Business leaders and industry stakeholders who analysed the 2025-26 state budget, presented by the Tamil Nadu government on March 14, at a special conclave organised by the Federation of Indian Chambers of Commerce and Industries (FICCI) South India Chamber of Commerce and Industry (SICCI) in collaboration with The New Indian Express group, termed some of the state’s proposals as 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 Prabhakar said that the state budget has once again proved 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 a specific projects that will see the growth continued, especially employment creation and social welfare,” he said.
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.
Sivaramakrishnan, co-founder of Sincere Syndication, highlighted Tamil Nadu’s rich temple heritage and their untapped economic powerhouse. He said,“With thousands of ancient temples spread across villages, the state has the potential to become a global tourism hub.
By investing in infrastructure around historic sites like Tiruvannamalai, Srirangam, and Kanchipuram, Tamil Nadu can boost tourism revenue exponentially. Unlike manufacturing, tourism requires no new creation — our heritage is already there; we just need to showcase it to the world. Tourism is one of the highest-margin industries, and leveraging it effectively can play a key role in Tamil Nadu’s journey towards a trillion-dollar economy.”
Another sector to put limelight on according to the panellists was real estate. According to Sanjay Chaugh, city head & director at ANAROCK Property Consultants, “This year’s budget appears well-balanced, with a strong focus on infrastructure development.
This will drive job creation, especially with projects like TIDEL Parks expanding to tier-two cities beyond Chennai. Such developments will not only boost employment but also enhance economic opportunities across the state.”
The government’s focus on infrastructure development, incentives for MSMEs, and ease of doing business policies further create a favorable environment for startups. When Neeraj Sablok, CEO of Noizzy Box highlighted the MSMEs, CA Selva Kumar, managing partner at SSRR & Associates, focussed on AI, “Tamil Nadu isn’t just catching up with AI — we’re already inside the rocket. As the first Indian state to introduce a comprehensive AI policy, we are leading the way. AI isn’t about replacing jobs but enhancing efficiency.”
The second session delved more 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. Rajendra Awasthi, founder and CEO of Ezee.ai said, “The target of a trillion-dollar economy will be achieved by the state if the policies are implemented.”
Adding to that, CA Raghavender, partner at B & P Corporate Advisors LLP, shared that the target of a trillion-dollar economy by 2030 requires a growth rate of 13-14%, which is achievable by capitalising on service sector opportunities.”
Dr M Sathya Kumar, advocate at TYCOON Legal, concluded, “The state’s careful management of its budget, amounting to over Rs 3 lakh crores, demonstrates a model of fiscal discipline. This ensures that despite the challenges posed by debt, Tamil Nadu continues to grow economically without compromising its social welfare commitments.”