CHENNAI SUPER EXPRESS
Tamil Nadu featured among the top 10 large states in 11 out of 12 categories; the state’s welfare schemes were key
Anew controversial blockbuster, Sarkar, starring popular hero Vijay, seems to suggest that populism has no place in Tamil Nadu. In reality, this is a state that thrives on nurturing its constituents with subsidies and nuanced welfare schemes. While the mid-day meal programme for school children and social security (pension) for the elderly—introduced in the 1980s by the late M.G. Ramachandran, founder of the ruling AIADMK—were pioneering initiatives in the country, the state is now implementing many more, some even borrowed from other states, through 31 government departments.
Offering freebies packaged as welfare goods hit new highs between 2006 and 2016. Both the AIADMK and DMK governments pursued this line keenly to reel in voters. While the DMK (2006-11) distributed 11.6 million free colour television sets (spending Rs 3,687 crore), the AIADMK regime that followed (2011-16) handed out 11.7 million fans, mixies and grinders at a cost of Rs 7,686 crore.
“Political parties, in the guise of helping the poor, have fostered a dependence syndrome in the state. Meanwhile, they source sub-standard material as consumer goods through their cronies to help line their pockets and drain public funds. It all reeks of scandal and corruption,” says Prof. Ramu Manivannan of the Department of Political Science and Public Administration, University of Madras. Economists and state planners, though, perceive the subsidy culture differently. “The state’s record in implementing welfare schemes has contributed to the extremely low rate of multi-dimensional poverty, particularly in areas such as health, education and living standards. It makes a meaningful difference to the quality of life of the poor,” Paul Appasamy, a former director of the Madras School of Economics, points out, though he admits that sub-standard consumer durables as a poverty alleviation measure is questionable.
“The state’s most vital function is maintaining public order. Unless there is peace, we cannot have social and economic growth. Which is why Tamil Nadu’s growth model seeks to achieve development through inclusive growth. The aim is to rid society of inner tensions that may surface in the form of communalism or extremism,” explains a senior government official on condition of anonymity. “The switching of parties in power,” he goes on to emphasise, “has always been without losing sight of the fundamentals to ensure Tamil Nadu’s growth.”
Tamil Nadu is already the second largest contributor to India’s GDP, and is among only eight states to record poverty reduction at a rate higher than the all-India average. The state’s per capita income, at current prices, is Rs 1,53,263 (2016 -17), the third highest among large states. Tamil Nadu’s Human Development Index is second among large states and its socioeco-
nomic development status is again much higher than the national average.
With a population of 72 million, of which 80 per cent is literate and 48.5 per cent urbanised, Tamil Nadu is an innovation-based economy with a strong performance in manufacturing and services. It has a GSDP (manufacturing and services) of Rs 8,68,058.8 crore (2016-17) at current prices with a CAGR of nine per cent over the past decade. The services and industry sectors account for 93.8 per cent of the GSDP. The state contributes more than 26 per cent of the national output in paper, machinery, electronics, textiles, auto and auto components and leather products. There are more than 40,000 large industries and over 900,000 SMEs. The state has the largest number of factories (17 per cent) and industrial work force (16 per cent) in the country.
Tamil Nadu’s strong performance is largely due to its robust infrastructure and transparent regulatory framework. This has contributed to making Chennai the joint thirdhighest foreign investment destination following Mumbai and Delhi for a cumulative 15-year period (April 2000-September 2015) at $18 billion.
Much of this springs from the vision of the late chief minister J. Jayalalithaa and her ‘Vision Tamil Nadu 2023’ document from 2012. Under it, the state adopted multiple strategies to enhance competitiveness and efficiency in various sectors. Of the 217 projects identified across 13 sectors, work has been initiated in over 100 on which a decadal investment of a staggering Rs 15 lakh crore is being made since 2012.
Chief Minister E.K. Palaniswami puts it all down to “the state government effectively articulating the just sentiments of the people on critical issues, a big reason for Tamil Nadu maintaining public order”. The state has largely been free of organised violence. Enhanced financial allocations and welfare measures have improved the morale of the police force, essential for better service delivery. Women’s safety has been a high point. Tamil Nadu was the first state to pioneer all-women police stations and also has the highest proportion of women in the force.
The state is a popular healthcare destination and ranks ‘second lowest’
Tamil Nadu received 343.8 million domestic and 4.7 million foreign tourists in 2016-17, the highest in the country