Tamil Nadu powers ahead as India’s tech talent hub, producing 20% of national workforce

Tamil Nadu has many strengths with the core being talent because of inclusion, equitable access and education for all that was legislated in the past. That’s why the state today produces about 20 per cent of India’s technology talent across all levels of education from ITI to polytechnic to engineering, even though the state has less than 6 per cent of the country’s population, said Tamil Nadu’s IT minister Palanivel Thiaga Rajan.

“We backed that up because of economic policies. For example, Government of India’s report data shows that 42 per cent of of all women working in the formal manufacturing sector are working in Tamil Nadu,” he said at the 22nd Edition of CII Connect 2024 held in Chennai on Tuesday. “We have to have both – inclusion and an economic framework that attracts investment and brings the required capital to the State,” he added.

The present government has focused on 7-8 areas, including skilling, finishing, or bridging the talent of the enormous graduating classes and young people into the relevant economic activities of the day. This is being done through initiatives like Naan Mudhalvan, Skill Development Corporation, and ICT Academy. Due to the huge talent, large employers like Cognizant and TCS have a significant proportion of the workforce in Tamil Nadu, he added.

No other part of this country has a predominantly local workforce. In Tamil Nadu, it is almost 80 per cent, bringing stability and reducing attrition. “We focus on enhancing that,” he said.

“We are on the first stages of providing connectivity project by inviting last mile partners for about 100 blocks and nearly 800 villages. When it is done, we will have all the 12,600 villages connected with the 1 Gig pipe providing equitable Internet access for education and work from home for every part of the state,” he said.

Tamil Nadu’s strength is its thriving IT hubs, such as Chennai, Coimbatore, Madurai, Trichy, and Salem. This government is committed to fostering Ease of Doing business for companies while actively positioning the state as a global IT powerhouse, said Dr Palanivel Thiaga Rajan, Hon’ble Minister for IT & Digital Services, Government of Tamil Nadu

Tamil Nadu has allowed startups to offer technology solutions without going through the traditional tender process, fostering faster innovation. The key priorities for the next four years include skilling graduating talent and integrating them into the workforce through the ICT Academy, establishing policies for R&D, deep tech, and AI guidelines, building a skilled and stable local workforce, reducing attrition, and providing support programs for startups to fuel innovation and growth, he said.

With its robust education system, rich talent pool, thriving technology industry, and supportive government policies, Tamil Nadu is uniquely positioned to become India’s Artificial Intelligence hub, says Rajesh Varrier, EVP, Global Head of Operations, Cognizant, and Chairman and Managing Director, Cognizant India.

He said the Tamil Nadu Artificial Intelligence Mission, which aims to improve the efficiency and accessibility of public services, and the innovative Digital Agricultural mission using drones and AI for soil health are some of the advancements that highlight the state’s growing AI ecosystem.

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