innovation and technological evolution. This is because companies are increasingly adopting innovative technologies (such as Artificial Intelligence, SaaS, Big Data, Internet of Things, etc) in their quest to keep pace with the changing times.

Also, Tamil Nadu’s growth story is to percolate to its Tier-II and Tier-III cities, on the back of a supportive policy climate and continued infrastructure initiatives. Cities such as Coimbatore, Madurai and Trichy are expected to emerge as leading Tier-II investment destinations in the State, driven by several policy and infrastructure initiatives. Further, a strong local economy, connectivity to other key cities, growth of IT/ITeS sector and availability of skilled manpower are expected to create new avenues for real estate development in these cities in the coming years.

The report stated that the investor interest in these cities to grow substantially in the future as they look for expansion avenues, thereby safeguarding the state’s position as a premium investment destination in the long run.

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