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Tamil Nadu Investment and Industrial Policy Session

PAFI - 25 September 2026 - 11-32-11 AM.mp4 · 51:05 · 6 speakers

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Summary

The session examined Tamil Nadu’s investment, industrial-policy and growth agenda under the “Vedri Tamizagam” vision. Speaker 1 introduced the session as a government–industry dialogue on building Tamil Nadu into a global growth and investment powerhouse, with particular relevance to the state’s forthcoming industrial policy.

A recorded message delivered by Speaker 3 set out the government’s target of a $1,500,000,000,000 economy by 2036. The message emphasized that the target should translate into jobs, including first formal employment within families, women’s employment, and quality work across districts. It also reported investment commitments of over 1 lakh crore rupees and expected creation of more than 1.2 lakh jobs during the government’s first 100 days.

Speaker 4 described the planned industrial-policy direction: moving from manufacturing to advanced manufacturing, from assembly to research, design and components, and from concentrated growth to district-based development. The new policy is expected to distinguish established focus sectors from emerging sectors, including AI, data centres, GCCs, shipbuilding, space and deep tech. A draft is expected by year-end, followed by official rollout in early 2027.

Ease of doing business was a central theme. Speaker 4 stated that amendments to the Tamil Nadu Business Restoration Act require clearances within 21 days, with deemed approval if the timeframe is missed. The planned Tamil Nadu Investment Promotion Commission, headed by the Chief Secretary, is intended to fast-track major investments and address investor issues.

The discussion emphasized Tamil Nadu’s investment proposition beyond incentives: established sector ecosystems, availability and retention of skilled talent, infrastructure, logistics, policy continuity and reliable disbursement of committed incentives. Speaker 4 said the state seeks realistic rather than “fancy” incentive packages and cited the release of more than 2,800 crores in subsidies due to companies, including commitments made under previous governments.

Audience questions addressed Guidance Tamil Nadu’s outreach plans and regulatory reforms. Speaker 4 said outreach would increase from October, with interest in engagements relating to shipbuilding, maritime and marine sectors, including Korea, Japan, Nordic countries, the US and Japan. On regulatory reform, Speaker 4 reported progress against business-reform and deregulation action plans, while noting that changes requiring legislative amendment may take longer.

The closing remarks characterized Tamil Nadu’s approach as a dual strategy: attracting cutting-edge investment while pursuing broad-based job creation. Speakers encouraged industry participants to collaborate with Guidance Tamil Nadu, identify policy gaps candidly, and bring investment-related challenges forward.

Key takeaways

Tamil Nadu is targeting a $1,500,000,000,000 economy by 2036 and links this target to inclusive, geographically distributed employment.
A revised Tamil Nadu industrial policy is being developed, with a draft expected by year-end and rollout anticipated in early 2027.
The state is pursuing value-chain advancement through advanced manufacturing, R&D, design, components, semiconductor activity, aerospace and defence composites, and GCCs.
The government has enacted a 21-day clearance requirement with deemed approval if approvals are delayed, subject to notification of rules.
Tamil Nadu’s stated competitive advantage is its established ecosystem, skilled workforce, talent retention, infrastructure and policy continuity rather than the highest incentive offer.
Guidance Tamil Nadu welcomed collaboration with PAFI and other industry stakeholders on skills, policy, infrastructure and investor-sentiment issues.

Key moments

Session introduction
Speaker 1 introduces the Tamil Nadu vision and industrial-policy discussion.
Government video message
Speaker 3 sets out the economic target, investment commitments and reform agenda.
Industrial-policy overview
Speaker 4 explains the forthcoming policy and value-chain strategy.
Existing-investor support
Discussion turns to investor aftercare and possible PAFI engagement.
Skilling strategy
Speaker 4 describes industry-led workforce development and semiconductor-skilling plans.
Investment differentiation
Speaker 4 explains the focus on ecosystems and predictable commitments over high incentives.
Outreach question
Speaker 5 asks about Guidance Tamil Nadu’s domestic and international engagement plans.
Regulatory reform question
Speaker 6 raises regulatory reform and regulatory impact assessment.
Advanced manufacturing question
Speaker 6 asks for specific mechanisms to move up the manufacturing value chain.
Closing remarks
Speaker 2 concludes the panel; Speaker 3 summarizes the state’s dual strategy.

