Economy of Chennai

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The Chennai Port, one of the biggest in South Asia

Chennai, the capital city of the state of Tamil Nadu, India is the second largest industrial and commercial center of South India, behind only to Bangalore.[1] In 2017, Chennai had an estimated PPP GDP of US$78.6 billion.[2][3] Recent estimates of the economy of Chennai is around US$128.3 billion PPP GDP.[4][5][6][7][8]

Ennore Port
contribute greatly to its importance.

Chennai was recently rated as having the highest quality of life among Indian cities ahead of the other three metros and Bangalore, based on the "Location Ranking Survey" conducted by ECA International. Chennai has improved its global ranking to 138 in 2006–07 from 179 in 2002–03. It is now ranked at 26th position in Asia in terms of livability, up from 31st rank in 2002–03.

Mercer, Chennai received the second highest rating in India,[11] with New Delhi scoring the highest,[11] and came in at a relatively low 157th worldwide.[11] The reason was attributed to poor health and sanitation, and the increasing air pollution.[12] It has the distinction of being called as the Detroit of Asia
, due to its large manufacturing industry.

As of 2012, the city has about 34,260 identified companies in its 15 zones. Of these, 5,196 companies has a paid-up capital of over ₹ 5 million, about 16,459 companies are in the paid up capital range of ₹ 100,000 to ₹ 200,000, and 2,304 companies have a paid-up capital of less than ₹ 100,000.[13]

Software and software services

Main article: Software industry in Chennai
See also: List of tech parks in Chennai, Rajiv Gandhi Salai, and SEZ Corridor
Zoho headquarters in Chennai

Since the late 1990s, software development and

Special Economic Zone (SEZ) with one of the world's largest high technology business zones, is currently under construction in the outskirts of Chennai. It also includes the World's largest IT Park by Infosys.[17]

Electronics hardware

Main article:
EMS Industry in Chennai
See also:
Electronics Corridor

In recent years,

Sanmina-SCI is the latest company to invest in Chennai to create a state of the art manufacturing facility.[21] Nokia Networks has decided to build a manufacturing plant for wireless network equipment in Chennai.[22]

Engineering procurement and construction

Headquarters of L&T Construction in Manapakkam, Chennai

Chennai serves as the headquarters for some of Asia's largest engineering procurement and construction companies like

DNV GL, Saipem, Rotork, Technip, Foster Wheeler, Mott MacDonald, Petrofac, Vestas, Siemens Gamesa, Suzlon, and others. Austrian company "Austrian Energy and Environment" have also a design office here besides local giant Larsen & Toubro ECC
.

Automobiles

Main article:
Automobile industry in Chennai
See also:
Automotive Corridor
Hyundai's manufacturing plant at Irungattukottai near Sriperumbudur, Kanchipuram district

The city accounts for 60 per cent of India's automotive exports,

Daimler. It houses the world's second largest Research Valley- The Mahindra Research Valley. Schwing Stetter
is building a plant in Chennai

The

Arjun MBT. The Railway Coach building factory of the Indian Railways, the Integral Coach Factory[33]
manufactures railway coaches and other rolling stock.

Port

See also:
Ennore Port

Chennai is also a major port city, that's why it is heavily industrialized in a developed way. There are two ports in Chennai -

Ennore Port. It is located at Ennore
.

Banking and finance

Main articles: Banking in India and Economy of Tamil Nadu
See also: Global Financial Centres Index and Financial centre
World Bank office in Chennai

The first modern bank in Chennai,

ANZ, and Citibank have back office
and Development Center operations in the city. The city serves as a major back-up centre for operations of many banks and financial companies of the world.

The banking sector in Chennai is broadly classified into scheduled banks, non-scheduled banks and Foreign banks. All banks included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks. Scheduled Commercial Banks in Chennai are categorised into five different groups according to their ownership and/or nature of operation:

  • Nationalised Banks
  • Private Sector Banks
  • Foreign Banks
  • Regional Rural Banks
  • Small Finance Banks

The following are the list of Banks based in Chennai.

Bank Name Established Headquarter Branches Revenues Total Assets Ref/Notes
Indian Bank 1907 Chennai 2,836 ₹43,414.34 crore (US$5.4 billion) ₹394,771 crore (US$49 billion) [35]
Indian Overseas Bank 1937 Chennai 3,350 ₹43,120.09 crore (US$5.4 billion) ₹374,436.76 crore (US$47 billion) [36]
Lakshmi Vilas Bank 1926 Chennai 565 ₹2,568.4 crore (US$320 million) ₹56,287.92 crore (US$7.0 billion) [37]
Equitas Small Finance Bank 2007 Chennai 412 ₹1,908.77 crore (US$240 million) ₹23,086.5 crore (US$2.9 billion) [38]
Repco Bank 1969 Chennai 153 ₹984.5 crore (US$120 million) ₹16,515 crore (US$2.1 billion) [39]
TNSC Bank 1905 Chennai 100+ ₹485.7 crore (US$61 million) ₹11,216 crore (US$1.4 billion) [40]

Medical tourism

Chennai leads in the health care sector and is considered the

medical tourists from across the globe.[42] Some of the treatments sought after by the tourists include heart surgery, neurological problems, cancer, plastic surgery and orthopaedic procedures.[43] Chennai attracts about 45% of all health tourists arriving in India from abroad in addition to 30% to 40% of domestic tourists.[44]

Petrochemicals and textiles

There is also an oil refinery in Manali called as Manali Refinery which is controlled by the

apparel manufacture and footwear are under construction in the southern suburbs of the city. Chennai is the cradle for world-renowned Madras shirts
.

Traditional arts

Chennai, hosts the Madras Music Season, during the months of December and January, annually. It is the capital of the Carnatic Music and Bharatanatyam scene in India, and there are many venues in which artists perform throughout the city. There is also a large theatre scene and contemporary visual art scene in the city.

Entertainment industry

The city is home to the

Kollywood
.

The Madras Players is the oldest theatre group in India.

Aerospace industry

See also: Chennai Aero Park

Chennai Aero Park, a proposed Aerospace design, manufacturing and maintenance park is set to become the largest integrated aerospace ecosystem in the world. The project is a pioneering initiative to mark India's entry into the global aerospace industry. The aero park will enable global players to design, manufacture and maintain all types of aircraft for both civilian and defense needs. It is to be established as a Public-Private Partnership (PPP) entity. The city is home to Ashok Leyland Defence Systems, Rane and 56 more aircraft component manufactures. It also has the largest Aerospace Research & Development facility in India which is controlled by Mahindra Aerospace.

See also

References

Wikimedia Commons has media related to Economy of Chennai.
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