Business leaders and industry stakeholders who analyzed the 2025-26 state budget, presented by the Tamil Nadu government on March 14, at a special conclave organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the South India Chamber of Commerce and Industry (SICCI), in collaboration with The New Indian Express, called some of the state's proposals pathbreaking. They emphasised that many of these recommendations align with the state's long-term vision for industrial development and noted that these measures would significantly contribute to achieving the state's economic goals, particularly in creating a large employment pool.
Delivering the keynote address at the Budget review session, eminent economist K. Prabhakaran said the State Budget has once again demonstrated that Tamil Nadu is one of the most investor-friendly states in India.
"Several new industries are now coming to Tamil Nadu and many of them are actually returning to the state. This is a clear indication that it is an industry friendly state by many parameters, and the proposals in 2025 Budget has demonstrated its commitment to take it forward with specific projects that will see the growth continued, especially employment creation and social welfare," he said.
The Tamil Nadu government has presented its budget proposals for the financial year 2025-26, stressing significant support for business and industrial development. The key initiatives proposed include an allocation of Rs 2,420 crore has been designated for the Investment Promotion Incentive for Industries. This fund aims to attract and retain investments, fostering industrial growth and job creation within the state.
The government plans to develop a 2,000-acre "Global City" near Chennai, designed to boost sectors such as IT, fintech, and research. This initiative is expected to position Tamil Nadu as a hub for technological innovation and economic activity.
A Rs 25 crore fund has been established to promote research in product design, development, and innovation. This fund encourages collaboration between industries and academic institutions, aiming to drive technological advancements and industrial competitiveness.
The Tamil Nadu Maritime Transport Manufacturing Policy 2025 has been introduced to stimulate investment and innovation in ship and boat design, hull fabrication, and engine production. This policy positions Tamil Nadu as a key player in the maritime manufacturing sector.
Recognising the growing gig economy, the government has announced a Rs 20,000 subsidy for 2,000 registered gig workers to purchase e-scooters. An insurance scheme covering accidental death and disability for nearly 150,000 gig workers has also been introduced, aiming to improve the welfare and productivity of this workforce.
The budget allocates funds for the development of industrial corridors, such as the Chennai-Bangalore Industrial Corridor, aiming to enhance connectivity and trade between southern India and East Asia. This project is expected to boost commerce by facilitating the efficient movement of goods to major ports.
These measures reflect the state's commitment to fostering a robust industrial ecosystem, attracting investments, and promoting sustainable economic growth.
Setting the context for the budget review discussions, CA Amrith Lal, Convenor of the FICCI Tamil Nadu Finance & Taxation Panel and Senior Partner at KRT & Co, Chartered Accountants, highlighted that Tamil Nadu, being one of the top contributors to India's GDP, has set a goal to become a $1 trillion economy. The State Budget for 2025-26, which outlines industrial growth with sector-wise allocations, is clearly aimed at achieving this target.
The first session of the panel discussion, chaired by Amrith Lal, focused on industrial and infrastructure development as proposed in the Budget. Panelists in this session included Sanjay Chugh, City Head & Director at ANAROCK Property Consultants; Neeraj Sablok, Founder and CEO of Noizzybox (Electronics); R. Sivaramakrishnan, Co-Founder of Sincere Syndication; and CA Selva Kumar, Managing Partner at SSRR & Associates.
The second session delved into proposals supporting technology-linked growth projects, particularly those enabling the development of artificial intelligence, semiconductor, and electronics manufacturing in the state. Chaired by M. Saravana Prabhu, Director – Indirect Taxes at Shreyas Global, this session discussed various aspects of the developmental agenda outlined in the Budget. Panelists included Dr. M. Sathya Kumar, Advocate at TYCOON Legal; K. Prabhakaran, Economist; CA Raghavender, Partner at B & P Corporate Advisors LLP; and Rajendra Awasthi, Founder and CEO of Ezee.ai.
For details of the discussion please watch the video below: