By Aritra Banerjee
The Tamil Nadu Defence Industrial Corridor (TNDIC) has received strong support from the industry, with 53 organisations and companies investing a total of ₹11,794 crore. Five nodes, including Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli, have been identified as part of TNDIC. The industries and organisations have invested ₹3,861 crore, creating job opportunities directly and indirectly.
In a written reply to Dr Anbumani Ramadoss in the Rajya Sabha, Minister of State for Defence Ajay Bhatt noted the support the Government of Tamil Nadu provided in developing the TNDIC. The Memorandums of Understanding (MoUs) and other arrangements made by the government have ensured that the TNDIC continues to grow and attract investment from the industry.
TNDIC: Everything You Need To Know
TNDIC has positioned itself as a prime investment destination in India. With a robust business environment and integrated infrastructure, the state of Tamil Nadu is the country’s second-largest contributor to the Gross State Domestic Product (GSDP). The TNDIC encompasses five industrial nodes – Chennai, Hosur, Salem, Coimbatore, and Trichy – which are well connected to each other and the rest of India.
To develop the TNDIC, the Government of Tamil Nadu implemented a strategy that involves establishing standard manufacturing and testing facilities, providing incentives to industries, supporting research and development (R&D) initiatives of the private sector, and promoting skill development. To implement this strategy, the state launched a state-specific aerospace and defence (A&D) policy in January 2019 to attract investment, generate employment, and create a global workforce for high-end manufacturing.
The state is seen as the home to premier academic institutes and a large pool of trained human resources, making it well-equipped to support the development of the A&D industry. The government has been setting up many skills development centres in collaboration with educational and industrial organisations to arm its human capital with the required skills. The government has been developing defence parks in each of the five nodes, along with common testing facilities, vendor parks, and special incentives for Tier-1 companies and Micro, Small, and Medium Enterprises (MSMEs).
IADB had previously reported that the Tamil Nadu Industrial Investment Corporation (TIIC) had signed an MoU with the Society of Indian Defence Manufacturers (SIDM) and the Confederation of Indian Industries (CII) to proactively catalyse and facilitate defence manufacturing in the state. The government conducts regular workshops for MSMEs to help them understand the specific requirements of the A&D sector, and special incentives are being offered to companies making investments over INR 30 billion on a case-by-case basis.