Economy

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    Salem is a major textile centre in Tamil Nadu, with more than 125 spinning mills, weaving units and garment units. Until the 1960s, it had fewer spinning mills. Private handloom weaving began to increase in the region after the 1960s and during the 1980s, the textile industry expanded with major spinning mills and dyeing units established supporting the industry.

    The area also houses a number of sago factories for the production starch. In Salem district, 34,000 hectares (130 sq mi) of land are devoted to cassava and 650 industrial units are engaged in tapioca processing. In 1981, the Salem Starch and Sago Manufacturers Service Industrial Co-operative Society (SAGOSERVE) was established to promote the sago industry and nearly 80 percent of the national demand for sago and starch is met by SAGOSERVE.[42] In and around Salem cassava yields are 25–30 tons per hectare, one of the highest in the world; the national average is 19 tons per hectare, and the world average is 10 tons.

    The Salem Steel Plant, a unit of the Steel Authority of India, produces cold-rolled stainless steel and a hot-rolled stainless-carbon steel alloy. The plant is being expanded and modernized, with plans for steel-melting and continuous-casting facilities. The Southern Iron and Steel Company (part of JSW Steel) have their first integrated steel plant in Salem for the production of TMT corrosion-resistant bars and alloy steels. The Salem region is rich in mineral ores, with some of the largest magnesite and bauxite deposits in India. Public and private magnesite factories include Burn Standard and Company, Dalmia Magnesites and Tata Refractories.

    Salem Mango belt contributes the economy in large scale by exporting mangoes to foreign countries and supplying mangoes all over India. The Leigh Bazaar is the region's largest market for agricultural products. The Tamil Nadu government and the Electronics Corporation of Tamil Nadu are planning a 160-acre (65 ha) IT park in the city.[49][50] The Steel Authority of India is planning a 250-acre (100 ha) steel special economic zone in its Salem plant,[51] and an electrical and electronics industrial estate is in the Suramangalam area of the city.

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