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Tamil Nadu Governor RN Ravi on Sunday, January 18, criticised the state government, saying that despite being one of India’s most industrialised states and a major education hub, Tamil Nadu was operating below its potential, with investors increasingly choosing other states.
Speaking at the PanIIT Tech4Bharat Summit 2026 hosted by PanIIT Alumni India at Indian Institute of Technology (IIT) Madras, the Governor said that the state produces over two lakh engineers annually from more than 500 engineering colleges, has the highest Gross Enrolment Ratio (GER) in higher education, and awards more than 6,500 PhDs each year. However, he said this strong human capital was not translating into investment and employment outcomes.
“Incubation of ideas happens here, but businesses start elsewhere. If we identify where we are falling short and address it, Tamil Nadu will achieve its full potential,” he said.
The Governor said Tamil Nadu, which was once the second-largest recipient of private investment after Maharashtra, had now slipped to sixth place, with Maharashtra, Gujarat, Karnataka, Hyderabad, and Telangana overtaking it.
Referring to investments in 2025, he said nearly 25% of Memorandums of Understanding (MoUs) went to Andhra Pradesh and 12% to Odisha, while Tamil Nadu’s share was below 5%.
He added that the Micro, Small and Medium Enterprises (MSME) sector and the startup ecosystem were not expanding, and that existing businesses were unable to scale up their operations within the state.
“A similar lack of enthusiasm is seen among existing businesses in expanding further within the state. As a result, the state is growing at a suboptimal pace,” he said.
Governor Ravi also highlighted a prevailing dichotomy between state-run and non-state-run educational institutions in terms of quality of education and called for urgent intervention to improve standards in state-run universities.
The event was attended by IIT Madras Director V Kamakoti, PanIIT Alumni India Chairman Prabhat Kumar, nominated Rajya Sabha MP Ilaiyaraaja, and others.
