Economy of South India

2022-06-27T13:58:23Z

49.207.207.168:

{{short description|Overview of the economy of South India}}
{{more citations needed|date=November 2019}}
{{Use British English|date=December 2013}}
{{Use dmy dates|date=October 2020}}

{|class="wikitable collapsible" style="font-size: 0.90em; width: 400px; float: right;"
! colspan="3" style="background:teal; color:white; align:center;"| '''Economic and demographic indicators'''<ref name=ecoindicators>[http://outlookindia.com/full.asp?fodname=20070716&fname=HThe+Stats&sid=1 Also A Head For Numbers] {{webarchive|url=https://web.archive.org/web/20130502014202/http://outlookindia.com/full.asp?fodname=20070716&fname=HThe+Stats&sid=1 |date=2 May 2013 }}. Outlook India. 16 July 2007</ref>
|-
|'''Parameter''' ||'''Southern states of India'''||'''National'''
|-
|Per capita [[net domestic product|net state domestic product]] (SDP)
|₹234712.16
(US$3,200)
|₹[[Economy of India|162416.60]]
(US$2,191)

|-
|Percentage share in total [[foreign direct investment|FDI]] approved (1993–2003)
|5.48
|4.12
|-
|Average annual growth of SDP
|5.6
|3.6
|-
|Percentage of population below poverty line
|15.41
|29.10
|-
|Percentage of urban population (%)
|35.82
|23.81
|-
|Percentage of households with electricity (%)
|98.91%
|67.4
|-
|[[Literacy rate]]
|82.87
|75<ref name="ciastats">[https://www.cia.gov/the-world-factbook/countries/india/ India]. World Factbook. <u>Central Intelligence Agency</u>. 20 March 2008</ref>
|}

'''Economy of South India'' after [[Independence of India|independence]] in 1947 conformed to a socialist framework, with strict governmental control over [[private sector]] participation, [[foreign trade]] and [[foreign direct investment]] (FDI). Through 1960–1990, South Indian economies experienced mixed economic growth. In the 1960s, Kerala achieved above-average economic growth, while Andhra Pradesh's economy declined during this period. Similarly, Kerala experienced an economic decline in the 1970s while the economies of Tamil Nadu, Andhra Pradesh, and Karnataka consistently exceeded national average growth rates after 1970. Andhra Pradesh, Tamil Nadu and Karnataka were noted by some to be more [[Economic reforms in India|reform-oriented]] in terms of economic policy when compared to other Indian states.<ref>{{cite web|url=http://www.icrier.org/pdf/wp144.pdf|title=Working Paper No. 144 : Economic Growth in Indian States |publisher=Icrier.org |access-date=22 July 2015}}</ref> Over the last decade South India has grown at 8% annually. Future economic growth will be shackled by a relatively low proportion of the active age population to the number of dependents.{{Citation needed|date=October 2021}}

Over 48% of South India's population is engaged in agriculture, which is largely dependent on seasonal [[monsoon]]s. Some of the main crops cultivated in South India include [[Paddy field|paddy]], [[sorghum]], [[pearl millet]], pulses, [[sugarcane]], cotton, [[chile pepper|chilli]], and [[Finger millet|ragi]]. [[Areca]], coffee, tea, [[vanilla]], rubber, [[black pepper|pepper]], [[tapioca]], and [[cardamom]] are cultivated on the hills, while coconut grows in abundance in coastal areas. The region is the most industrialized in the country with the city of [[Chennai]], with a large automobile manufacturing presence, having the highest no of industries country-wide. Information Technology is a growing field in South India with [[Bangalore]] home to over 200 software companies. Three of the country's top software exporters{{mdash}}[[Bangalore]], [[Chennai]] and [[Hyderabad, India|Hyderabad]]{{mdash}}are located in South India.
{| class="wikitable collapsible" style="font-size: 0.90em; width: 400px; float: right;"
! colspan="7" style="background:teal; color:white; align:center;" | '''Economic Indicators'''
|-
|'''Parameter''' ||'''Andhra Pradesh'''||'''Karnataka'''||'''Kerala'''||'''Tamil Nadu'''||'''Telangana'''||'''All India'''
|-
|Per Capita Income By States (PCI) (2019–20)
|$2,409
|$3,082
|$3,040
|$3,200
|$3,049
|$1,884.98
|-
| Gross State Domestic Product (2019–20)
|₹10.80 lakh crore (US$150 billion)
|₹15.88 lakh crore (US$220 billion)
|₹8.75 lakh crore (US$140 billion)
|20.54 lakh crore
(US$290 billion)
|₹9.69 lakh crore (US$140 billion)
|₹209.19 lakh crore (US$2.9 trillion)
|}

== Andhra Pradesh ==
{{Main|Economy of Andhra Pradesh|Economy of Vijayawada|Economy of Visakhapatnam}}
[[Visakhapatnam district]] leads in [[Secondary sector of the economy|Industrial sector]] and [[Tertiary sector of the economy|Service sector]], which contributed {{INRConvert|17598|c|abbr=on}} and {{INRConvert|31372|c|abbr=on}} respectively. The per capita income of the state for 2014–15 was $$1,780.47

