New Delhi: Artificial intelligence, digital skills and Gen Z-focused programmes emerged as major priorities in Tamil Nadu’s revised Budget for 2026-27.
The state government announced several measures to create a future-ready workforce and expand its technology ecosystem.
Tamil Nadu Finance Minister N Marie Wilson presented the maiden Budget of the Tamilaga Vettri Kazhagam-led coalition government on August 5. The Budget sets out the government’s plan to turn Tamil Nadu into a USD 1.5 trillion economy by 2036.
Dedicated AI city
The government plans to establish ‘Arivagam’, which it described as India’s first dedicated AI and Innovation City. The proposed facility will support artificial intelligence and deep-tech development.
Arivagam will house an AI university, a semiconductor testing laboratory, innovation incubators and skill development centres. The government will conduct a feasibility study for the project at a cost of Rs 5 crore.
Under the AI Industry Development Programme, the state will train five lakh students by 2031. The programme will cover students from engineering colleges, polytechnics and Industrial Training Institutes.
The government will work with leading academic institutions, including IIT Madras, to implement the programme. A committee of experts from industry and academia will prepare specialised AI courses for higher education institutions.
Tamil Nadu also plans to develop a Tamil Large Language Model and AI-based language tools for official communication. Leading universities will help the government create an AI model for the Tamil language.
Faster investment approvals
The government will launch AI-powered Guidance 3.0 and upgrade the Single Window Portal to version 3.0. The platforms will simplify and speed up investment approvals.
The Tamil Nadu AI Mission will expand its work to include artificial intelligence, quantum technology and animation, visual effects, gaming, comics and extended reality, also known as AVGC-XR.
The mission will also support AI applications in healthcare, agriculture, education and public services.
The Budget allocated Rs 40 crore for SPEED, an AI-enabled online planning approval platform. It will connect the Chennai Metropolitan Development Authority, the Directorate of Town and Country Planning and local bodies to process building approvals faster.
AI will also support e-governance under the Rs 2,117-crore Integrated Urban Development Mission. The government plans to use the technology for road safety enforcement, speech-to-text services, administrative work and quality audits.
AI lessons in schools
The government will expand the Tamil Nadu School Programme for Artificial Intelligence, Robotics and Knowledge of Online Tools, known as TN SPARK. The programme will reach another 2,600 government schools in addition to the existing 5,000 schools.
Under the revised three-level system, students in Classes 6 to 8 will learn the basics of AI and robotics. Students in Classes 9 and 10 will receive intermediate training.
Students in Classes 11 and 12 will have the option to choose specialised courses in emerging technologies.
The government will also introduce a new Artificial Intelligence and Machine Learning trade in 50 government ITIs over the next five years. The initiative aims to train 24,000 students and prepare them for jobs in the AI sector.
Rs 2,000-crore laptop scheme
The government announced the ‘Vetri Laptop Scheme’ to improve access to digital education among college students.
It allocated Rs 2,000 crore for the programme. The scheme recognises laptops as important learning tools in a digital economy.
Industry-linked skill training
Under the ‘Vetri Skill Training Scheme’, the state will provide industry-based training to 12 lakh college students and one lakh unemployed young people during the year.
The government will also arrange internships for about 20,000 young people in partnership with government departments and private companies. Graduates and vocational trainees will receive a monthly stipend during their internships.
Curriculum and library reforms
Tamil Nadu will spend Rs 25 crore to revise the school curriculum according to changing industry needs.
The new curriculum will focus on critical thinking, creativity, digital skills, financial literacy and global citizenship.
The government also allocated Rs 10 crore to convert public libraries into digital learning and innovation centres. District central libraries will offer digital content, free Wi-Fi, co-working areas and round-the-clock internet access.
Bicycles for Gen Z
The government will distribute branded bicycles, helmets and water bottles to about 5.32 lakh Class XI students in government and government-aided schools.
The scheme will cost Rs 277 crore.
Other education measures include the modernisation of government schools, the establishment of schools of excellence and the expansion of technology-based learning.
Digital governance push
The Budget also proposes greater use of technology to improve public administration and raise state revenue.
The government will expand faceless Goods and Services Tax assessments and introduce faceless services in the Registration Department. It will also fully computerise the monitoring of mining activities.
The government expects these measures to generate an additional Rs 15,000 crore in revenue.
A new ‘Drug-Free Tamil Nadu’ mobile application will allow students and teachers to report drug trafficking and substance abuse confidentially.
The Budget also includes steps to strengthen the semiconductor and electronics sectors, support deep-tech innovation and help startups. The government plans to improve digital public infrastructure and promote greater cooperation between educational institutions and industries.
