Tamil Nadu

Tamil Nadu There is a lot of evidence for presence of industrial activities such as textiles, ship- building, iron and steel making and pottery in precolonial Tamil Nadu. Given the vast coastline, the region has been involved in trade with both South-East and West Asia for several centuries. Colonial policies also contributed to the decline of the handloom weaving industry due to competition from machine-made imports from England. But some industries also developed during the colonial period. Industrialisation in the Colonial Period There are two sets of factors that have contributed to the process. The introduction of cotton cultivation in Western and Southern Tamil Nadu by the colonial government led to the emergence of a large-scale textile sector in these parts. Second, increase in trade during this period led to industrial development around two of the most active ports in the region, Chennai and Tuticorin. Match factories too emerged during the colonial period in the Sivakasi region, which later on became a major centre for fireworks production and printing. Port-related activity too contributed to the growth of the region. Leather production was also taking place in Dindigul, Vellore and Ambur areas. In Western Tamil Nadu, the emergence of textiles industries also led to demand and starting of textile machinery industry in the region. This textile machinery industry in turn led to the rise of a number of small workshops for repair and producers of machinery components. Another major development in the western region is, the introduction of hydro-electric power in 1930s. Availability of electricity allowed for use of oil engines for drawing ground water. This led to both expansion of agriculture as well as increase in demand for oil engines. In turn, it led to emergence of workshops for servicing engines and also for addressing the demand for spare parts. Foundries began to be set up and agricultural machinery began to be produced. Post-Independence to Early 1990s Soon after independence, several large enterprises were set up by both the central and state governments in different segments such as the Integral Coach Factory in Chennai to make railway coaches and the Bharat Heavy Electricals Limited (BHEL) in Tiruchirapalli to manufacture boilers and turbines. BHEL in turn led to the emergence of an industrial cluster of several small firms catering to its - - . . AM - - . . AM Industrial Clusters in Tamil Nadu Because of all these factors, Tamil Nadu at present has the largest number of factories among all states in India and also has the largest share of workforce employed in manufacturing. Importantly, it is more labour intensive compared to other industrially advanced states, such as Maharashtra and Gujarat. The major industries are automobiles, auto-components, light and heavy engineering, machinery, cotton, textiles, rubber, food products, transport equipment, chemicals, and leather and leather goods. Unlike other states, the industries are spread across all regions of the state (there are clusters in districts) with many of them being export oriented as well. The state has a well-developed network of roads, rail, air and major ports.