[[Primary sector of the economy|Agricultural sector]] is one of the chief sector contributing to the economy of [[Andhra Pradesh]]. Two important rivers of India, the [[Godavari River|Godavari]] and [[Krishna River|Krishna]], flow through the state, which provide fertile soil favourable for agriculture. The state is the main producer of [[Rice]] and hence, it is also known as ''Rice Bowl of India''.<ref name=rice>{{cite book|title=India Today |date=30 September 2011|publisher=ABC-CLIO|isbn=978-0-313-37462-3|page=36|url=https://books.google.com/books?id=wWDnTWrz4O8C&dq=Rice+Bowl+of+India&pg=PA36|access-date=15 November 2014}}</ref> Poultry is another sector in the state contributing to the economy of the state. The state is a leading egg producer and also nicknamed as ''Egg Bowl of Asia''.<ref>{{cite news |last1=Sally|first1=Madhvi|url=http://articles.economictimes.indiatimes.com/2012-12-14/news/35820226_1_egg-production-egg-consumption-total-egg|title=Egg production and consumption|access-date=27 June 2015|work=the Economic Times|date=14 December 2012|location=Ahmedabad}}</ref><ref name=egg>{{cite book |last1=Mohanty|first1=Muktikanta|title=Macmillan's General Knowledge Manual 2010 |date=2010|publisher=Macmillan|isbn=978-0-230-32874-7 |page=72 |url=https://books.google.com/books?id=PBx03lUGHlUC&dq=egg+bowl+of+asia&pg=PA72|access-date=15 November 2014}}</ref>

The state has also started to focus on the fields of [[Information technology]] and [[Biotechnology]]. Cities such as [[Visakhapatnam]] and [[Vijayawada]] have shown growth in IT exports. During 2012–13, the contribution of [[Visakhapatnam]] was {{INRConvert|1445|c|abbr=on}} while it was {{INRConvert|115.26|c|abbr=on}} for [[Vijayawada]]. This is a chart of trend of gross state domestic product of Andhra Pradesh at market prices by ''Ministry of Statistics and Programme Implementation'' with figures in crores of Indian Rupees. Accordingly, the state ranks fourth in terms of overall gross state domestic product and fourth in per capita gross state domestic product among the major states of India.<ref>{{cite web|url=http://mospi.nic.in/6_gsdp_cur_9394ser.htm|title=MOSPI|url-status=dead|archive-url=https://web.archive.org/web/20160303231836/http://mospi.nic.in/6_gsdp_cur_9394ser.htm|archive-date=3 March 2016}}</ref>

==Karnataka==
{{Main|Economy of Karnataka|Software industry in Karnataka|Banking in Karnataka}}
[[Karnataka]]'s [[net domestic product|net state domestic product]] is of $47 billion. [[Bangalore|Bengaluru]], [[Mysore|Mysuru]], [[Mangalore|Mangaluru]] & [[Hubli–Dharwad|Hubballi-Dharwad]] are the major contributors, [[Belgaum|Belagavi]] & [[Kalaburagi]] are the other important cities contributing to the economy of [[Karnataka]]. Between 1992 and 2002, Karnataka attracted the fourth highest total [[Foreign Direct Investment]] approvals in India, to the tune of Rs. 21,566 million. Karnataka accounts for one third of India's Information technology exports. For the year 2006, the state is expected to bring in 37% of all IT revenues amounting to Rs. 370 billion ($8.2 billion). Nearly 35% of IT companies and 40% of bio-technology companies are based here. Agriculture in Karnataka, like most of India, employs 80% of the population. Agriculture and its allied activities account for 49% of the state's income. The coastal plains of Karnataka, which include [[Uttara Kannada]] and [[Dakshina Kannada]] are cultivated with rice and [[sugarcane]]. Coffee and Tea are also grown on the slopes of the Western Ghats in the district of [[Kodagu district|Kodagu]], [[Chikmagalur district|Chikkamagaluru]] and [[Hassan district|Hassana]]. Karnataka produces 70% of India's coffee, of which about 50% is exported. The [[Chernozem|black soil]] in the northwest of the state, is hospitable for the growth of cotton, onion, course cereal, [[sunflower]] and peanuts.

The forests of the [[Malenadu]] region produce timber, [[bamboo]] and [[sandalwood]]. Karnataka is the only exporter of sandalwood in the country. Most of the world's sandalwood oil is produced in Karnataka. All of India's gold comes from the [[Kolar district|Kolar]] district of Karnataka. Karnataka is also rich in minerals which form the bulk of the raw materials for iron and steel industries in the state such as the one at Bhadravati. All of India's Iron ore comes from the Malnad region. The first power station in Asia was set up in Karnataka at Shivanasamudra in 1902 to produce [[hydroelectricity|hydroelectric]] power. Karnataka has 18 power stations which generate annually 16,513 million units. The state, however generates insufficient power and is forced to buy electricity from neighbouring states.

