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Understanding Karunanidhi’s role in Tamil Nadu’s economic transformation

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If you ask a historian, who industrialised Tamil Nadu, they will likely point to R Venkataraman (RV). As Industries Minister (1957–1967), he undeniably brought the first wave of heavy industry — the PSUs, the boilers, and the coaches.

But if you ask an economist who built the system that makes Tamil Nadu that is approaching the $400 billion GSDP as of December 2025, the answer shifts.

In this article, I argue that while R. Venkataraman broke ground and did bhoomi pooja, M Karunanidhi (Kalaignar) was the Architect who built the skyscraper.

R Venkataraman is often lauded for his role in bringing Central PSUs like the Bharat Heavy Electricals Limited (BHEL), Neyveli Lignite Corporation, and the Intergral Coach Factory (ICF) to Tamil Nadu. While RV has contributed in these projects as his office overlapped during the early days of these projects, the commencement of these  projects are often mis-atributed to him. ICF started production in1955 and NLC was established in1956. Both of these major institutions were established much before RV became industries minister in 1957.  

M Karunanidhi’s contribution was different. He didn’t just lobby for factories; he created institutions that manufacture factories. He built the state’s industrial “Operating System.”

SIPCOT (1971): Established during Karunanidhi’s first term as Chief Minister, the State Industries Promotion Corporation of Tamil Nadu........

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