1. An in-depth study of the economy of Erode district reveals that agriculture is playing an important role followed by industries. Since the existing industries are mostly of Agro-based industries, the down trend in one sector affects the performance of the other. Still the district has abundance opportunities for development of both these sectors.
  2. 1,94,343 hectares of land, about 24% of the total land in Erode district is coming under current fallow and other fallow during the year 1999 - 2000. There is a high scope for improving the activities in agriculture and horticulture sectors by developing these waste lands.
  3. Textile industry is the oldest and one of the biggest industries in the district. However, at present this industry is facing a crisis.
  4. Power loom plays a major role among textiles in this district. The major draw back is that the industry has not been modernised adequately. The machinery installed is obsolete, which needs replacement immediately.
  5. Government has introduced “Technology Upgradation Fund Scheme” for the modernisation of the textile sector. The major obstacle for the take off the scheme among SSI sector and powerloom units are the conditions imposed by the banks. There is a dire need to review the conditions attached with the scheme.
  6. Edible oil mills are concentrated in this district. The liberalisation of imports under WTO obligations created problems for the existence of these industries. Timely action is required to control the import of edible oil and to save these industries from the crisis.
  7. Erode district is one among the highest milk producing districts in the State. There is a need for diversifying the dairy products to consume the whole production.
  8. There is ample scope for development of Food Processing Industries in the district. Availability of technology and training is a problem for the aspiring entrepreneurs. Hence there is need for Food Technology & Training centre under the guidance of CFTRI, Mysore, in this district.
  9. Erode district is the highest producer of turmeric. However there is not much industries developed in this district except Masala Powder units. There is a good scope for starting turmeric based industries.
  10. There is good scope for improving the performance of sectors like Horticulture, Sericulture and Pisciculture and units based on these sectors have a good future in this district.
  11. There are very good opportunities in plastic based products and some Electrical & Electronic based products in this district.
  12. There is a good scope for further development in mechanical based industries in this district.
  13. The opportunities in the Software and IT enabled service sectors offer a good scope for development in this district.
  14. Tourism and recreational activities are important sectors which can be developed very well. It will provide employment opportunities and income to the people in this district.
  15. SIPCOT Industrial Growth centre at Perundurai provides all the necessary infrastructure facilities. There is a good scope for setting up industries like Textile Processing, Leather, Chemical, Engineering, Electrical & Electronics Industries.
  16. There is a good scope for further development of Leather based industries in the district by using the facilities of CETPs at SIPCOT Industrial Growth centre. Export oriented Leather Products can be started in this centre.