The Tamil Nadu government’s interim budget, presented on Tuesday, February 17, has allocated Rs 1,943 crore to the Micro, Small and Medium Enterprises (MSME) sector for the financial year 2026–27.
The interim budget, tabled in the State Legislative Assembly by Finance Minister Thangam Thennarasu, also highlighted steps being taken to establish a “Fund of Funds” for the MSME sector.
According to the budget speech, bank loans amounting to Rs 10.70 lakh crore have been disbursed to over 40 lakh MSMEs in the state during the five-year tenure of the Dravida Munnetra Kazhagam (DMK) government.
Over the past five years, 18 new industrial estates have been developed by the Tamil Nadu Small Industries Development Corporation (TANSIDCO).
The Minister stated that 23,879 applications have been approved under the ‘Kalaignar Kaivinai Thittam’. The scheme provides financial assistance, skill training and infrastructure support to artisans engaged in handicrafts across 25 categories. Under the scheme, Rs 405 crore in credit assistance and Rs 83 crore in subsidies have been disbursed.
Other initiatives in the MSME sector include the launch of the Tamil Nadu Trade Receivables Discounting System (TReDS) payment platform for MSMEs. So far, 1,461 undertakings have transacted Rs 5,171 crore through the platform.
The Finance Minister also said that the number of registered start-ups in the state has increased fivefold over the past five years, crossing 13,000. He attributed this growth to initiatives such as the Tamil Nadu Startup and Innovation Mission (TANSIM).
The Tamil Nadu Startup Seed Fund (TANSEED) and the ‘Space Technology Fund’ have also been introduced to strengthen the state’s start-up ecosystem.