Industry body Confederation of Indian Industry(CII) has stated that Tamil Nadu Government’s upcoming budget should focus on measures to ensure balanced industrial development across the State. 

CII-Tamil Nadu has submitted its pre-budget recommendations to State Finance Minister for the State Budget 2022-23. “The prime focus of the State budget should be to facilitate iore investment, especially in the central and southern districts of Tamil Nadu to ensure equitable growth,” it said in a statement. 

More focus on MSME

Also, more focus is to be given to the budget for the Micro, Small and Medium Enterprises (MSMEs) sector as it ensures job creation in the State which is the need of the hour in these challenging times caused by the pandemic. Further, MSMEs need a special helping hand and should be exempted from approvals and inspections for the next three years under the State laws. 

For ease of doing business, Government should allow all companies to avail self-certification wherever possible for all licenses and renewals. The Authorised Economic Operator (AEO) programme by Customs is a successful example in this direction. The government needs to digitalise all licencing issuance/renewal processes through Tamil Nadu Single Window Portal and manual submissions may be discontinued. 

The State Government need to identify and convince the industries (both domestic and international) who are interested in starting PLI units and to provide necessary support in infrastructure and policy-related matters so that they can start their PLI units in Tamil Nadu. 

Residential building sector

CII-Tamil Nadu is of the view that the residential building sector has enormous potential for employment generation and provides an economic multiplier effect while solving housing challenges for the growing urban population. “Treating this as an industry and providing investment incentives and/or stamp duty concessions can boost the sector and in turn the economy,” it stated. 

As Hosur is emerging as the electronics hub of Tamil Nadu there is a need for a well-developed infrastructure with a 10–15-year long term growth perspective. Without achieving self-sustenance in electronics, the growth of many other industries may not be possible. Chennai, Hosur and Coimba​tore could be aptly explored and fast-tracked for further investments in the electronics sector including semiconductors. 

In the agriculture sector, the focus should also be given to the use of new technology including drones and AI-based decision support systems, reduction in the use of chemical fertilisers and use of low-cost organic inputs and supporting start-ups for innovations. 

CII also felt that the State could establish more specialised recycling centres for vehicle scrapping with special units to dismantle and reclaim as much as possible of the used car. 

The budget should also focus on bringing new investment in the chemical and pharmaceutical sector, as the State has huge potential for growth in these sectors. The government should also work towards establishing a large scale drug park in the State. 

 

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