=== Mangaluru ===
{{Main article|Economy of Mangalore}}

One of the biggest business centres & the fastest growing cities in [[India]]. It is the best city to do business, after the capital [[Bangalore]] in [[Karnataka]]. It is the major & the fastest growing city in [[Karnataka]] only after [[Bangalore]]. It is the largest city in the [[Coastal Karnataka|Coastal]] and [[Malenadu|Malnad regions]] of Karnataka, besides being a leading commercial, industrial, educational, healthcare and petrochemical hub on the West Coast. It is also the 13th best business destination in India and 2nd best in Karnataka.<ref>{{cite web|url=http://www.rediff.com/business/slide-show/slide-show-1-indias-21-best-cities-for-business-bangalore-tops-/20131023.htm#12|title=India's 21 best cities for business, Bangalore tops|date=23 October 2013|work=Rediff}}</ref> One of the largest SEZ's in India, the ONGC [[MSEZ]] is in Mangalore. The way in which the city is growing can be gauged by pace of growth of real estate industry.<ref>{{cite web|url=http://www.mangaluruonline.in/city-guide/real-estate-industry-in-mangalore|title=Real Estate Industry in Mangalore|work=mangaluruonline.in}}</ref><ref>{{cite web|url=http://articles.economictimes.indiatimes.com/2008-01-13/news/28437828_1_tier-iii-cities-knight-frank|title=South India tops North for tier-III realty development|work=timesofindia-economictimes}}</ref> Mangalore's economy is dominated by the industrial, commercial, agricultural processing and port-related activities. Karnataka's 2nd biggest industrial area-[[Baikampady]] is in Mangalore. The [[New Mangalore Port]] is India's seventh largest port, in terms of cargo handling. It handles 75 per cent of India's coffee exports and the bulk of its cashew nuts. The city's major enterprises include [[Mangalore Chemicals & Fertilizers|Mangalore Chemicals and Fertilizers Ltd. (MCF)]], [[Kudremukh Iron Ore Company]] Ltd. (KIOCL), [[Mangalore Refinery and Petrochemicals Limited|Mangalore Refinery and Petrochemicals]] Ltd. (MRPL), [[BASF]], [[Bharati Shipyard Limited]] and [[Total oil|Total Oil]] India Limited (ELF Gas). [[Mangalore]] is one among the only 5 cities in the country to have both a Major [[New Mangalore Port|Port]] and an International [[Mangaluru Airport|Airport]]. Mangalore also has an IT Park called Soorya IT Park in Mudipu. Mangalore is also home to the [[National Institute of Technology Karnataka|National Institute of Technology, Karnataka]].<ref>{{cite web|url=http://www.prnewswire.com/news-releases/alsbridge-names-next-top-10-indian-cities-for-the-future-of-it-outsourcing-51654662.html|title=Alsbridge Names Next Top 10 Indian Cities for the Future of IT Outsourcing|author=Alsbridge|date=28 March 2007|work=prnewswire.com}}</ref> Major information technology (IT) and outsourcing companies like [[Infosys]], [[Cognizant|Cognizant Technology Solutions]], [[Mphasis|MphasiS BPO]], [[Thomson Reuters]], [[Endurance International Group]] have established a presence in Mangalore. Plans to create three dedicated I.T. parks are underway, with two parks (Export Promotion Industrial park (EPIP) at Ganjimutt and Special Economic Zone (SEZ) near Mangalore University) currently under construction. A third IT SEZ is being proposed at Ganjimutt. Another IT SEZ, sponsored by the BA group, is under construction at [[Thumbe]] and spans 2 million square feet (180,000 m<sup>2</sup>).

The [[Oil and Natural Gas Corporation|Oil and Natural Gas Corporation (ONGC)]] plans to invest over ₹35000 crore (US$5.15 billion) in a new 15 million tonne refinery, petrochemical plant and power, as well as LNG plants at the Mangalore Special Economic Zone. Indian Strategic Petroleum Reserves Ltd, a special purpose vehicle under the Oil Industry Development Board, is developing strategic crude oil reserves in Mangalore and two other places in India. Out of the proposed 5 million metric tonnes (MMT) storage, 1.5 MMT would be at Mangalore. According to an International edition of ''India Today'' (28 November – 4 December 2006), Mangalore is the fastest growing non-metro in South India.

[[Corporation Bank]], [[Canara Bank]], and [[Vijaya Bank]] were the three nationalised banks established in Mangalore during the first half of the 20th century. [[Karnataka Bank]], founded in Mangalore, was one of the largest banks to have not been taken over by the Government. The ''Mangalore Catholic Co-operative Bank (MCC Bank) Ltd''. and ''SCDCC Bank'' were the scheduled banks established in Mangalore. Mangalore city is the one of the best connected cities in South India with 4 National Highways (17,48,13 & 169; all old numbers), apart from other roadways, railways, waterways and airways. [[Udupi]] the temple city is contributing towards the higher education with large number of professional colleges in [[Manipal]]. It is also the home of the software company ''Robosoft Technologies''.

