Economics · Ch 11 — Tamil Nadu Economy
Industrial Development in Tamil Nadu
Industrial Development in Tamil Nadu
Tamil Nadu is widely regarded as one of India's most industrialised states, with a diverse manufacturing base spread across several distinct regional clusters rather than concentrated in a single city.
The area around Chennai has, over recent decades, become one of India's leading centres for the automobile and auto-components industry, with a number of vehicle manufacturers and a large network of component suppliers based in and around the city. This concentration of automobile manufacturing is well known enough that Chennai is sometimes referred to, in general commentary, as the "Detroit of India" — a reference to the American city long associated with the automobile industry.
Textiles and hosiery form another long-standing pillar of Tamil Nadu's industrial economy. The town of Tiruppur has grown into one of India's most important knitwear and hosiery-manufacturing clusters, with a large concentration of garment units geared substantially towards export markets. Coimbatore, meanwhile, has a much longer history as a textile-manufacturing centre — its cotton mills and textile engineering industry earned it the informal title "Manchester of South India" (after Manchester in England, historically the centre of the world's cotton textile industry), and the city has since also diversified into engineering goods and textile machinery manufacturing.
Tamil Nadu is also a significant centre for the leather industry, particularly around Vellore and Ranipet, where a cluster of tanneries and leather-goods manufacturing units has developed over a long period, producing finished leather and leather products including for export.
More recently, Chennai has also emerged as a significant hub for information technology (IT) and IT-enabled services, joining the ranks of India's other major IT centres, with a number of technology parks and software/services companies based in and around the city.
| Industrial cluster | Region | Known chiefly for | …
A geographic concentration of interconnected firms, suppliers, and skilled workers in a related line of industry within a particular region, which benefits from shared infrastructure, specialised labour, and supplier networks. Tiruppur's knitwear cluster and Vellore's …