An improved investment climate and economic recovery after the COVID-19 pandemic have boosted financing for private sector projects in Tamil Nadu by 8% over the past year. The State’s share in the total cost of private corporate sector projects sanctioned by banks and financial institutions has significantly improved in 2021-22. Tamil Nadu’s share in the overall project cost of ₹1,43,314 crore sanctioned by banks and financial institutions increased to 8.7% in 2021-22 from just 0.7% of the overall project cost of ₹75,558 crore in 2020-21. The State’s share from 2012-13 to 2019-20 had stood at 6.4%.
According to an article, ‘Private Corporate Investment: Growth in 2021-22 and Outlook for 2022-23’, published recently in the Reserve Bank of India bulletin, Rajasthan accounted for the highest share, in total cost of projects sanctioned by banks and financial institutions at 13.3%, in 2021-22. Even though its share declined from 17.1% in 2020-21, it retained the top place for two consecutive years.