=== Hubballi-Dharwad ===
Hubli-Dharwad is the second largest city in Karnataka, in terms of area and population, and is one of the 49 Metropolitan clusters selected by [[McKinsey & Company]] as growth hotspots in India.<ref>{{cite news|last1=Srivats|first1=K. R.|title=McKinsey identifies 49 metropolitan clusters that could be growth hotspots|url=http://www.thehindubusinessline.com/economy/mckinsey-identifies-49-metropolitan-clusters-that-could-be-growth-hotspots/article6547995.ece|access-date=27 June 2015|work=The Hindu Business Line|date=30 October 2014|location=New Delhi}}</ref> It is also a major city in terms of Administration, Business and Commerce in [[Karnataka]] after [[Bangalore]] and [[Mangalore]].<ref>{{cite web|url=http://www.travelindiapro.com/cities/detail/basic/hubli-dharwad|title=hubli Dharwad region}}</ref><ref>{{cite web|url=http://www.livemint.com/Companies/NTVzb4CfvqoIgHrHg4REBO/Air-Pegasus-starts-commercial-operations.html|title=Air Pegasus starts commercial operations|author=P.R. Sanjai|work=livemint.com/}}</ref><ref>{{cite web|url=http://www.thegatewayhotels.com/lakeside-hubli/overview.html|title=Business Hotel in Hubli - The Gateway Hotel Lakeside Hubli, part of The Taj Group|work=thegatewayhotels.com}}</ref> It is the nerve centre for North Karnataka region. It is the fastest growing city after the capital, [[Bangalore]] and the port city [[Mangalore]].<ref>{{cite web|url=http://www.airpegasus.in/route-map.php|title=Air Pegasus - Our Route Map|author=Air Pegasus Pvt Ltd|work=airpegasus.in|url-status=dead|archive-url=https://web.archive.org/web/20150523063925/http://airpegasus.in/route-map.php|archive-date=23 May 2015}}</ref> It is the Headquarters of South Western Railway, and the Hubli Division of SWR is one of the highest revenue generating railway divisions in India. The High Court of Karnataka is situated at Belur in Hubli-Dharwad, it also has the largest number of government offices outside Bangalore. The Agriculture Produce market at Amargol in Hubli is one of the largest markets in Asia and the cotton market is among the largest cotton markets in India. The city is a major industrial centre, the railway workshop set-up in 1880 is one of the oldest workshops in India and is also the largest holder of EMD locomotives of Indian Railway, the city is home to Tata Motors, Marcopolo, Hitachi Construction Equipment, Telcon, Sankalp Semiconductors etc. Infosys is about to start its operations from Hubli with a campus of over 50 acres.
Hubli, also known as Hubballi, is the second major city of Karnataka. The city has a huge Maharashtrian's effect on it. It was ruled by Marathas and Peshwas for a long time. In old times, Hubli used to be a business centre and it grew some useful things for trade such as cotton, peanuts and chilly.

The city is also named as chhota Mumbai and resides 550 km from Mumbai. It is a fast growing city and turning into a technology hub. It is also being seen as an alternative to Bangalore. Hubli is often known combined with Dharwad, a nearby city. The importance of these two cities can be understood by the fact that they have been recently selected by Indian Government for the smart city project.

=== Mysuru ===
Mysore is the third largest and a very important city in [[Karnataka]]. Being tagged as ''the Heritage City'', tourism is a major economic driver and while it is among the top tourist attractions in India, it is said to rank next only to [[Madame Tussauds]] in London in the list of most-visited tourist attractions receiving more than 3 million tourists per year.<ref name="business-standard.com">{{cite web|url=http://www.business-standard.com/india/news/mysore-too-may-host-mass-rapid-transit-system/453466/|title=Mysore too may host mass rapid transit system|author=BS|date=24 October 2011|work=Business Standard}}</ref>
On the IT front, [[Infosys]] has developed the world's largest corporate training centre in the city.<ref name="thehindu.com">{{cite news| url=http://www.thehindu.com/todays-paper/tp-features/tp-districtplus/article3362071.ece | location=Chennai, India | work=The Hindu | first=R. Krishna | last=Kumar | title=Welcoming the investor to Mysore | date=28 April 2012}}</ref> Mysore is the second largest exporter of IT in the state<ref name="business-standard.com" /> and it houses nearly 60 major and minor IT players registered with the Software Technology Park of India [STPI], Mysore<ref name="thehindu.com" /> and this includes [[Infosys]], [[WIPRO]] Technologies, [[IBM]] software, Paradigms India, WIFI Net, Logrosoft, Excel soft and [[Larsen & Toubro Infotech]], Theorem etc.<ref>{{cite web|url=http://www.rediff.com/money/2007/may/15mysore.htm|title=Bangalore IT majors eye Mysore option|work=rediff.com}}</ref> Mysore figured high in the vibrancy index survey of [[Morgan Stanley]] India last year.<ref name="thehindu.com" /><ref>{{cite web|url=http://www.morganstanley.com/about/press/articles/67f77832-c3eb-46fc-b4d3-40cf8fdb9abd.html|title=Morgan Stanley - Press Release - Morgan Stanley Launches India Urbanization Index; Bangalore, Hyderabad and Pune Ranked "Most Vibrant"|work=morganstanley.com}}</ref> Mysore & Bangalore account for more than 60% of the incense stick manufacture & export.<ref>http://www.advantagekarnataka.com/images/district-profiles/Mysore-District-Profile.pdf {{Bare URL PDF|date=March 2022}}</ref>

