Industry leaders in Tamil Nadu have lauded the Union Budget 2026, hailing it as growth-oriented and supportive of manufacturing, MSMEs, and long-term industrial development. The Confederation of Indian Industry (CII) officials expressed their views during a post-Budget press conference at ITC Grand Chola, Chennai. Deputy Chairman of CII Southern Region, Ravichandran, highlighted the government’s focus on economic expansion through capital investment.
Enhanced public spending on infrastructure, as emphasized in the Budget, is expected to have a positive ripple effect across various sectors. The Budget also outlines a strategic roadmap with a key focus on seven priority sectors, including electronics and advanced manufacturing. Ravichandran specifically mentioned the significance of the Semiconductor 2.0 Mission, covering a broad spectrum from consumer electronics to defense electronics.
Moreover, the announcement of rare earth mineral corridors was highlighted as a crucial move to strengthen supply chains and reduce import dependency, especially beneficial for Tamil Nadu’s growing prominence in electronics, EVs, and advanced materials. The Budget also allocated a substantial Rs 10,000-crore growth fund for MSMEs, while giving attention to urban development, manufacturing, legacy industries, tourism, and data centers.
Former Chairman of CII Southern Region, C.K. Ranganathan, characterized the Budget as a “manufacturing reviver,” with a special focus on technical textiles. He emphasized that the fund allocation and value addition measures would directly benefit textile-centric regions like Tamil Nadu, boosting employment and exports. CII Tamil Nadu State Council Chairman, Unni Krishnan, described the Budget as “foundational and long-term,” foreseeing positive impacts on nearly 200 identified legacy industrial clusters nationwide.
Overall, the Budget is seen as a catalyst for sustained development by the CII leaders. They highlighted Tamil Nadu’s potential gains from the Budget’s emphasis on semiconductors, textiles, MSMEs, tourism, and infrastructure, reinforcing the state’s pivotal role in India’s industrial growth.
