Next Phase of Tamil Nadu’s Growth is About Creating Value Over Volume: TN’s Minister for Industries S. Keerthana
TN's Minister for Industries S. Keerthana, on how the state is preparing for the next decade of global manufacturing.
- Aug 25, 2026,
- Updated Aug 25, 2026 5:00 AM IST
Tamil Nadu’s industrial history dates to the 1950s. Since then, the state has remained at the forefront of manufacturing.
Let’s look at the diversification across manufacturing segments to begin with. Be it automobiles, textiles and apparel, or auto components, Tamil Nadu is well positioned in all three. That, with a high-quality workforce, gives comfort to potential investors. Through the decades, the state has adapted to the opportunities by making the right moves, creating industrial estates and getting the best technology. All these have led to a unique model, but one that is tremendously robust.
Tamil Nadu has been the fastest-growing major state in exports over the seven years and emerged as the leader in the number of factories and total factory workers categories.
Carrying forward the state’s industrial legacy is S. Keerthana, Minister for Industries, Government of Tamil Nadu. At 30, she is the youngest member of the state cabinet. In a chat with Business Today, she articulates the manufacturing vision and why Tamil Nadu is well set for every technological disruption. Edited excerpts:
Q: What makes Tamil Nadu a preferred manufacturing destination for companies of all sizes?
Tamil Nadu’s strength lies in the fact that it offers something valuable to every manufacturer, whether it is a global corporation, a fast-growing mid-sized company, or an MSME (micro, small and medium enterprise).
We have India’s largest manufacturing workforce, with nearly 2.9 million people employed in factories, giving investors the confidence that they can scale operations without worrying about talent availability. Equally important is the fact that we have one of the country’s deepest supplier ecosystems. Tamil Nadu has the largest number of registered MSMEs in India, accounting for nearly 15% of the total. These enterprises are not isolated businesses; they are deeply integrated into the supply chains of large manufacturers and form the backbone of our industrial economy.
Another defining strength is diversification. Tamil Nadu is a national leader in electronics exports, automobiles and auto components, and textiles and apparel. This broad industrial base makes our economy resilient and enables investors to benefit from strong cross-sector linkages.
That said, our greatest advantage is something that cannot be built overnight. Manufacturing ecosystems are created over decades. What investors find in Tamil Nadu today particularly appealing is the cumulative strength of talent, suppliers, infrastructure, policy stability and institutional capacity coming together in one place. That is why companies continue to choose Tamil Nadu—not for one advantage, but for an ecosystem that consistently enables long-term growth.
Q: Over time, how have industrial policies helped Tamil Nadu in attracting large manufacturing investments?
One of Tamil Nadu’s greatest strengths has been its ability to stay a step ahead. Over the decades, successive industrial policies have anticipated where manufacturing was heading and positioned the state accordingly. Whether it was automobiles, textiles, electronics or electric mobility, Tamil Nadu has consistently adapted to changing industrial realities while providing investors with stability and confidence.
That continuity has been one of the defining features of our industrial ecosystem. A few things matter to businesses such as predictability, ease-of-doing business and speed of execution. Institutions such as Guidance Tamil Nadu, combined with progressive sector-specific policies, have helped deliver exactly that.
The next wave will be driven by semiconductors, advanced electronics, artificial intelligence (AI)-enabled manufacturing, clean energy technologies, aerospace, advanced materials and high-value engineering. Our responsibility is not merely to respond to these changes, but to prepare for them before they become mainstream.
That is the philosophy behind our work on Industrial Policy 2026. We are not preparing for the next investment cycle; we are preparing Tamil Nadu for the next decade of global manufacturing. The policy will focus on moving the state further up the value chain by attracting integrated manufacturing, design, engineering, research and innovation-led investments, while creating the high-quality, white-collar employment opportunities that will define the economy of the future.
Our objective is clear: to ensure Tamil Nadu remains not only India’s manufacturing leader today, but also its most future-ready manufacturing destination for decades to come.
Q: How has Tamil Nadu built such strong manufacturing infrastructure, and what is the government’s vision going forward?
Infrastructure has always been one of Tamil Nadu’s greatest competitive advantages.
Our network of SIPCOT (State Industries Promotion Corporation of Tamil Nadu) industrial parks provides manufacturers with ready industrial land and plug-and-play infrastructure. Combined with an extensive highway and rail network, multiple ports, and international airports, companies can efficiently connect their factories to both domestic and global markets.
