Chennai, Aug 5:
The Tamil Nadu Budget 2026–27 outlines a strong push toward industrial expansion, innovation and MSME growth, with a focus on balanced regional development and future-ready sectors.
The government announced plans to establish new SIPCOT industrial parks in backward districts, backed by district-specific strategies and sectoral strengths, with an investment of around ₹3,200 crore over the next five years.
In a major step for the space sector, Thoothukudi and Tirunelveli will be developed as a Space Industrial Investment Zone, supported by a Space Vehicle Common Technical Facility in collaboration with IN-SPACe.
To strengthen logistics and industrial ecosystems, the State will work toward setting up more Multi Modal Logistics Parks, dry ports and petrochemical hubs, while also exploring new port development. A new Tamil Nadu Industrial Policy is also on the anvil to promote innovation, exports and sustainable industrial growth.
A key highlight is the proposed development of ‘Arivagam’, India’s first AI and Innovation City, which will house an AI university, semiconductor testing lab, innovation incubators and residential facilities. An initial allocation has been made for feasibility studies, signalling the State’s intent to lead in advanced technologies.
The Budget also places strong emphasis on MSMEs and the textile sector. Key initiatives include the Tamil Nadu Women Entrepreneurs Empowerment Scheme with an outlay of ₹225 crore and a ₹352 crore Capital Subsidy Scheme. A Green Steel Production Initiative with ₹300 crore over five years aims to promote sustainable manufacturing.
Additionally, the government plans to establish a Tamil Nadu Institute of Design, launch a Technical Textiles Transformation Scheme and support sector-specific institutions such as the Tiruppur Textiles Technology Centre.
The Tamil Nadu Palmyra Development Corporation has also been allocated ₹16 crore to boost traditional industries.