With an ambitious growth target of 14.5 per cent (nominal terms) for FY26, Tamil Nadu has increased its allocation to the Industries and MSMEs to ₹5,833 crore as against ₹4,481 crore in 2024-25.
The government will launch and implement the ‘Tamil Nadu Semiconductor Mission-2030’ over the next five years with an estimated allocation of Rs.500 crore. To leverage the state’s talent ecosystem on semiconductor design, a ‘Semiconductor Fabless Lab’ will also be established in Chennai at an estimated cost of Rs.100 crore in collaboration with industry and academia.
With a view to decongest Chennai, the state also intends to develop a new ‘global city’ near Chennai spread over an extent of 2,000 acres and state’s infrastructure body TIDCO will commence work on this soon. This will feature IT parks, trade zones, R&D centres, high-tech companies, banking and insurance firms, educational and healthcare facilities provided by both public and private sector institutions. It will include multi-storeyed residential buildings catering to upper-income, middle-class, and lower-income groups, the FM said.
The Minister announced ten new industrial training institutes (ITIs) with ₹152 crore investment, training 1,308 students annually. Further, seven ITIs for construction workers’ children, training 1,370 students per year was announced.
The non-leather footwear hubs will create 1 lakh jobs, 80 per cent for women. Footwear parks are being planned in Madurai and Cuddalore, generating 20,000 jobs, he added.
- Also read: Tamil Nadu Budget projects FY25 real GDP growth at 9%
Further, Hosur is to become a new hub for Global Capability Centres, R&D, and IT, similar to OMR in Chennai. Bioscience Park near Chennai with high-end infrastructure for biotech and life sciences manufacturing.
Interestingly, the budget also addressed needs of the new economy. A proposal has been introduced to extend a ₹20,000 subsidy each for 2,000 gig workers to buy electric scooters for work.
The Minister also announced that the Tamil Nadu Maritime Transport Manufacturing Policy 2025 will drive investment in ship design, fabrication, and engine production, creating 30,000 jobs in Cuddalore and Thoothukudi.
In Thoothukudi, which has already drawn substantial investments in the green hydrogen and automobile sectors, a Man-Made Fibers (MMF) and Technical Textiles Industrial Park will be established.
New industrial parks will be established in Cuddalore district over an area of 500 acres and in Pudukottai district over an area of 200 acres.
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