Tamil Nadu Industry Leaders Hail Union Budget 2026 as Growth Catalyst

Senior office-bearers of the Confederation of Indian Industry (CII) shared their assessment while addressing the media at a post-Budget press conference held at ITC Grand Chola, Chennai, on Sunday.

Speaking after the Budget presentation, Deputy Chairman of CII Southern Region Ravichandran said the government had placed a clear emphasis on economic expansion driven by capital investment.

He noted that enhanced public spending on infrastructure would have a strong multiplier effect across sectors.

Highlighting the industrial roadmap outlined in the Budget, he said there was a strategic focus on seven priority sectors, including electronics and advanced manufacturing. "The Semiconductor 2.0 Mission is a major highlight, covering a wide spectrum from consumer electronics to defence electronics," Ravichandran said.

He also pointed to the announcement of rare earth mineral corridors, calling it a crucial step towards strengthening supply chains and reducing import dependence -- an area of particular relevance for Tamil Nadu, which is emerging as a hub for electronics, EVs and advanced materials.

He added that MSMEs had received a significant boost through a Rs 10,000-crore growth fund, while urban development, manufacturing, legacy industries, tourism and data centres were also given focused attention.

"Overall, this Budget clearly paves the way for sustained development," he said.

Former Chairman of CII Southern Region C.K. Ranganathan described the Budget as a "manufacturing reviver," with special emphasis on technical textiles.

He said dedicated fund allocation and value addition measures would directly benefit textile-dominated regions such as Tamil Nadu, strengthening employment and exports.

Chairman of CII Tamil Nadu State Council Unni Krishnan termed the Budget "foundational and long-term in nature." He pointed out that nearly 200 legacy industrial clusters identified across the country would gain from targeted interventions over time.

"The real benefits will be visible progressively, but the direction is clearly positive for the economy," he said.

CII leaders said Tamil Nadu stands to gain substantially from the Budget's focus on semiconductors, textiles, MSMEs, tourism and infrastructure, reinforcing the state's role as a key engine of India's industrial growth.

- IANS