Decisions made

Tamil Nadu amended the Tamil Nadu Business Restoration Act to require clearance decisions within 21 days, with deemed approval if the deadline is missed. — Tamil Nadu government
Speaker 4 stated that the legislation had been passed and described the mandatory 21-day clearance and deemed-approval provision.
The Tamil Nadu Investment Promotion Commission is to be headed by the Chief Secretary to fast-track investment commitments and resolve investor issues. — Tamil Nadu government
Speaker 4 described the Commission and stated that it had received legislative approval.

Proposals & suggestions (not confirmed decisions)

PAFI and Guidance Tamil Nadu could establish a forum through which PAFI members raise ease-of-doing-business issues in Tamil Nadu. — suggested by Speaker 2. Outcome: Speaker 4 welcomed scope for collaboration and said Guidance Tamil Nadu engages stakeholders on policy, infrastructure, skilling and investor concerns; no specific forum was confirmed.
Industry stakeholders should bring hard problems, ideas and criticism of Tamil Nadu’s policies to Guidance Tamil Nadu. — suggested by Speaker 3. Outcome: Speaker 4 reiterated openness to industry inputs and collaboration.
PAFI and Guidance Tamil Nadu could collaborate on skills, policy, investment promotion, external engagement and business-intelligence-related issues. — suggested by Speaker 4. Outcome: No specific collaboration initiative was confirmed.

Action items

Action	Owner	Deadline	Time
Share the details of mister Gaurav, who heads the external engagement division, with Speaker 5.	Speaker 4	Not specified

Topics discussed

Session opening and Tamil Nadu context

to 06:21 Speaker 1, Speaker 2

Speaker 1 introduced the session, panelists and its focus on Tamil Nadu’s investment vision and industrial policy. Speaker 2 outlined the state’s manufacturing base, skilled workforce, policy environment, bureaucratic continuity, sectoral evolution and inclusive-growth record.

Recorded government message and investment agenda

to 10:07 Speaker 3

Speaker 3’s recorded message set out the 2036 economic target, first-100-days investment commitments, the 21-day approval framework, planned industrial-policy priorities, sector ambitions, skill development and infrastructure initiatives.

Industrial-policy vision and investment conversion

to 17:27 Speaker 4

Speaker 4 outlined the forthcoming industrial policy, value-chain upgrading, diversified sector strategy, regional growth corridors, Investment Promotion Commission and MOU conversion performance.

Existing investor engagement and skilling

to 25:34 Speaker 2, Speaker 4

Speaker 2 asked about after-sales service for existing investors and future workforce readiness. Speaker 4 described Guidance Tamil Nadu’s investor-engagement functions, existing-investor expansion, the skill registry, industry–academia collaboration, and semiconductor-skilling initiatives.

Competitive investment proposition and incentives

to 31:39 Speaker 2, Speaker 4

Speaker 4 argued that Tamil Nadu is focused on ecosystem development and value-chain advancement rather than competing chiefly through high incentives. The discussion stressed certainty, continuity and timely subsidy disbursement.

Audience question on outreach plans

to 35:50 Speaker 5, Speaker 4

Speaker 5 asked about domestic and international outreach over the next three to six months. Speaker 4 described an external-engagement function, possible activity from October, country desks and prospective engagement in shipbuilding, maritime and marine sectors.

Audience question on regulatory reform

to 44:33 Speaker 6, Speaker 4, Speaker 2

Speaker 6 asked about regulatory reform and regulatory impact assessment. Speaker 4 described clearance reforms, progress on business-reform and deregulation reporting, and constraints where legislative amendments are required. Speaker 6 then commented on the importance of continuity and Tamil Nadu’s sustained industry orientation.

Advanced manufacturing and closing

to 50:57 Speaker 6, Speaker 4, Speaker 2, Speaker 3

Speaker 6 asked how Tamil Nadu intends to enable advanced manufacturing. Speaker 4 cited rare-earth magnets, aerospace and defence composites, R&D, design, packaging and GCCs. Speaker 2 closed the discussion, followed by Speaker 3’s concluding remarks on Tamil Nadu’s dual focus on technology-led investment and widespread job creation.

