Tamil Nadu Finance Minister Palanivel Thiaga Rajan on Monday said while higher inflation was a bit of a problem, it won’t seriously damage the State’s economy.
He was delivering the inaugural address at a session organised by Confederation of Indian Industry in partnership with the Government of Western Australia on ‘Celebrating 25 years of Western Australia’s presence in India’.
Mr. Rajan pointed out that Tamil Nadu had reduced its revenue deficit and the stated goal was to be in revenue surplus in two years. He said the State would comfortably hit its growth target for the next two to three years, as it did in the last year.
“The targeted nominal growth rate is 15-16% and the real growth is 8-10%,” Mr. Rajan said. Numbers had been good so far this year as well, he said.
Mr. Rajan also pointed out that the Western Australian portion of the India-Australia trade had not kept up with average and it could be be improved.
He also pointed out that while policies were set at the national level, they had to be executed at the State level. Mr. Rajan said Tamil Nadu was the second largest economy in India and third biggest exporter, despite it accounting for only 6% of the total population. He highlighted other strengths including the large coastline, improved ranking in doing business among others.
In his address, Roger Cook MLA, Deputy Premier, Western Australia, said Tamil Nadu was the valued source of students and tourists to Australia.
He also pointed out that Chief Minister M.K. Stalin’s goal of a USD $1 trillion economy by 2030, threw up potential opportunities.
Mr. Cook said there were a lot of opportunities to be tapped between Western Australia and Tamil Nadu in sectors like education, health care, renewable energy among others.