Tamil Nadu unveils roadmap to build $1.5-trillion economy by 2031

Chennai: Tamil Nadu finance minister N Marie Wilson on Wednesday presented the state budget (revised estimate) for 2026-27, outlining a roadmap to transform the state into a $1.5-trillion economy by 2031. Wilson said chief minister C Joseph Vijay has successfully navigated political challenges to establish a foundation for transparent governance and principled politics.

"A new 'Tamil Nadu Industrial Policy' will be released to foster innovation and technology-driven growth, support emerging industry sectors, and drive sustainable development and export promotion," he said while presenting his maiden budget. "Since assuming office, seven MoUs worth ₹35,062 crore have been signed with the potential to create 14,790 direct and indirect jobs." The government has allocated ₹4,414 crore for the industries, investment promotion and commerce department. Wilson said an AI-powered investment platform 'Guidance 3.0,' and an upgraded 'Tamil Nadu Single Window Portal 3.0' will be introduced. Further, new SIPCOT industrial parks will be established in industrially backward districts, at ₹3,200 crore over five years.

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"Thoothukudi and Tirunelveli will be declared a 'Space Industrial Investment Zone' and a 'Space Vehicle Common Technical Facility' will be set up with INSPACe," Wilson said. "'Arivagam,' India's first dedicated AI and Innovation city, will begin with a feasibility study, at a cost of ₹5 crore." 'Arivagam', will be established for artificial intelligence and deep-tech development, with facilities including an AI university, an international skill development centre, a semiconductor hardware testing lab, multi-domain innovation incubators, and modern residential infrastructure.

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Regarding the state's fiscal position, Wilson said the overall outstanding debt is ₹10,98,768 crore in the Revised Budget Estimates 2026-27 as against ₹10,99,458 crore in the Interim Budget Estimates 2026-27 (presented by the erstwhile DMK government on February 17 this year prior to the assembly elections).

DMK president MK Stalin described the Revised Budget Estimates as "a damp squib", saying it lacked originality and failed to fulfil the government's promises.