Assocham for increasing IT investments in Tamil Nadu

Chennai: Total outstanding investments attracted by Tamil Nadu in the IT sector have constantly fallen since 2011, industry body Assocham said on Monday.

It has asked the state government to arrest the continuous decline by creating a vibrant IT ecosystem that will boost overall development of the state and “further perk up” it’s already strong manufacturing base.

Total outstanding investments attracted by Tamil Nadu in the information technology (IT) sector may reach Rs 27,857 crore mark by 2020 from Rs 15,000 crore in 2015-16, the industry body said, quoting an IT sector specific investment analysis.

Investments attracted by Tamil Nadu in the IT sector increased from '4,200 crore in 2005-06 to Rs 14,855 crore in 2015-16 thereby clocking a compounded annual growth rate (CAGR) of over 13 per cent during the decade, it said.

However, the IT sector accounted for just over one per cent share in the total outstanding investments worth over Rs 1 lakh crore attracted by various sectors across Tamil Nadu from both public and private sources as of 2015-16.

Tamil Nadu, ranked as the third top state in terms of software exports from India, has significant potential to become top-ranked IT destination globally during the course of next five years if it focuses on creation of IT products and services based on the global best practice, the report said.

Abundant availability of talented and educated workforce together with industry-friendly state government further makes the case stronger for Tamil Nadu in this regard, said Mr D.S. Rawat, secretary general, Assocham.

Karnataka tops the list with about one fourth (24 per cent) share in total outstanding investments attracted by IT sector in states across India followed by Gujarat (16 per cent), Kerala (13 per cent), Andhra Pradesh (12 per cent), Tamil Nadu (6.6 per cent), Maharashtra (5.1 per cent), Haryana (5.1 per cent), West Bengal (4.5 per cent) and Telangana (4.4 per cent) as of 2015-16.