CHENNAI:
Tamil Nadu's maiden Budget under the TVK government has drawn a positive response from industry bodies and policy experts, who said it strikes a balance between fiscal discipline, industrial growth and social development while laying the groundwork for the State's long-term economic ambitions.
Nithin Chandra, Senior Partner at Kearney, said the Budget sends an important message that expanding welfare schemes must be backed by stronger fiscal management. While welcoming the proposal to raise ₹16,000 crore through a Revenue Enhancement Committee, he argued that the State's revenue potential remains far greater.
He pointed out that Tamil Nadu has one of the strongest consumption bases among major states but lags in GST realisation. Stamp duty collections have seen little growth over the past five years despite a buoyant property market, while state excise revenues remain well below Karnataka's despite comparable consumption. Chandra also flagged leakages in quarrying and procurement, saying tighter enforcement and greater competition in public procurement could unlock significant revenues and help finance the State's aspiration of becoming a $1.5 trillion economy.
The Madras Chamber of Commerce and Industry (MCCI) said the Budget presents a comprehensive roadmap that combines economic growth with investments in human capital and inclusive development. MCCI president A Viswanathan welcomed the focus on manufacturing, infrastructure, MSMEs, technology, skill development and ease of doing business. The Chamber particularly endorsed the proposed Industrial Policy, the SPEED single-window platform, expansion of SIPCOT industrial parks, the Space Industrial Investment Zone, the Tamil Nadu AI Mission and the proposed AI and Innovation City, Arivagam. It also praised plans to establish new SIPCOT parks in industrially backward districts and initiatives to strengthen the textile sector through design, technical textiles and infrastructure upgrades.
Dr GSK Velu, Chairman of FICCI Tamil Nadu State Council, said the Budget's emphasis on fiscal discipline, governance reforms, revenue augmentation and ease of doing business demonstrated the government's commitment to building a resilient economy while sustaining its focus on social welfare, women empowerment and entrepreneurship.
The Southern India Chamber of Commerce and Industry (SICCI) said that it welcomes the proposed internship opportunities for 20,000 youth in the first phase, skill and employability training for one lakh job seekers, and five new Industrial Training Institutes at an outlay of ₹90 crore. Industry linkage will be critical to ensure that course design, assessment and placements are aligned with actual demand. SICCI stands ready to help shape curricula and facilitate internships and placements across its member network.
Tamil Nadu's maiden Budget under the TVK government has drawn a positive response from industry bodies and policy experts, who said it strikes a balance between fiscal discipline, industrial growth and social development while laying the groundwork for the State's long-term economic ambitions.
Nithin Chandra, Senior Partner at Kearney, said the Budget sends an important message that expanding welfare schemes must be backed by stronger fiscal management. While welcoming the proposal to raise ₹16,000 crore through a Revenue Enhancement Committee, he argued that the State's revenue potential remains far greater.
He pointed out that Tamil Nadu has one of the strongest consumption bases among major states but lags in GST realisation. Stamp duty collections have seen little growth over the past five years despite a buoyant property market, while state excise revenues remain well below Karnataka's despite comparable consumption. Chandra also flagged leakages in quarrying and procurement, saying tighter enforcement and greater competition in public procurement could unlock significant revenues and help finance the State's aspiration of becoming a $1.5 trillion economy.
The Madras Chamber of Commerce and Industry (MCCI) said the Budget presents a comprehensive roadmap that combines economic growth with investments in human capital and inclusive development. MCCI president A Viswanathan welcomed the focus on manufacturing, infrastructure, MSMEs, technology, skill development and ease of doing business. The Chamber particularly endorsed the proposed Industrial Policy, the SPEED single-window platform, expansion of SIPCOT industrial parks, the Space Industrial Investment Zone, the Tamil Nadu AI Mission and the proposed AI and Innovation City, Arivagam. It also praised plans to establish new SIPCOT parks in industrially backward districts and initiatives to strengthen the textile sector through design, technical textiles and infrastructure upgrades.
Dr GSK Velu, Chairman of FICCI Tamil Nadu State Council, said the Budget's emphasis on fiscal discipline, governance reforms, revenue augmentation and ease of doing business demonstrated the government's commitment to building a resilient economy while sustaining its focus on social welfare, women empowerment and entrepreneurship.
The Southern India Chamber of Commerce and Industry (SICCI) said that it welcomes the proposed internship opportunities for 20,000 youth in the first phase, skill and employability training for one lakh job seekers, and five new Industrial Training Institutes at an outlay of ₹90 crore. Industry linkage will be critical to ensure that course design, assessment and placements are aligned with actual demand. SICCI stands ready to help shape curricula and facilitate internships and placements across its member network.
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