Industry department sources in Tamil Nadu have urged the state government to adopt a more cooperative approach with the Union government, arguing that perceptions of continued confrontation can deter investors and push projects to other states.
The officials pointed out that Tamil Nadu has strong fundamentals—highway connectivity across districts, major ports such as Chennai, Ennore and Thoothukudi, and airports in Chennai, Tiruchirappalli, Madurai, Thoothukudi and Salem. They also cited the availability of engineering graduates and skilled workers, noting that the state leads the country in the share of women employed in factories, at 42%.
Despite these advantages, the sources said several investments that were discussed with Tamil Nadu later moved to Andhra Pradesh. They cited talks held earlier for a Google artificial intelligence and data centre, and discussions with companies including Carrier and LG Electronics, which they said ultimately invested in Andhra Pradesh.
They also referred to a non-leather footwear project by Hwasung, for which an MoU had been signed in Tamil Nadu, but which later shifted its investment to Andhra Pradesh. In another instance, they said Tamil Nadu officials had been in talks for three years with the Aeronautical Development Agency under DRDO for a fighter aircraft integration and advanced flight testing centre, and had even offered free land in Hosur, but the foundation stone was recently laid for the facility at Puttaparthi in Andhra Pradesh.
The sources said it is legitimate to oppose Union government actions seen as against state rights, but sustained confrontation creates discomfort for officials dealing with central departments and can affect projects that require central approvals and incentives in sectors such as defence, aerospace and electronics. With a change in government, they urged the Vijay-led Tamil Nadu administration to engage more harmoniously with the Centre to improve investor confidence.
