Traditionally, Tamil Nadu has always been in the forefront of industrialisation with a strong presence in the manufacture of engineering and auto components, textiles, leather, sugar etc. During the post liberalisation period since 1991, private Sector began to take over the lead in the industrial development of the country. In the different scenario, States started taking the initiative in the new and competitive environment and Tamil Nadu was one of the earliest to seize the opportunity and announced its Industrial Policy in 1992 itself. This policy became the cornerstone and laid the foundation for the rapid growth of new industries in the State. This policy became the harbinger of growth that facilitated the electronics and automobile industry revolution in Tamil Nadu by attracting major projects from Industrial giants. These major projects triggered a multiplier effect by attracting a large number of auto and other ancillary industries.

The Policy of the Government has been

To maximize the welfare of the people of Tamil Nadu by creating gainful employment opportunities by achieving higher and sustainable economic growth with emphasis on balanced regional development through greater private and public investment in Manufacturing and infrastructure development.