Tamil Nadu falling short of potential despite talent edge, says Guv

Chennai, Jan 18 (PTI) Tamil Nadu, despite being a highly industrialised state and a technology and innovation hub producing a large number of engineers and research scholars every year, is not performing optimally in line with its potential and can do much better, Governor R N Ravi said on Sunday.

Speaking at an event here, Ravi said the state produces about two lakh engineers annually from more than 500 engineering colleges, while over 6,500 research scholars pass out every year.

"Tamil Nadu is a highly industrialised state and already a technology and innovation hub. The question is whether it is performing optimally as per its potential. If one has the capacity to run at 12 km per hour but runs at 5-6 km per hour, one is still running but losing out on the remaining capacity. Can we do better? There is no doubt that we can," he said.

Ravi was speaking at the inauguration of the PanIIT Tech4Bharat Summit 2026, organised by PanIIT Alumni India—an umbrella body of alumni from all 23 Indian Institutes of Technology—in association with IIT Madras.

He said Tamil Nadu has the highest Gross Enrolment Ratio (GER) in the country and produces the largest number of engineers and PhDs.

"Our annual production of PhDs is over 6,500. I do not think any other state produces that many PhDs. With such strong fundamentals, there is no reason why Tamil Nadu cannot be a leading state in technology and innovation," he said.

Referring to the industry and the MSME sector, Ravi said investments should naturally flow into the state and that the MSME sector and the startup ecosystem should be vibrant.

"Investors should be making a beeline for the state. Our MSME sector should be full of energy, and the startup ecosystem should be thriving. But there is a mismatch when one looks at the ground reality," he said.

He said addressing these gaps would enable Tamil Nadu to emerge as the top state in the country.

While noting that Tamil Nadu was the second-largest recipient of private investment after Maharashtra earlier, Ravi said the state’s ranking had slipped in recent years.

"By 2021, Tamil Nadu was ranked fourth in attracting private investments, after Maharashtra, Gujarat and Karnataka. Today, it stands sixth, as Hyderabad and Telangana are offering stiff competition," he said.

He added that data on promised investments and memoranda of understanding signed in 2025 indicated that some states were emerging as new competitors.

Despite producing the highest number of engineers and PhDs, Ravi said investors "were moving away, and the MSME sector was not growing as expected." "Incubation happens here, but businesses start elsewhere. If we identify where we are falling short and address it, there is no reason why Tamil Nadu cannot achieve its full potential," he said. PTI VIJ SSK