But the next phase of industrialisation demands a broader vision. Earlier, industrial development largely meant creating industrial estates. Going forward, it will mean building integrated industrial ecosystems where manufacturing, suppliers, logistics, research and development (R&D), skilling, housing and social infrastructure evolve together.
That is the direction in which we are moving through integrated industrial townships, industrial corridors, multimodal logistics infrastructure and advanced manufacturing parks.
We also want to invest much more in research and innovation infrastructure by strengthening partnerships among universities, research institutions and industry. Increasingly, manufacturing competitiveness will be determined not just by production capacity, but by a state’s ability to innovate.
Ultimately, infrastructure is no longer just about roads, land or utilities. It is about creating an ecosystem that lowers costs, improves productivity, accelerates innovation and enables higher-value manufacturing and at the same time, provides a good quality of life
To workers.
Q: Tamil Nadu has a rich manufacturing history since the 1950s. How has the state adapted to the era of technology and AI?
Tamil Nadu’s manufacturing story has always been one of continuous evolution.
We began with textiles, heavy engineering, automobiles and public-sector manufacturing. Today, we are among India’s leaders in electronics manufacturing, electric mobility, advanced automotive systems and several emerging technology sectors.
Manufacturing, however, cannot remain static. Technology is fundamentally transforming the factory floor. AI, automation, robotics and the Industrial Internet of Things are improving productivity, reducing waste and reshaping manufacturing processes across industries.
As these technologies become mainstream, our responsibility is not only to help industries become globally competitive, but also to ensure that technological progress translates into greater opportunities for our people. Technology should enhance human potential, not diminish it. The factory of the future will create demand not only for technicians and operators, but also for production engineers, robotics programmers, AI specialists, chip designers and data analysts.
That is why Tamil Nadu has been proactive in introducing dedicated policies for semiconductors, advanced electronics, electric mobility, aerospace and defence, while simultaneously investing in skilling and research. Our aspiration is not simply to manufacture more products, but to manufacture smarter, create more value within the state, and generate high-quality jobs that will define the economy of the future.
Q: How important is technical education in supporting manufacturing growth?
Manufacturing competitiveness ultimately depends on people. Tamil Nadu produces nearly 143,000 engineering graduates every year, supported by one of the highest gross enrolment ratios in higher education in the country. We are home to some of India’s finest institutions, including IIT Madras and several of the country’s highest-ranked engineering colleges. Equally important are the hundreds of engineering colleges, polytechnics and skill development institutions spread across the state, which create a deep and geographically diverse talent pipeline for industry.
However, today’s industries require far more than academic qualifications. They need graduates who are industry-ready from Day One.
That is why our skilling initiatives increasingly involve industry participation in curriculum design, practical training, apprenticeships and certification. Over the last few years, more than 4.1 million young people have been trained through industry-aligned programmes developed in partnership with over 1,400 companies.
Another unique strength is the diversity of our workforce. Nearly 43% of India’s women employed in manufacturing work in Tamil Nadu, making our industrial ecosystem one of the most inclusive in the country.
As manufacturing becomes more technology-driven, the demand for engineers, designers, AI specialists, data analysts and advanced technicians will only increase. For us, education, skilling and industrial policy are not separate agendas—they are different parts of the same strategy to build a globally competitive, innovation-led manufacturing economy.
Q: Your government has recently concluded its maiden investment conclave, Vettri Tamil Nadu. With this, total investments under the government are over Rs 1 lakh crore. You have spoken about Tamil Nadu’s next phase being about creating value rather than simply adding manufacturing capacity. Is the investment conclave an indication of this?
The conclave is a reflection of how Tamil Nadu’s industrial ambition is evolving. The scale of investment is important, but more significant is the nature of the investments. We are increasingly seeing interest in areas such as advanced manufacturing, electronics, technology, engineering, clean energy and other sectors that have the potential to create greater value.
Fifteen industry sectors were represented, from data centres and auto to life sciences, aerospace and deep tech. This is exactly the diversification we have been speaking about earlier.
Plus, we have around 25,500 projected jobs from the recent announcements. This is across sectors like electronics and semiconductors, aerospace and defence, life sciences, data centres, and R&D and GCCs.
Q: The state has attracted a significant pipeline of investments. How will you ensure that these MoUs translate into actual projects on the ground?
Investment announcements matter only when they translate into projects, jobs and economic value. Our focus therefore does not end with signing an MoU. The real work begins after that.
