Budget focuses on growth, manufacturing and opportunities for TN: CII leaders
Chennai, Feb 1
Industry leaders in Tamil Nadu have welcomed the Union Budget 2026, describing it as growth-oriented, forward-looking and supportive of manufacturing, MSMEs and long-term industrial development.
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
Reader Comments
The Rs 10,000-crore MSME fund is a much-needed lifeline. As a small business owner in Coimbatore, access to capital is our biggest hurdle. If implemented well, this can truly boost local manufacturing and employment. Hoping the benefits reach the ground level.
While the focus on manufacturing is good, I hope there is equal emphasis on skilling our youth. We need trained engineers and technicians for these advanced sectors like semiconductors. The budget should have been clearer on vocational training partnerships with industries.
As someone working in the tech sector in Chennai, the Semiconductor 2.0 Mission is very exciting. It could put India on the global map for electronics design and manufacturing. Attracting big investments will be key. Let's see the execution now.
The focus on technical textiles is a masterstroke for Tamil Nadu. Our state has a rich textile heritage, and this push towards value-added, high-tech fabrics will help us compete globally. This can revive many clusters in Tirupur and Karur. Well done!
Infrastructure spending is always welcome, but I hope it includes improving public transport and reducing pollution in our cities. Growth should be sustainable. The mention of tourism is good - our temples and coastline have so much potential! 🙏
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