The Government aims to drive Tamil Nadu’s Gross State Domestic Product (GSDP) to a 1.5 Trillion US dollar economy by 2036, and is committed to building a friendly ecosystem that promotes industrial growth, attracts investment, and generates significant employment opportunities for the youth of the State, he said while presenting the TVK government’s maiden budget for 2026-2027.
The government will strive to set up more Multi Modal Logistics Parks (MMLPs) and Dry Ports at strategic locations, and to establish petrochemical and ancillary industries. This Government will also explore the possibility of setting up new ports in Tamil Nadu, Marie Wilson said.
The government will release a new Tamil Nadu Industrial Policy, which will foster innovation and technology-driven growth, support emerging industry sectors, and drive sustainable development and export promotion, he said.
Tamil Nadu Industrial Capability Directory, a comprehensive digital platform listing the State’s manufacturing and supply capabilities, enabling investors to understand the depth of the local ecosystem, Minister said.
The Government will introduce an Artificial Intelligence (AI)-powered investment service system called ‘Guidance 3.0’, making all requisite information, clearances and services available seamlessly on a single platform for companies seeking to invest in Tamil Nadu, he said.
As a key component of this initiative, the ‘Tamil Nadu Single Window Portal 3.0’ will be implemented in an upgraded form, enabling all statutory approvals, clearances and no-objection certificates required for establishing industries and investment projects to be obtained through a unified interface, the Minister said.
This will make setting up of industries and investing in Tamil Nadu remarkably seamless, paving the way to attract new investment and accelerate industrial growth, he noted.
A ‘Non-Resident Tamil Investment Facilitation Desk’ will be established within Guidance, to facilitate and promote investment by the global Tamil diaspora in the State, Wilson said.
SIPCOT will establish new industrial parks in industrially backward districts, based on district-specific industrial development plans and each district’s sectoral strengths, he said.
The Parks will be developed with state-of-the-art infrastructure suited to investors’ needs, at an estimated cost of approximately Rs.3,200 crore over the next five years, Wilson said.
Thoothukudi and Tirunelveli, in southern Tamil Nadu, will be declared as a ‘Space Industrial Investment Zone’, anchored by the strategic significance of the spaceport at Kulasekarapattinam, he said.
This is expected to bring about a major leap in the industrial growth of the southern region. To provide unparalleled infrastructure and technological support to private enterprises, startups and research organisations within this zone, the State Government, in collaboration with IN-SPACe, is establishing an advanced ‘Space Vehicle Common Technical Facility’, Wilson said.
India’s first dedicated AI and Innovation city, named ‘Arivagam’, will be established for Artificial Intelligence and deep tech development, with facilities including an AI university, an international skill development centre, a semiconductor hardware testing lab, multi-domain innovation incubators and modern residential infrastructure, he said.
It will serve as a dedicated ecosystem bringing together AI companies, deep-tech startups, quantum technology ventures, enterprise capability centres, research institutions and Government AI initiatives, equipped with advanced compute infrastructure, specialised facilities, a skilled workforce, and a collaborative innovation environment. Feasibility study will be undertaken at an estimated cost of Rs.5 crore for this project, Wilson said.
In the Revised Budget Estimates, Rs.4,414 crore was allocated for the Industries, Investment Promotion and Commerce Department.
The Minister noted that Tamil Nadu ranks third at the national level, with 43.47 lakh registered Micro, Small and Medium Enterprises (MSMEs).
Capital subsidies and interest subsidies are provided to new entrepreneurs
under various schemes. In this financial year, an amount of Rs.225 crore is allocated under the Tamil Nadu Women Entrepreneurs Empowerment Scheme, and Rs.352 crore under the Capital Subsidy Scheme, he said.
To promote environmentally sustainable steel production and mitigate the environmental
impact of steel rolling mills, the ‘Green Steel Production Initiative’ will be implemented at
an estimated cost of Rs.300 crore over the next five years. In the Revised Budget Estimates, Rs.60 crore is allocated for this scheme, Wilson said.
In the Revised Budget Estimates, Rs.2,142 crore is being allocated for the Micro, Small
and Medium Enterprises Department.