The State Budget 2026-27 presented by Finance Minister N. Marie Wilson has evoked mixed reaction from industry leaders of Tiruchi.
While the announcement on industrial push targeting $1.5 trillion economy, feasibility study on Artificial Intelligence and deep-tech city, plan to develop tailored industrial parks in the under developed districts and thrust on imparting AI skills among the students of Industrial Training Institutes have received well among the captains of industry, absence of announcement on removing fixed charges in electricity bills for industries and establishment of dry park in Tiruchi have not gone well among the leaders.
N. Kanagasabapathy, president, Tiruchi Micro Small and Medium Enterprises Association, said that thrust had been given to enhance the development and administrative efficiency. The push for targeting the $1.5 trillion economy would augur well for the industrial climate in the State. It would strengthen micro, small and medium enterprises as well.
The plan to develop tailored industrial parks by the Small Industries Promotion Corporation of Tamil Nadu (SIPCOT) would boost industrial activities in industrially backward districts. Similarly, the proposed AI training for the students of ITIs would enable the industry to get technology-driven, skilled manpower.
G.B. Ramprakash, vice president, Tiruchi Small Industries Micro Manufacturing Association, said that the State government should declare Tiruchi as a Deep-Tech City so as to accelerate growth and make use of the defence corridor project. Rollout of ‘Guidance 3.0’ powered by AI along with the upgraded Tamil Nadu Single Window Portal 3.0 would augur well for streamlining statutory approvals and Non Objection Certificates into a unified interface.
The budget had made provisions for the Information and Technology industry with the allocation of ₹398 crore for the AI-focused initiatives across education, governance and industrial sectors. The proposal to implement AI Agentive Workflows as well as online performance assessments would open up opportunities for the IT sector to provide solutions to the government departments, said Bharath Manoharan, founder DigiPlus, a company based out of Tiruchi and Dubai and added that the allocation of ₹2,500 crore to promote investment in industries was also expected to trickle down to the IT sector as tech infrastructure forms the backbone of operations across all industries.
R. Rajappa of Tamil Nadu Boilers and Boiler Components Manufacturers Association said that allocation of ₹352 crore for the women entrepreneurs was a welcome step.
Mr. Kanagasabapathy said that though the Budget had announced dry ports in the State, there was no specific announcement on the setting up of the facility in Tiruchi. It had dampened the spirit of the manufacturers and exporters of the region, who have been voicing the demand for so long.
Mr. Rajappa said that fixed charges, levied by the Tamil Nadu Power Development Corporation Ltd, had been eating into the health of small industry to big industry. It should have been removed.
Published – August 05, 2026 07:13 pm IST
