India’s first International Furniture Park in Thoothukudi, launched with high expectations three years ago, remains largely unoccupied, raising questions about the State government's execution and promotion strategies for one of its flagship industrial projects.

Spread across 1,150 acres in the Meelavittan area under the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), the park was intended to attract ₹4,500 crore in investment and provide jobs to over 3.5 lakh people within 8 to 10 years. However, only three private firms have begun operations, together occupying just 126 acres. The Tamil Nadu Industrial Development Corporation (TIDCO) has acquired 10 acres to build a trade facilitation and commercial centre.

Among the three companies, Crest Lashing and Packaging Private Limited, a Chennai-based firm that manufactures wooden boxed furniture, interior panels, and wooden pallets, is the only one that has begun production. The other two units are still under construction.

The slow pace of development and low investor interest has sparked concern among stakeholders. When the park was announced, the first phase was projected to be fully operational in five years, drawing investment of ₹1,500 crore to ₹1,800 crore and creating around 1.5 lakh jobs. These ambitions now appear significantly delayed.

M.V. Venaktesan, managing director of Crest Lashing, pointed to basic infrastructure issues as a major hurdle. “We were the first to begin production, but the electricity and water connection process was tedious. There’s still no drainage system provided by SIPCOT,” he said. According to him, while the government has invested in roads and internal infrastructure, the lack of aggressive promotion has limited investor interest.

Local businessman Prasad, who imports furniture in Thoothukudi, said the park had potential but faced structural market challenges. “We import more than we export. Due to higher costs and limited craftsmanship, it’s not feasible to produce at scale here,” he noted. He added that initial enthusiasm has faded, and local firms are struggling to justify setting up shop in the park.

P. Kathirvel, national organising secretary of the Indian National Trade Union Congress (INTUC), echoed these concerns. He criticised the lack of progress since the park’s inauguration, saying that only small firms employing 100 to 150 people are currently present. “We were promised mass employment, but this is far from what was envisioned,” he said.

Kathirvel also stressed the competitive disadvantage Indian manufacturers face. “Furniture is imported from China, Indonesia, and other countries at lower prices than what’s produced in Tamil Nadu. Until that gap is addressed, investors will hesitate,” he added.

Another key issue remains the absence of essential facilities, including dedicated power and water infrastructure, proper waste management, and logistics services. Without these, experts argue, the park cannot deliver on its original promise of becoming a manufacturing hub for both domestic and export markets.

Responding to these criticisms, an official from SIPCOT Thoothukudi confirmed that infrastructure upgrades are underway. He said 12 acres have been allocated to the Tamil Nadu Generation and Distribution Corporation to set up a substation to address power supply concerns. A new water facility is also under construction and is expected to be operational within a few months.

The SIPCOT official added that the State government is taking active measures to promote the park, including hosting investor meets and developing a marketing strategy to attract major players in the furniture industry. However, he acknowledged that more targeted outreach is needed to realise the park’s full potential.

The situation in Thoothukudi reflects a broader issue faced by many special economic zones and industrial corridors across India. Despite initial government announcements and land allocation, many of these parks struggle due to inadequate support services, bureaucratic red tape, and insufficient follow-through on policy promises.

Experts believe that for the furniture park to succeed, the government must undertake a comprehensive strategy that includes:
• Ensuring fast-track utility connections
• Offering incentives for early movers
• Developing training centres for local craftsmen
• Engaging in international marketing to attract global brands
• Addressing import competition through favourable policy interventions

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