Tamil Nadu expects 10 percent growth in 2010-11

CHENNAI - The Tamil Nadu government is expecting the state’s economy to log 10 percent growth this fiscal, up from 8.96 percent in 2009-10, state Finance Minister K. Anbazhagan said Saturday.

Presenting the interim budget for 2011-12 in the assembly here, he said: “During 2006-2007, the growth rates at constant prices in agricultural, industrial and service sector were 12.64 percent, 12.91 percent and 16.33 percent, respectively. The overall growth in Gross State Domestic Product (GSDP) for 2006-07 was 14.85 percent.”

During 2007-08 and 2008-09, growth in the the agricultural sector was affected due to floods and cyclone and by in the industrial and service sector by the global economic slowdown.

“After the economic recovery, GSDP has shown growth of 8.96 percent at constant price in 2009-10. This is expected to be more than 10 percent in 2010-11. Because of this, per capita income has increased from Rs.39,692 in 2005-06 to Rs.69,377 in 2009-10,” he said.

Predicting food production to reach a level of nine million tonnes this fiscal, Anbazhagan said the area under cultivation in the state has gone up to six million hectares up from 5.8 million hectares.

Announcing an allocation of Rs.61 crore for tourism development, Anbazhagan said: “Due to the various steps taken by this government, the arrival of tourists to Tamil Nadu has increased from 7.7 percent of total tourists coming to India in 2005-06 to 12.5 percent in 2009-10.”

He said Rs.12,674 crore has been allocated for school education and Rs.2,135 crore for higher education sectors.

Describing the industrial growth in the state during the last five years as impressive, he said many leading industries have made investments worth Rs.52,195 crore in Tamil Nadu.

“Over the last five years, this government has provided Rs.1,377 crore tax concession for the promotion of industries. A sum of Rs.1,525 crore has been provided for this purpose in this interim budget,” he said.

Targeting 25 percent share in the investment and production of information technology (IT) sector in India up from the current 11 percent, Anbazhagan said the state government is implementing several schemes to achieve this objective.

He said software exports from the state has gone up to Rs.36,766 crore in 2009-10 from Rs.13,586 crore in the year 2005-06.

Speaking about the DMK government’s mega housing scheme - converting thatched houses into concrete houses, the minister said a sum of Rs.375 crore has been allocated in the budget for the purpose.

–Indo Asian News Service