Major Industrial Clusters and Their Specialisation in Tamil Nadu
is nicknamed as "The Detroit of Asia" use because of its large auto
industry base. Chennai is home to large number of auto assembly and component
making firms. While there were a few domestic firms like TVS, TI Cycles, Ashok
Leyland and Standard Motors earlier, in the post-reform period, several MNC
firms like Hyundai, Ford, Daimler-Benz and Renault-Nissan have opened factories
in the region. This in turn has attracted a number of component suppliers from
foreign countries. Many local firms too cater to component production for all
another auto cluster with firms like TVS and Ashok Leyland having their factories
there. Coimbatore region is also developing into an auto component cluster.
Namakkal-Tiruchengode belt in western Tamil Nadu is known for its truck body
building industry. Karur is another major hub with more than 50 units. Many
entrepreuners were previous employees in a big firm involved in body building
who came out to set up their own units.
Nadu is home to the largest textiles sector in the country. Because of the
development of cotton textile industry since the colonial period, Coimbatore
often referred as the "Manchester of South India". At present, most
of the spinning mills have moved around the Coimbatore city. Tamil Nadu is the
biggest producer of cotton yarn in the country.
is however more widespread with Erode and Salem region too having a large
number of power loom units.
is famous for clustering of a large number of firms producing cotton knitwear.
It accounts for nearly 80% of the country's cotton knitwear exports and generates employment in the range of over three lakh people since the late 1980s. It is also a major producer for the domestic market. Because of its success in the global market, it is seen as one of the most dynamic clusters in the Global South. While initially most firms were run by local entrepreneurs, at present, some of the leading garment exporters in India have set up factories here.1
Countries in the southern hemisphere are called Global South
from body building, Karur is a major centre of exports of home furnishings like
table cloth, curtains, bed covers and towels. Bhavani and Kumarapalayam are
again major centres of production of carpets, both for the domestic and the
from such modern clusters, there are also traditional artisanal clusters such
as Madurai and Kanchipuram that are famous for silk and cotton handloom sarees.
Nadu accounts for 60 per cent of leather tanning capacity in India and 38 per
cent of all leather footwear, garments and components. Hundreds of leather and
tannery facilities are located around Vellore and its nearby towns, such as
Ranipet, Ambur and Vaniyambadi. The Vellore district is the top exporter of
finished leather goods in the country. Chennai also has a large number of
leather product making units involved in exports. There is another clustering
of leather processing in Dindigul and Erode. The leather products sector too is
a major employment generator.
region, once famous for its match industry has now become a major centre for
printing and fireworks in the country. It is believed to contribute to 90% of
India’s fireworks production, 80% of safety matches and 60% of offset printing
solutions. The offset printing industry has a high degree of specialisation
among firms with several of them undertaking just one operation required for
printing. All these industries have their origin in the colonial period and at
present offer employment to a large number of workers.
economic reforms started in the early 1990s, the state has seen the entry of
hardware and electronics manufacturers like Nokia, Foxconn, Motorola,
Sony-Ericsson, Samsung and Dell making cellular handset devices, circuit boards
and consumer electronics. They have all been set up in the Chennai region.
In order to make development more inclusive, Tier II cities such
as Coimbatore, Madurai, Trichy, Tirunelveli, Hosur and Salem have been promoted
as IT investment destinations apart from the Chennai region. To facilitate
this, ELCOT has established ELCOSEZs (IT Specific Special Economic Zones) in
the following eight locations:
• Chennai – Sholinganallur
• Coimbatore – Vilankurichi
• Madurai – Ilandhaikulam
• Madurai – Vadapalanji-Kinnimangalam
• Trichy – Navalpattu
Companies desiring to set up units in the state can avail
themselves of the facilities provided in ELCOSEZs. The possibility of setting
up ELCOSEZs in new locations will be explored based on demand and viability.
(Map Information Communication Technology Policy - 2018–19)
• Tirunelveli – Gangaikondan
• Salem – Jagirammapalayam
• Hosur – Viswanathapuram