==Kerala==
[[File:nila2.jpg|right|thumb|200px|The interior of a building in the [[Technopark Kerala|Technopark]], at [[Thiruvananthapuram]] ([[Trivandrum]]). 70% of the state's IT exports are from [[Technopark Kerala|Technopark]]]]
[[Kerala|Kerala's]] economy is predominantly service based. As per a recent Niti Aayog report, Kerala has been ranked the most investment friendly state in India, and in terms of [[Human Development Index]] and life standard of the people, Kerala is ahead of all other states in India. In fact, in certain development indices it is on a par with some of the developed countries. This peculiar paradox is often termed as the "[[Kerala model|Kerala Phenomenon]]" or [[Kerala model]] of development by experts.

Kerala follows a mixed [[capitalist]]-[[welfare economy]]. In fact, the state's strong emphasis on social welfare has also resulted in slow economic progress. There are few major industries in Kerala, but the per capita GDP is higher than the national average. Remittances from Keralites working abroad, mainly in the Middle East, makes up a large share in Kerala's Gross Domestic Product.

However, today, the state is emerging as a future IT centre of India, owing to its high internet connectivity (undersea cable landing points at Kochi), along with skilled labour. The government has established three IT Parks in the state are [[Technopark Kerala|Technopark]] in [[Trivandrum]] and [[InfoPark, Kochi|Infopark]] in [[Kochi, India|Kochi]] and [[Cyberpark]] [[Calicut]]. The [[Technopark Kerala|Technopark]] at Trivandrum is the third largest IT park in Asia, and the largest in India.<ref name="India's biggest IT park">{{cite news
| url = http://www.inrnews.com/realestateproperty/india/kerala/indias_largest_it_park_opened_in_kerala_inrnews.html
| title = Technopark to become India's biggest IT park
| publisher = INRnews
| date = 15 February 2007
| access-date = 2007-02-17
| archive-url = https://web.archive.org/web/20070514110934/http://www.inrnews.com/realestateproperty/india/kerala/indias_largest_it_park_opened_in_kerala_inrnews.html
| archive-date = 14 May 2007
| url-status = dead
}}</ref> In addition to Inforpark in Kochi, an IT park named as [[SmartCity, Kochi|Smartcity]] by [[Dubai Internet City]] is under construction. Kochi is a safe natural harbour, and hence one of the most important ports of India. A new [[International Container Transshipment Terminal, Kochi|International Container Transshipment Terminal]] is commissioned at [[Vallarpadam]], which is expected to be a major transshipment port in India.<ref name="Vallarpadam">
{{cite news
| url=http://www.hindu.com/2005/04/02/stories/2005040202321500.htm
| archive-url=https://web.archive.org/web/20050406123043/http://www.hindu.com/2005/04/02/stories/2005040202321500.htm
| url-status=dead
| archive-date=6 April 2005
| title=Kochi terminal handed over to Dubai Ports International
| date=2 April 2005
| access-date=2006-05-23
| work=[[The Hindu]]
| location=Chennai, India
}}
</ref><ref name="Vallarpadam1">
{{cite news
| url=http://www.thehindubusinessline.com/2006/06/13/stories/2006061302240700.htm
| title= Vallarpadam phase I by early 2009: DP World
| work=The Hindu
| date=2 April 2005
| access-date=2006-05-23
}}
</ref><ref name="ICTT Vallarpadam">
{{cite news
| url=http://www.thehindubusinessline.com/2008/10/27/stories/2008102750370600.htm
| title= Vallarpadam ICTT: Set to make Kochi a key hub
| work=The Hindu Business Line
| date=27 October 2008
| access-date=2008-11-14
}}
</ref><ref name="Logistic Hub">{{cite news|url=http://trbaalu.nic.in/minister/press/2005/Feb05/16_02.pdf |title=Statement by the Government of India |publisher=Press Information Bureau, Govt of India |date=27 October 2008 |access-date=2008-11-14 |url-status=dead |archive-url=https://web.archive.org/web/20090225121423/http://trbaalu.nic.in/minister/press/2005/Feb05/16_02.pdf |archive-date=25 February 2009 }}
</ref> In addition, the construction of the proposed mega Deep Water Container Transshipment Port at Vizhinjam near [[Trivandrum]] is expected to boost up the economy of the state.