Important questions

How does Tamil Nadu engage with existing industry, and could PAFI establish a forum to discuss ease-of-doing-business issues? — asked by Speaker 2
Answered Speaker 4 said Guidance Tamil Nadu acts as a one-stop solution and think tank, engages with industry and other stakeholders on policy, infrastructure, skilling and regulatory gaps, and sees scope for collaboration with PAFI.
How is Tamil Nadu preparing its workforce for future skills needs? — asked by Speaker 2
Answered Speaker 4 cited the Tamil Nadu skill registry of almost 18 lakhs skilled labour, apprenticeship activity, industry–academia linkages, industry-led curriculum changes, the School of Semiconductors, and training through government ITIs and polytechnics.
How is Tamil Nadu differentiating itself from other Indian states in attracting investments? — asked by Speaker 2
Answered Speaker 4 said Tamil Nadu emphasizes established sector ecosystems, supplier and component development, talent, infrastructure, policy continuity, and realistic incentives that are reliably disbursed rather than competing through the highest incentive offers.
What domestic and international outreach activities are planned over the next three to six months? — asked by Speaker 5
Answered Speaker 4 said expanded outreach was expected from October, with prospective participation in Government of India delegations to Korea and Japan for shipbuilding, activity related to maritime and marine sectors and Nordic countries, and continuing interest in the US and Japan. Guidance Tamil Nadu also has country desks in several countries.
What are Tamil Nadu’s plans for regulatory reform and regulatory impact assessment? — asked by Speaker 6
Partially answered Speaker 4 described the 21-day approval framework, Chief Secretary-led commission, progress on business-reform and deregulation reporting, and the need for some changes to go through the legislature. Speaker 4 did not directly address whether a regulatory impact assessment process would be adopted.
What specific measures will enable advanced manufacturing and movement up the value chain? — asked by Speaker 6
Answered Speaker 4 cited opportunities in rare-earth magnets, aerospace and defence composites, R&D, design, semiconductor-related activity including packaging, and GCCs creating higher-skilled and higher-paid jobs.

Important numbers & facts

$1,500,000,000,000 by 2036 — Economic target stated in Speaker 3’s recorded message and reiterated by Speaker 4.
Over 1 lakh crore rupees — Company commitments reported during the government’s first 100 days.
More than 1.2 lakh jobs — Expected jobs associated with commitments reported during the first 100 days.
21 days — Required timeframe for investment approvals; delays would result in deemed approval according to Speakers 3 and 4.
By year-end — Expected timing for a draft version of the revised Tamil Nadu industrial policy.
Early 2027 — Expected timing for official rollout of the revised industrial policy.
Almost 41% — Speaker 4’s stated share of India’s merchandise exports from Tamil Nadu in electronics.
Around 23% — Speaker 4’s stated figure for Tamil Nadu in the leather sector.
Around 33% — Speaker 4’s stated figure for Tamil Nadu in textiles.
33–36% — Speaker 4’s stated figure for Tamil Nadu in the automobile sector.
Almost 110 / 109 MOUs — Speaker 4 referred to “almost signed 110, 109 MOUs”; the transcript contains both figures in the same statement.
79 MOUs — MOUs reported as having moved to the land-secured stage.
Close to 72% — Speaker 4’s stated conversion ratio for the MOU progress described.
Almost 50% — Share of more than 100 signed MOUs at the “victory conclave” that Speaker 4 said were expansions by existing companies.
Almost 18 lakhs — Size of the Tamil Nadu skill registry cited by Speaker 4.
More than 2,800 crores — Subsidy amount Speaker 4 said had been released to companies in the current year, including commitments from previous governments.
Another 500 crores — Speaker 4 stated that an additional 500 crores was filed for after the reported release of more than 2,800 crores.
Seven country desks — Number of country desks Speaker 4 said Guidance Tamil Nadu has, followed by examples including Germany, US, Vietnam, Japan and Korea.
222 business reforms action plans — Speaker 4 stated that, to the best of his memory, there were 222 action plans under the business-reforms exercise.
Around 175 — Number of business-reform action plans Speaker 4 said had been completed and reported to the Government of India.
22 mandatory action plans; reports for 17 — Progress on the deregulation compliance report as stated by Speaker 4.
50,000 to 60,000 — Starting entry package Speaker 4 cited for a manufacturing job in the rare-earth-magnets context; currency and pay period were not specified.

Speaker highlights

Speaker 1

Main points

Opened the session and introduced its focus on the Tamil Nadu vision document and industrial policy.
Introduced Speaker 2, Speaker 3 and Speaker 4 as participants.
Invited audience questions after the panel discussion.

