South India driving growth, say experts

South India driving growth, say experts

“The southern states have been contributing about 23 per cent of the overall GDP and 28 per cent of total employment in India since 2000 is generated from the South,” Infosys CEO S Gopalakrishnan said.

He also informed that $75 billion worth of investments have been attracted by the region in the last five years, of which $65 billion has come through domestic investment and $10 billion has come from abroad.     
           
Gopalakrishnan said that sevral factors such as rapid industrialisation and urbanisation has led to the Southern states being ranked as one each among the top 10 states in the country. Noting that Karnataka has commendably developed IT, ITES and Aerospace, Andhra Pradesh has developed IT and pharma, Tamil Nadu is providing scope for developing auto industry, while Kerala and Pondicherry are enhancing tourism potential, he said there is diversity in investment in the region.

But a lot of bottlenecks and speed-breakers need to be addressed if the growth momentum is to be upheld. CII brought out the findings by a study conducted by McKinsey & Co, “Retaining the Edge: Sustaining South India’s Growth Momentum”, which said that the GDP of the four South Indian states has begun to decline, in recent times, with Tamil Nadu and Andhra Pradesh drifting below the national average. 
    
Focusing on cluster-based approach and laying scope on a few high-potential sectors, developing physical and social infrastructure and thereby sustaining development would act as enablers to maintaining growth, the study found, adding that emphasis must be on rigorous implementation and execution of policies.