[[Coconut]], tea and coffee are grown extensively, along with rubber, [[cashew]] and spices. Spices commonly cultivated in Kerala include [[black pepper|pepper]], [[cardamom]], [[vanilla]], [[cinnamon]] and [[nutmeg]]. Much of Kerala's agriculture is in the form of [[Residential garden|home gardens]].
[[File:KovalamBeach.JPG|thumb|right|200px|Dusk in [[Kovalam]] beach, [[Trivandrum]]]]
Unemployment is typically high in Kerala, though a recent study by centre for development studies in trivandrum have shown unemployment rate down to 9%.Traditional low-wage [[cottage industries]] such as the processing of [[coconut]] fibre and cashew or weaving employ most workers. More half of Kerala's workers are employed in the [[Service (economics)|service]] sector.

One of the major ship building yards of India is in Kerala at [[Kochi, India|Kochi]]. The Southern Naval Command of India has its headquarters in Kochi, and the Southern Air Command headquarters is in [[Thiruvananthapuram]] (Trivandrum). There are four international airports in Kerala. They are [[Trivandrum International Airport|Trivandrum]], [[Cochin International Airport|Cochin]], [[Calicut International Airport|Kozhikode]] and [[Kannur International Airport|Kannur]]. [[Cochin International Airport]] is the first International Airport in India that has been built with private participation, without the Central Government's stake.

Kerala is also one of the tourist hot-spots of India. It was proclaimed as one of the ten paradises on earth by the [[National Geographic Society|National Geographic]] traveller. The state has also won a large number of awards for its [[ecotourism]] initiatives.<ref>{{cite web|url=http://ibnlive.in.com/news/kerala-becomes-first-indian-state-to-win-top-un-award-in-tourism/447589-62-126.html|archive-url=https://web.archive.org/web/20140126145442/http://ibnlive.in.com/news/kerala-becomes-first-indian-state-to-win-top-un-award-in-tourism/447589-62-126.html|url-status=dead|archive-date=2014-01-26|title=Kerala becomes first Indian state to win top UN Award in Tourism|work=IBNLive}}</ref>

==Tamil Nadu==
{{Main|Economy of Tamil Nadu|Automotive industry in Chennai}}
[[File:Tidel Park.jpg|thumb|right|[[Tidel Park]] in Chennai was Asia's largest IT park when it was built in 2000.]]
[[Tamil Nadu]]'s [[net domestic product|net state domestic product]] is the second largest economy in India. Tamil Nadu is the second largest state economy after Maharashtra with a gross state domestic product of {{INRConvert|2134395|c|lk=|year=2020}}. With GDP per capita of $3,000 it ranks fourth among Indian states. It is second most industrialized state in India next to Maharashtra. It ranks second in per capita income (2017–2018) among large states. It ranks third in [[foreign direct investment|foreign direct investment (FDI)]] approvals (cumulative 1991–2002) of {{INRConvert|22582.6|c}}, next only to Maharashtra ({{INRConvert|33602.4|c}}) and Delhi ({{INRConvert|30303.8|c}}). The State's investment constitutes 9.12% of the total FDI in the country.<ref>{{cite web|title=Tamil Nadu ranks third in FDI, favoured destination|url=http://www.hindu.com/2005/04/22/stories/2005042211030100.htm|archive-url=https://web.archive.org/web/20050424024708/http://www.hindu.com/2005/04/22/stories/2005042211030100.htm|url-status=dead|archive-date=24 April 2005|work=[[The Hindu]]|date=1 January 2008}}</ref> According to the 2001 Census, Tamil Nadu has the highest level of urbanisation (43.86%) in India, which accounts for 6% of India's total population and 9.6% of the urban population.

[[Chennai]] houses the automobile manufacturing giants in the country. More than 65% of heavy vehicles produced in the country, such as cars, buses, lorries, trains and bicycles, are produced in Chennai, and it is referred to as the Detroit of Asia. [[Coimbatore]] (also known as "Cotton City" and "Manchester of South India") in Tamil Nadu is the source of nearly 35% of India's yarn production from cotton.
[[Arni, Tiruvannamalai|Arni]] is well known for raw silk production & India’s largest raw silk export hub. [[Vellore]] is the largest hub for Leather processing. [[Erode]] is well known for its Turmeric and textile products. [[Tirupur]] is the largest producers of cotton vests and inners ; it exports much of its production to South East Asia and European countries. [[Karur]] is the India's largest home textiles production & export hub. [[Gobichettipalayam]] is one of the largest producers of White silk with the country's first automatic silk reeling unit established here. [[Namakkal]] is one of the largest producers of poultry in the country.