Speaker 2

Main points

Moderated the session and described Tamil Nadu as an industrialized state with skilled talent, progressive policies and bureaucratic continuity.
Asked Speaker 4 about support for existing industry, future skilling, Tamil Nadu’s investment differentiation, and advanced manufacturing.
Agreed that policy consistency, predictability and logistics are important to industry, with incentives serving a more limited role.
Closed the panel discussion and invited Speaker 3 to deliver the closing remarks.

Positions

Tamil Nadu’s inclusive growth is as important as its economic growth.
Industry values policy consistency, predictability and logistical efficiency alongside incentives.

Questions raised

How does Tamil Nadu engage with existing industry and could PAFI have a forum to raise ease-of-doing-business issues?
How is Tamil Nadu preparing a future-ready skilled workforce?
How is Tamil Nadu differentiating itself from other Indian states in attracting investment?

Speaker 3

Main points

Delivered a recorded message outlining the $1,500,000,000,000 economy target by 2036, investment commitments and policy priorities.
Stated that approvals would be decided within 21 days, with deemed approval if delayed.
Highlighted planned focus on semiconductors, shipbuilding, AI, space technology and GCCs, along with employer-led skilling and ready-to-use infrastructure.
Later delivered closing remarks, characterizing Tamil Nadu’s approach as combining cutting-edge investment and widespread job creation.

Positions

Economic targets should have tangible effects on employment, women’s earnings and opportunities across districts.
Government should hear industry criticism and difficult problems before investments go to other states.
Tamil Nadu’s governance and policy framework are central to its investment proposition.

Commitments

Stated an intention to attend the session in person next year.

Speaker 4

Main points

Outlined the Tamil Nadu vision, upcoming industrial policy, sector priorities, regional-development approach and MOU conversion figures.
Described the investment-promotion framework, including Guidance Tamil Nadu, the planned Investment Promotion Commission and 21-day approvals.
Explained the state’s focus on ecosystem development, components, supplier networks, advanced manufacturing, talent and policy continuity rather than aggressive incentive competition.
Reported investor-engagement, skilling, outreach and regulatory-reform activities.
Explained examples of advanced-manufacturing opportunities, including rare-earth magnets, aerospace and defence composites, semiconductor design, R&D, packaging and GCCs.

Positions

Tamil Nadu should move from assembly and conventional manufacturing toward advanced manufacturing, R&D, design and higher-value employment.
A dependable ecosystem and assured delivery of realistic commitments are more important than headline incentive levels.
Industry should identify needed skills, with the state providing training at scale.

Commitments

Intends to strengthen Guidance Tamil Nadu’s association with PAFI in coming years.
Will share contact details for the external-engagement lead, mister Gaurav, with Speaker 5.
Stated that Guidance Tamil Nadu is open to partnering on relevant events and collaboration areas.

Speaker 5

Main points

Praised Guidance Tamil Nadu based on experience working with investment-promotion arms across Indian states.
Asked about Guidance Tamil Nadu’s planned domestic and international outreach during the next three to six months.

Positions

Guidance Tamil Nadu is, in Speaker 5’s experience, a leading investment-promotion organization in India.

Questions raised

What outreach activities are planned in the next three to six months, including in the US, Europe or India?

Speaker 6

Main points

Asked about regulatory reforms and the use of regulatory impact assessment.
Commented on the importance of continuity in Tamil Nadu’s industry policy and investment promotion.
Asked for specific examples of how Tamil Nadu will enable advanced manufacturing.

Positions

There remains significant scope for regulatory reform.
Tamil Nadu’s consistent political and bureaucratic focus on investments and jobs provides confidence to industry.
The state cannot rest on its laurels in a disruptive environment.

Questions raised

What are Tamil Nadu’s plans for regulatory reform and regulatory impact assessment?
What specific measures will enable manufacturing or advanced manufacturing to move up the value chain?

Follow-ups

Notify rules implementing the 21-day clearance and deemed-approval framework. (Tamil Nadu government)
Publish the draft revised Tamil Nadu industrial policy. (Tamil Nadu government)
Complete remaining business-reform and deregulation actions, including matters requiring legislative changes. (Tamil Nadu government)
Clarify whether and how regulatory impact assessment will be used in Tamil Nadu’s regulatory-reform process.
Develop potential PAFI–Guidance Tamil Nadu collaboration on investor concerns, skilling, policy and related areas.
Share external-engagement contact details with Speaker 5. (Speaker 4)