Industrial growth has been adversely affected by the temporary closure of industrial units and commercial establishments following the outbreak of COVID-19, Deputy Chief Minister and Finance Minister O. Panneerselvam informed the Assembly on Tuesday.
Speaking during the debate on the demands for grants to the Finance Department, Mr. Panneerselvam said major industrial hubs like Chennai, Coimbatore, Erode, Tiruppur, Salem, Madurai and Thoothukudi, among others, had been affected.
Exports in the manufacturing sector, including those of textile and knitwear products and machinery, had been hit, he said, pointing out that both exports and imports of goods had been affected due to the suspension of cargo movement to and from foreign countries. “Vehicular transport too has largely reduced,” Mr. Panneerselvam said.
“Due to these reasons, there has been a slump in the economy. No one could predict the economic loss resulting from the spread of a pandemic like COVID-19,” he said.
“The State government has a duty to implement people’s welfare schemes and make capital expenditure, despite the unusual circumstances. Funds for taking precautionary measures against the pandemic would be allocated from the State Disaster Response Fund,” Mr. Panneerselvam said.
The State government would take steps to overcome the dip in industrial growth and ensure growth by implementing all the schemes of various departments. IGST dues of about ₹7,517 crore were yet to be settled by the Centre, he said. Though the 15th Finance Commission had recommended a marginal increase in the funds allocated to Tamil Nadu, he said, “There are several problems facing the State, which require solutions. The Tamil Nadu government would present a revised note to the 15th Finance Commission.”
Around 500 tourists and students from Tamil Nadu, who were stranded abroad due to the COVID-19 outbreak, had been brought back to the State, Mr. Panneerselvam said.