'''[[Salem Steel Plant]] (SSP)''', a unit of [[Steel Authority of India|Steel Authority of India Limited]] (SAIL), is a [[Steel mill|steel plant]] involved in the production of [[stainless steel]].<ref name=":0">{{Cite web|title=Salem Steel Plant {{!}} SAIL|url=https://sail.co.in/special-steel-plants/salem-steel-plant|access-date=2020-05-30|website=sail.co.in}}</ref> It is located along the [[Salem, Tamil Nadu|Salem]] — Bangalore [[National Highway 44 (India)|National Highway 44]] in the foothills of [[Kanjamalai]] in [[Salem district]], [[Tamil Nadu]], India.<ref name=":1">{{Cite web|title=PROFILE OF SALEM STEEL PLANT (SSP)|url=https://sg.inflibnet.ac.in/bitstream/10603/23165/7/07_chapter%202.pdf|access-date=30 May 2020|website=sg.inflibnet.ac.in}}</ref><ref name=":2">{{Cite journal|last1=M|first1=Prakash|last2=M|first2=Manickam|year=2014|title=A Salem Steel plant an Overview|url=https://theinternationaljournal.org/ojs/index.php?journal=rjcbs&page=article&op=download&path%5B%5D=2803&path%5B%5D=pdf|journal=Research Journal of Commerce and Behavioural Science|publisher=The International Journal Research Publications|volume=3|pages=8|issn=2251-1547}}</ref> The plant has an installed capacity of 70,000 tonnes per annum in its cold rolling mill and 3,64,000 tonnes per annum in the hot rolling mill.<ref name=":0" /> It also has the country's first stainless steel blanking facility.<ref name=":3">{{Cite news|last=Dutta|first=Indrani|date=2010-07-12|title=Salem Steel's expansion set to be completed by September|language=en-IN|work=The Hindu|url=https://www.thehindu.com/business/Salem-Steels-expansion-set-to-be-completed-by-September/article16194342.ece|access-date=2020-05-30|issn=0971-751X}}</ref>

Tamil Nadu has most number of engineering Institutions in India. Chennai is referred as the [[Gateway of South India]]. Chennai is the second leading Software exporter in India. Companies such as [[Cognizant]], [[Covansys]], [[Xansa]], [[Verizon]], [[iSoft]], [[Invensys]], [[Schneider Electric]] and many others are Chennai based companies in India. [[Infosys]] has set up India's largest software development centre to house 25,000 software professionals at an estimated investment of Rs 12.50 billion (Rs 12.5 [[1000000000 (number)|billion]]) in Chennai.<ref>{{cite web|url=http://in.rediff.com/money/2004/feb/26infosys.htm|title=Infosys sets up center|access-date=1 January 2008}}</ref> Chennai has become the most preferred BPO hub in India and South Asia. Chennai is sometimes referred to as the ''[[Health Capital of India]]'' or the ''[[Banking Capital of India]]'', having attracted investments from International corporations and the [[World Bank]] and it is called as ''[[Detroit of Asia]]''.

Tamil Nadu has a network of about 110 industrial parks/estates that offer developed plots with supporting infrastructure.<ref name=tidel>{{cite web|url=http://www.tidelpark.com/|title=Tidel Park}}</ref><ref>{{cite web|url=http://www.itpchennai.com/|title=International Tech Park Chennai|work=itpchennai.com|access-date=10 April 2006|archive-url=https://web.archive.org/web/20061114192436/http://www.itpchennai.com/|archive-date=14 November 2006|url-status=dead}}</ref> Also, the Government is promoting other industrial parks like Rubber Park, Apparel Parks, Floriculture Park, TICEL Park for Biotechnology,<ref name =ticel>{{cite web|url=http://www.ticelbiopark.com/ |title=Ticel Bio Park}}</ref> Siruseri IT Park, Agro Export Zones among others.

The heavy engineering manufacturing companies are centred around the suburbs of Chennai. Chennai boasts presence of global car manufacturing giants like [[Ford Motor Company|Ford]], [[Daimler AG|Daimler]], [[Hyundai Motor Company|Hyundai]], [[BMW]], [[Mitsubishi]], [[Komatsu Limited|Komatsu]], [[Yamaha]], [[Nissan]] and [[Renault]] as well as home grown companies like [[Madras Rubber Factory|MRF]], [[JK Tyre]], [[TI Cycles of India]], [[Ashok Leyland]] [[TVS Group|TVS]] and [[Mahindra and Mahindra]]. Chennai is also home to [[Indian Institute of Technology Madras|Indian Institute of Technology, Madras]]. The Koyambedu Bus Stand (Asia's largest bus stand) operated by CMDA is the first bus stand in India to get the global positioning system which will use sensors to track vehicles on the move. [[Kalpakkam]] nuclear power plant, [[Neyveli Lignite Corporation]], and the Narimanam natural gas plants provide sources of fuel and energy for the nation. 55% of electricity from [[wind power]] produced in India from wind mills comes from Tamil Nadu. The Kalpakkam Mini Reactor (Kamini) is the only U-233fueled operating reactor in the world.