We are strengthening the mechanisms for project facilitation, approvals, land, infrastructure and coordination across departments, to ensure companies can quickly move from commitment to implementation. Our approach is increasingly about conversion and execution.
@krishnagopalan
Tamil Nadu’s industrial history dates to the 1950s. Since then, the state has remained at the forefront of manufacturing.
Let’s look at the diversification across manufacturing segments to begin with. Be it automobiles, textiles and apparel, or auto components, Tamil Nadu is well positioned in all three. That, with a high-quality workforce, gives comfort to potential investors. Through the decades, the state has adapted to the opportunities by making the right moves, creating industrial estates and getting the best technology. All these have led to a unique model, but one that is tremendously robust.
Tamil Nadu has been the fastest-growing major state in exports over the seven years and emerged as the leader in the number of factories and total factory workers categories.
Carrying forward the state’s industrial legacy is S. Keerthana, Minister for Industries, Government of Tamil Nadu. At 30, she is the youngest member of the state cabinet. In a chat with Business Today, she articulates the manufacturing vision and why Tamil Nadu is well set for every technological disruption. Edited excerpts:
Q: What makes Tamil Nadu a preferred manufacturing destination for companies of all sizes?
Tamil Nadu’s strength lies in the fact that it offers something valuable to every manufacturer, whether it is a global corporation, a fast-growing mid-sized company, or an MSME (micro, small and medium enterprise).
We have India’s largest manufacturing workforce, with nearly 2.9 million people employed in factories, giving investors the confidence that they can scale operations without worrying about talent availability. Equally important is the fact that we have one of the country’s deepest supplier ecosystems. Tamil Nadu has the largest number of registered MSMEs in India, accounting for nearly 15% of the total. These enterprises are not isolated businesses; they are deeply integrated into the supply chains of large manufacturers and form the backbone of our industrial economy.
Another defining strength is diversification. Tamil Nadu is a national leader in electronics exports, automobiles and auto components, and textiles and apparel. This broad industrial base makes our economy resilient and enables investors to benefit from strong cross-sector linkages.
That said, our greatest advantage is something that cannot be built overnight. Manufacturing ecosystems are created over decades. What investors find in Tamil Nadu today particularly appealing is the cumulative strength of talent, suppliers, infrastructure, policy stability and institutional capacity coming together in one place. That is why companies continue to choose Tamil Nadu—not for one advantage, but for an ecosystem that consistently enables long-term growth.
Q: Over time, how have industrial policies helped Tamil Nadu in attracting large manufacturing investments?
One of Tamil Nadu’s greatest strengths has been its ability to stay a step ahead. Over the decades, successive industrial policies have anticipated where manufacturing was heading and positioned the state accordingly. Whether it was automobiles, textiles, electronics or electric mobility, Tamil Nadu has consistently adapted to changing industrial realities while providing investors with stability and confidence.
That continuity has been one of the defining features of our industrial ecosystem. A few things matter to businesses such as predictability, ease-of-doing business and speed of execution. Institutions such as Guidance Tamil Nadu, combined with progressive sector-specific policies, have helped deliver exactly that.
The next wave will be driven by semiconductors, advanced electronics, artificial intelligence (AI)-enabled manufacturing, clean energy technologies, aerospace, advanced materials and high-value engineering. Our responsibility is not merely to respond to these changes, but to prepare for them before they become mainstream.
That is the philosophy behind our work on Industrial Policy 2026. We are not preparing for the next investment cycle; we are preparing Tamil Nadu for the next decade of global manufacturing. The policy will focus on moving the state further up the value chain by attracting integrated manufacturing, design, engineering, research and innovation-led investments, while creating the high-quality, white-collar employment opportunities that will define the economy of the future.
Our objective is clear: to ensure Tamil Nadu remains not only India’s manufacturing leader today, but also its most future-ready manufacturing destination for decades to come.
Q: How has Tamil Nadu built such strong manufacturing infrastructure, and what is the government’s vision going forward?
Infrastructure has always been one of Tamil Nadu’s greatest competitive advantages.
Our network of SIPCOT (State Industries Promotion Corporation of Tamil Nadu) industrial parks provides manufacturers with ready industrial land and plug-and-play infrastructure. Combined with an extensive highway and rail network, multiple ports, and international airports, companies can efficiently connect their factories to both domestic and global markets.
But the next phase of industrialisation demands a broader vision. Earlier, industrial development largely meant creating industrial estates. Going forward, it will mean building integrated industrial ecosystems where manufacturing, suppliers, logistics, research and development (R&D), skilling, housing and social infrastructure evolve together.
