Tamil Naidu lies on the Southern part of Indian Peninsula sharing border with Puducherry (Pondicherry), Karnataka, Kerala, and Andhra Pradesh. Spread over an area of 130,058 sq kms, it forms the eleventh largest state in the country. It has a long coastline of approximately 1,076 kilometres which is the second longest coastline in India.
Tamil Nadu is seventh most populous state with a density of 511 persons per sq km as per the statistics of 2008. the number has increased from 429 in the year 1991 which is much higher than the all India rate of 324 persons per sq km. Its literacy rate is 73.5 percent which is quite high as compared to many of the states in India.
On the industrial front, the state is doing well and is rated as one of the most industrialised states. A large number of manufacturing and engineering companies have their base in and around the suburbs of Chennai. Chennai has emerged as one of the most lucrative destinations for making investment. This can be attributed to a number of factors; prime being good infrastructure of roads, favourable climate fro investment, abundance of skilled manpower and low cost of business. The Government of Tamil Nadu constituted a Guidance Bureau in 1992 with the objective of attracting major investment proposals.
Tamil Naidu has a rich reserve of minerals with lignite forming 90 percent of the total reserves of India.
It accounts for 45 percent of magnesite and over 40 percent of garnet produced in the country. There are many players from the automobile industry who have selected Chennai as their hub for manufacturing. To name a few, we have Ford, Renault-Nissan, Hyundai, BMW, Mitsubishi, Mahindra & Mahindra and so on.
The textile sector of Tamil Nadu accounts for 14 percent of the total manufacturing and also there is a multitude of Textile Mills in Coimbatore. The city of Tirupur in Tamil Nadu is recognised as India's largest exporter of knit wears. There are also several consumer electronic manufacturing companies based in Tamil Nadu such as Nokia, Flextronics, Motorola, Foxconn and Dell.
The state government has taken up a number of policy initiatives to propel growth in the manufacturing and services sectors. Tamil Nadu has been constantly upgrading its infrastructure to meet the industrial need. Policy measures such as single window clearance system have paved way for the foreigners to invest in the state. Tamil Nadu was one of the first to formulate policies for the ITES and biotech industries. It has one of the lowest power tariffs in the country and is one of the few states to sell electricity to neighbours.