At an industry consultation, stakeholders called for a shift towards high-gross-value-added sectors, port-led development, and faster project approvals within 21 days.

The Tamil Nadu government is set to release its Industrial Policy 2026 soon, with Industries Minister S Keerthana seeking suggestions from leading industrialists on measures that should be incorporated into the new policy.

At the Industry Leaders’ Connect 2026, organised by Guidance Tamil Nadu on Tuesday, industry representatives recommended a stronger focus on creating high-gross-value-added products, promoting port-led industrial development, and addressing the migration of skilled talent to other States.

According to sources, industry leaders also suggested that the new policy should be anchored on greater transparency and predictability in government processes. They urged the State to commit to a 21-day approval timeline for industrial projects and ensure accountability in meeting those deadlines.

Industrialists further sought a stronger handholding mechanism from the government to help investors and companies resolve operational, infrastructure and regulatory issues quickly. They also stressed that the State’s single-window clearance system should operate as a genuinely integrated, fast-track approval platform, reducing delays and improving ease of doing business.

Talent loss concerns drive push for innovation-led industrial ecosystem

Talent retention emerged as a major theme during the discussions. Industry leaders highlighted the growing migration of students and skilled professionals from Tamil Nadu to other technology and industrial hubs, including Bengaluru and Hyderabad. They suggested that the government create a stronger innovation and employment ecosystem, particularly for Gen Z professionals, through high-quality job opportunities and emerging industries, thereby encouraging talent to remain in the State.

The industrialists also recommended that Tamil Nadu focus on sectors such as biopharmaceuticals and electronics manufacturing, especially VLSI packaging, to strengthen its position in advanced manufacturing and technology.

CII Southern Region, in a social media post, said that at the meeting, industry leaders deliberated on strategies to enhance Tamil Nadu’s competitiveness and accelerate the State’s next phase of industrial growth.

Tamil Nadu is India’s No.1 manufacturing state, but to unlock the next phase of growth, we must move beyond volume-led expansion towards higher value creation per acre and per engineer. With increasing land constraints and competition for talent, the focus must shift to high-GVA, land-light sectors such as semiconductor design, advanced EV software and deep-tech GCCs in Tier-2 cities, said Ravichandran Purushothaman, Chairman, CII Southern Region & President, Danfoss India, Danfoss Industries Pvt Ltd.

Tamil Nadu is India’s Number 1 manufacturing state, but only its 5th-largest FDI destination. It produces 9.2 per cent of national GDP on 4 per cent of the land, yet captures only 6 per cent of cumulative FDI. The State wins on output and jobs, but under-captures value and investment, he said.

The constraints, says Purushothaman, are that land is scarce, fertility has fallen to 1.3 (the lowest among large States), and Tamil Nadu is on track to become India’s oldest State by 2031. The working-age base will tighten, so TN’s future depends on value captured per acre and per worker — not on adding low-margin capacity, he said.

By drawing lessons from agile economies, leveraging Tamil Nadu’s strengths in clean energy, and enhancing urban liveability as a talent-retention strategy, we can maximise the return on our human capital. Looking ahead, Gross Value Addition and the number of high-skill jobs generated per acre should serve as key metrics for attracting high-value global investments and retaining top engineering talent within the State, he said.

State reiterates push for faster approvals and investment-friendly ecosystem

In a post on X after the meeting, Keerthana said she had reaffirmed Tamil Nadu’s commitment to building a faster, more responsive and industry-friendly business ecosystem.

“As the State works towards the vision of becoming a $1.5-trillion economy, accelerating ease of doing business remains our key priority. Through time-bound approvals, streamlined processes and proactive governance, we are committed to enabling industries to grow with confidence,” she said.

The minister added that Tamil Nadu would continue to provide a stable policy environment, consistency in reforms and a government that works in partnership with businesses to drive investment, innovation, job creation and inclusive growth.

Published on June 24, 2026