| Syllabus: GS-III, Subject: Economy, Topic: Industry and Industrial policy, Issue: Tamilnadu’s industrial model |
Context: Tamilnadu is the most economically diverse state in India
     Tamil Nadu’s decentralized industrialization model
- Medium-scale businesses rather than large corporations drive TN’s economic transformation.
- The state’s industrialization is decentralized, with clusters specializing in various industries.
- Major clusters include Tirupur for cotton knitwear, Coimbatore for spinning mills and engineering goods and Sivakasi for safety matches and firecrackers.
- These clusters have created employment opportunities in small urban and peri-urban centers, reducing dependence on agriculture and migration to big cities for work.
- TN’s entrepreneurial culture spans diverse communities.
- Entrepreneurship from below, combined with investments in public health and education, has propelled TN’s industrialization and diversification beyond agriculture.
| +1 advantage for mains ( case study Tamilnadu’s Economy)
·               Tamil Nadu is India’s top state in terms of economic complexity, boasting a diverse GDP and employment profile. ·               The farm sector’s contribution to TN’s gross value added (GVA) and employed labor force is below the national average, indicating lower dependence on agriculture. ·               TN’s economy is characterized by higher shares of industry, services, and construction compared to the national average. ·               Gujarat, despite being more industrialized than TN, has a higher share of agriculture in its GVA and workforce, making its economy less diversified. ·               TN’s agriculture sector is notable for its emphasis on livestock, with 45.3% of farm GVA coming from this subsector, the highest in India. |
