Finance Minister Nirmala Sitharaman's Union Budget 2025-26 announced a ₹12,000 crore allocation for Tamil Nadu covering roads, a new IIT campus in Madurai, hospital upgrades, and coastal conservation.
The budget includes ₹4,500 crore for the Chennai-Kanyakumari coastal highway project, which will connect 12 coastal districts and provide direct access to fishing communities.
A new IIT campus in Madurai will receive ₹1,800 crore over five years, while AIIMS Madurai is allocated ₹2,100 crore for Phase 2 construction.
Opposition parties in Tamil Nadu criticised the allocation as insufficient, noting the state contributes 9.2% of national GST revenue but receives only 4.1% in fiscal transfers.
Industry bodies welcomed the semiconductor manufacturing incentive extension, which benefits Tamil Nadu-based suppliers in the Apple supply chain.