TAMIL NADU'S BUMPY ROAD TO $1 TN

TAMIL Nadu aspires to become a $1-trillion economy by 2030.

- B CHANDRASEKARAN

However, it seems feasible only after 2031-32 given the amount of work needed on multiple fronts, ranging from effective decentralised governance and sectoral growth challenges to addressing intrastate regional disparities. While the state's strength of being a global hub for manufacturing and its significant contribution to the services sector make the headlines, certain challenges remain under-discussed.

Almost two years have passed since the release of a plan titled 'Tamil Nadu Vision $1 trillion', which aimed to "ensure that all districts and regions of the state emerge as growth centres, while driving prosperity for all sections of the society". Yet, there has been a little visible change in implementing its key recommendations.

In a dynamic federal country like India, state governments often tussle with the Centre seeking more regional autonomy. Ironically, some of the same states fare poorly in decentralisation of administrative power and financial autonomy within, despite a mandate for it under the 73rd and 74th constitutional amendments in 1992.

The challenges faced by Tamil Nadu, especially its urban and rural local bodies, including its limited capacity to meet the aspirations of the people for better civic infrastructure facilities and services could be mostly attributed to inadequate institutional mechanisms. One of the biggest institutional and structural lacunae is that despite about 55 percent of people living in urban areas, the devolution of funds continues to be higher for rural local bodies (51 percent) as compared to urban local bodies (49 percent).