[[Coimbatore]], also known as the ''Manchester of South India'', is one of the fast developing cities in India and the second largest city in Tamil Nadu. Coimbatore is also known for its textile factories, engineering firms, automobile parts manufacturers, health care facilities, educational institutions, wet grinders and water pumps. 76% of India's total textile market is from [[Erode]] (''Loom City'') and [[Tirupur]] (''Textile City''). It exports much of its production to [[South East Asia]]n and European countries.
[[Karur]] (''Home Textile City'') is the India's hub for home textiles production & export. It contributes over 60% of total production of India. Karur is also known for its bus bodybuilding (contributes 80% of South Indian bus body building). [[Karur]] TNPL is the Asia's largest eco friendly paper mill in production. Erode is also known as the ''Turmeric City'', since it has the Asia's largest market for Turmeric. [[Gobichettipalayam]] is one of the largest producers of White silk with the country's first automatic silk reeling unit established here. [[Namakkal]] is one of the largest producers of poultry in the country. [[Salem, Tamil Nadu|Salem]] is called as steel city and has many sago producing units, mineral wealth. [[Sivakasi]] is the leader in printing, fireworks, safety matches production in India. It contributes 80% of India's total safety matches production and 90% of India's total fireworks production.
Thoothukudi is the gateway of Tamil Nadu. it is a major chemical producer only next to chennai. As of 1980's Asia's largest chemical industry DCW Ltd, is situated in the district. And many more chemical industries such as SPIC, Sterlite copper, VV Titanium pigments, Tuticorin Alkali Chemicals, HWP-Tuticorin, Ferron Steels, etc.

[[Biotechnology industrial park|Biovalley]]s in Tamil Nadu include Biotechnology Incubator Park Near Chennai, Women's Biotechnology Park Kelambakkam,<ref>{{cite web|title=Golden Jubilee Biotech Park for Women Society: Existing units|url=http://www.biotechpark.com/existingunits.html|archive-url=https://web.archive.org/web/20080226071822/http://www.biotechpark.com/existingunits.html|archive-date=26 February 2008|url-status=dead}}</ref> Medicinal Plants Biotechnology Park, Madurai, Marine Biotechnology Park, [[Mandapam]] and Bioinformatics and Genomics Centre (BGC), Chennai.<ref name="tidel"/><ref>{{cite web|title=Indian firms embrace biotechnology|url=http://news.bbc.co.uk/1/hi/world/south_asia/1264569.stm|publisher=BBC News|date=1 January 2008}}</ref>

[[Tiruchirappalli]] is a major engineering equipment manufacturing hub in Tamil Nadu. It also home to [[National Institute of Technology, Tiruchirappalli]], a premier technical university of India. The [[Golden Rock Railway Workshop]], moved to Tiruchirappalli from [[Nagapattinam]] in 1928, is one of the three railway [[workshop]]–cum–production unit in Tamil Nadu.<ref name="colonialismp126">{{cite book|title=Children of Colonialism: Anglo-Indians in a Postcolonial World|page=126|author=Lionel Caplan|publisher=Berg Publishers|year=2003|isbn=1859736327|id=}}</ref> The workshops produced 650 conventional and low-container flat wagons during the year 2007–08.<ref name="goldenrock_thehindu20080411">{{cite news|title=Golden Rock railway workshop rolls out stainless steel wagon prototype|url=http://www.hindu.com/2008/04/11/stories/2008041156540200.htm|archive-url=https://web.archive.org/web/20080414210046/http://www.hindu.com/2008/04/11/stories/2008041156540200.htm|url-status=dead|archive-date=14 April 2008|author=P. Rajaram|date=11 April 2008|work=[[The Hindu]]|location=Chennai, India}}</ref><ref name="toi_20101216">{{cite news|title=Southern Railway to launch new generation locomotive to save power|url=http://timesofindia.indiatimes.com/city/chennai/Southern-Railway-to-launch-new-generation-locomotive-to-save-power-/articleshow/7108514.cms|date=16 December 2010|work=The Times of India}}</ref>

==Telangana==
{{Main|Economy of Telangana|Software industry in Telangana|Economy of Hyderabad}}
[[File:IlabsCentre.jpg|thumb|200px|HITEC City]]

Telangana has a significant amount of Software export in India. While the majority of the Industry is concentrated in Hyderabad, other cities are also becoming significant IT destinations in the state.

==See also==
*[[Economy of Tamil Nadu]]
*[[Economy of Telangana]]
*[[Andhra Pradesh#Economy|Economy of Andhra Pradesh]]
*[[Kerala#Economy|Economy of Kerala]]
*[[Karnataka#Economy|Economy of Karnataka]]

==References==
{{Reflist}}

[[Category:South India]]
[[Category:Economy of India]]

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Economy of South India