CHENNAI: The Tamil Nadu government on Wednesday unveiled a Rs 4,414 crore industrial development package in its revised Budget Estimates, outlining an ambitious roadmap centred on an AI-powered investment ecosystem, a dedicated space industry zone and new industrial infrastructure to boost manufacturing and exports.
Presenting the budget, Finance Minister Marie Wilson said the Industries, Investment Promotion and Commerce Department had been allocated Rs 4,414 crore. The government has set a target of raising the state's Gross State Domestic Product (GSDP) to USD 1.5 trillion by 2036.
Wilson said the government had signed seven memoranda of understanding (MoUs) worth Rs 35,062 crore since assuming office. These investments are expected to generate 14,790 direct and indirect jobs.
A key announcement was the introduction of a new Tamil Nadu Industrial Policy, aimed at strengthening the state's competitiveness through innovation-led and export-oriented growth.
The government will also develop a Tamil Nadu Industrial Capability Directory, a digital database of the state's manufacturing and supply-chain capacities to help investors identify business opportunities.
To streamline investment approvals, the government will launch Guidance 3.0, an AI-powered investment facilitation platform, along with an upgraded Tamil Nadu Single Window Portal 3.0, which will integrate statutory approvals, clearances and no-objection certificates on a single platform.
A Non-Resident Tamil Investment Facilitation Desk will also be established within Guidance to attract investments from the Tamil diaspora.
To promote balanced regional industrial growth, the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) will develop new industrial parks in less-developed districts at an estimated cost of Rs 3,200 crore over the next five years, with projects tailored to each district's industrial strengths.
The government also announced the creation of a Space Industrial Investment Zone covering Thoothukudi and Tirunelveli districts, centred on the Kulasekarapattinam spaceport. In collaboration with IN-SPACe, the state plans to establish a Space Vehicle Common Technical Facility to support private space companies, startups and research institutions.
In another major initiative, the budget earmarked Rs 5 crore for a feasibility study for "Arivagam," proposed as India's first dedicated AI and deep-tech city. The project is expected to house an AI university, an international skill development centre, a semiconductor hardware testing laboratory and multiple innovation incubators.
The government also announced plans to explore new deep-sea ports, expand multimodal logistics parks and dry ports, and develop petrochemical and ancillary industrial clusters as part of its broader industrial growth strategy.