That is the direction in which we are moving through integrated industrial townships, industrial corridors, multimodal logistics infrastructure and advanced manufacturing parks.
We also want to invest much more in research and innovation infrastructure by strengthening partnerships among universities, research institutions and industry. Increasingly, manufacturing competitiveness will be determined not just by production capacity, but by a state’s ability to innovate.
Ultimately, infrastructure is no longer just about roads, land or utilities. It is about creating an ecosystem that lowers costs, improves productivity, accelerates innovation and enables higher-value manufacturing and at the same time, provides a good quality of life
To workers.
Q: Tamil Nadu has a rich manufacturing history since the 1950s. How has the state adapted to the era of technology and AI?
Tamil Nadu’s manufacturing story has always been one of continuous evolution.
We began with textiles, heavy engineering, automobiles and public-sector manufacturing. Today, we are among India’s leaders in electronics manufacturing, electric mobility, advanced automotive systems and several emerging technology sectors.
Manufacturing, however, cannot remain static. Technology is fundamentally transforming the factory floor. AI, automation, robotics and the Industrial Internet of Things are improving productivity, reducing waste and reshaping manufacturing processes across industries.
As these technologies become mainstream, our responsibility is not only to help industries become globally competitive, but also to ensure that technological progress translates into greater opportunities for our people. Technology should enhance human potential, not diminish it. The factory of the future will create demand not only for technicians and operators, but also for production engineers, robotics programmers, AI specialists, chip designers and data analysts.
That is why Tamil Nadu has been proactive in introducing dedicated policies for semiconductors, advanced electronics, electric mobility, aerospace and defence, while simultaneously investing in skilling and research. Our aspiration is not simply to manufacture more products, but to manufacture smarter, create more value within the state, and generate high-quality jobs that will define the economy of the future.
Q: How important is technical education in supporting manufacturing growth?
Manufacturing competitiveness ultimately depends on people. Tamil Nadu produces nearly 143,000 engineering graduates every year, supported by one of the highest gross enrolment ratios in higher education in the country. We are home to some of India’s finest institutions, including IIT Madras and several of the country’s highest-ranked engineering colleges. Equally important are the hundreds of engineering colleges, polytechnics and skill development institutions spread across the state, which create a deep and geographically diverse talent pipeline for industry.
However, today’s industries require far more than academic qualifications. They need graduates who are industry-ready from Day One.
That is why our skilling initiatives increasingly involve industry participation in curriculum design, practical training, apprenticeships and certification. Over the last few years, more than 4.1 million young people have been trained through industry-aligned programmes developed in partnership with over 1,400 companies.
Another unique strength is the diversity of our workforce. Nearly 43% of India’s women employed in manufacturing work in Tamil Nadu, making our industrial ecosystem one of the most inclusive in the country.
As manufacturing becomes more technology-driven, the demand for engineers, designers, AI specialists, data analysts and advanced technicians will only increase. For us, education, skilling and industrial policy are not separate agendas—they are different parts of the same strategy to build a globally competitive, innovation-led manufacturing economy.
Q: Your government has recently concluded its maiden investment conclave, Vettri Tamil Nadu. With this, total investments under the government are over Rs 1 lakh crore. You have spoken about Tamil Nadu’s next phase being about creating value rather than simply adding manufacturing capacity. Is the investment conclave an indication of this?
The conclave is a reflection of how Tamil Nadu’s industrial ambition is evolving. The scale of investment is important, but more significant is the nature of the investments. We are increasingly seeing interest in areas such as advanced manufacturing, electronics, technology, engineering, clean energy and other sectors that have the potential to create greater value.
Fifteen industry sectors were represented, from data centres and auto to life sciences, aerospace and deep tech. This is exactly the diversification we have been speaking about earlier.
Plus, we have around 25,500 projected jobs from the recent announcements. This is across sectors like electronics and semiconductors, aerospace and defence, life sciences, data centres, and R&D and GCCs.
Q: The state has attracted a significant pipeline of investments. How will you ensure that these MoUs translate into actual projects on the ground?
Investment announcements matter only when they translate into projects, jobs and economic value. Our focus therefore does not end with signing an MoU. The real work begins after that.
We are strengthening the mechanisms for project facilitation, approvals, land, infrastructure and coordination across departments, to ensure companies can quickly move from commitment to implementation. Our approach is increasingly about conversion and execution.
@krishnagopalan