TN Budget 2025: Govt Unveils 2,000-Acre Modern City, Semiconductor Mission 2030 & More.

Tamil Nadu has outlined an ambitious roadmap for economic growth, targeting a 14.5% expansion in nominal terms for FY26. As part of this vision, the state has allocated ₹5,833 crore to industries and MSMEs, up from ₹4,481 crore in the previous year.

A key highlight of the budget is the launch of the Tamil Nadu Semiconductor Mission-2030, a five-year initiative with an estimated investment of ₹500 crore. To leverage the state’s strength in semiconductor design, a Semiconductor Fabless Lab will be set up in Chennai at a cost of ₹100 crore in collaboration with industry and academia.

To decongest Chennai, the government plans to develop a 2,000-acre global city near the capital. The Tamil Nadu Industrial Development Corporation (TIDCO) will spearhead the project, which will feature IT parks, trade zones, R&D centers, high-tech firms, financial institutions, and both public and private educational and healthcare facilities. The city will also include multi-storey residential complexes catering to various income groups.

Major Announcements in the Budget:

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  Skill Development & Industrial Growth:

  
  
  
  
  
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    ₹152 crore for ten new Industrial Training Institutes (ITIs), training 1,308 students annually.

    
    
  
  
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    Seven ITIs for construction workers’ children, benefiting 1,370 students.

    
    
  
  
  
  


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  Employment & Sectoral Development:

  
  
  
  
  
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    Non-leather footwear hubs to create 1 lakh jobs, with 80% reserved for women.

    
    
  
  
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    Footwear parks planned in Madurai and Cuddalore, generating 20,000 jobs.

    
    
  
  
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    Hosur to emerge as a Global Capability Centre (GCC) hub for R&D and IT, akin to Chennai’s OMR.

    
    
  
  
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    A Bioscience Park near Chennai for biotech and life sciences manufacturing.

    
    
  
  
  
  


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  Support for the New Economy & Workers:

  
  
  
  
  
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    ₹20,000 subsidy for 2,000 gig workers to buy electric scooters.

    
    
  
  
  
  


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  Maritime & Textile Sectors:

  
  
  
  
  
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    Tamil Nadu Maritime Transport Manufacturing Policy 2025 to boost shipbuilding and engine production, creating 30,000 jobs in Cuddalore and Thoothukudi.

    
    
  
  
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    Man-Made Fibers (MMF) & Technical Textiles Industrial Park in Thoothukudi to support green hydrogen and automobile sectors.

    
    
  
  
  
  


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  New Industrial Parks:

  
  
  
  
  
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    500 acres in Cuddalore and 200 acres in Pudukottai for industrial expansion.

    
    
  
  
  
  

With these strategic investments, Tamil Nadu aims to reinforce its position as an industrial and technology powerhouse, driving employment and innovation across key sectors.

HBL