Tamil Nadu has set an ambitious growth target of 14.5 per cent (in nominal terms) for the financial year 2026 and has raised its budget allocation for the Industries and Micro, Small, and Medium Enterprises (MSMEs) sector to ₹5,833 crore, up from ₹4,481 crore in 2024-25.
The government plans to unveil and execute the ‘Tamil Nadu Semiconductor Mission-2030’ over the next five years, with a projected investment of ₹500 crore. To capitalize on the state’s talent in semiconductor design, a ‘Semiconductor Fabless Lab’ will also be established in Chennai at a cost of ₹100 crore, in collaboration with industry and academic institutions.
To alleviate congestion in Chennai, the state government aims to develop a new ‘global city’ on a 2,000-acre site near Chennai. The Tamil Nadu Industrial Development Corporation (TIDCO) will soon initiate this project, which will include IT parks, trade zones, research and development centers, high-tech companies, banking and insurance institutions, as well as educational and healthcare facilities provided by both public and private sectors. The development will feature multi-story residential buildings accommodating upper-income, middle-class, and lower-income groups, according to the Finance Minister.
The Minister also announced the establishment of ten new industrial training institutes (ITIs) with an investment of ₹152 crore, aimed at training 1,308 students each year. Additionally, seven ITIs specifically for the children of construction workers will be set up, providing training for 1,370 students annually.
The initiative to establish non-leather footwear hubs is expected to generate 100,000 jobs, with 80 percent of these opportunities targeted at women. Footwear parks are being planned in Madurai and Cuddalore, which are projected to create 20,000 jobs.
Furthermore, Hosur is set to emerge as a new center for Global Capability Centres, research and development, and information technology, similar to the OMR area in Chennai. A Bioscience Park is also planned near Chennai, featuring advanced infrastructure for biotechnology and life sciences manufacturing.
Notably, the budget has acknowledged the needs of the emerging economy by proposing a ₹20,000 subsidy for 2,000 gig workers to purchase electric scooters for work purposes.
The Minister also revealed that the Tamil Nadu Maritime Transport Manufacturing Policy 2025 will promote investments in ship design, fabrication, and engine production, with the potential to create 30,000 jobs in Cuddalore and Thoothukudi.
In Thoothukudi, which has already attracted significant investments in the green hydrogen and automobile sectors, a Man-Made Fibers (MMF) and Technical Textiles Industrial Park will be established.
Additionally, new industrial parks are set to be created in Cuddalore district, spanning 500 acres, and in Pudukottai district, encompassing 200 acres.
