D. Karthikeyan, CMD, TIDCO, speaking at the CII TN DEF X Conclave 2026 in Chennai.
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Tamil Nadu is stepping up efforts to establish itself as a major defence and aerospace manufacturing hub, and we invite industries, startups and MSMEs to tap into the projected ₹3-lakh crore defence production opportunity in India by 2029, said D Karthikeyan, Chairman and Managing Director, Tamil Nadu Industrial Development Corporation (TIDCO).Speaking at CII TN DEF X Conclave 2026, he said the State was creating the infrastructure, testing facilities and funding ecosystem needed to support companies entering the defence sector.The Centre had identified Tamil Nadu as one of the key partners in India’s defence manufacturing ecosystem. The State government was working closely with the Ministry of Defence, DRDO, ISRO and industry to build indigenous capabilities, he said.TIDCO’s ₹100-crore venture capital fund, which has already invested in two companies, has nearly 40 applications currently under evaluation, he noted. Individual investments of up to ₹25 crore can be made under this fund.V Vinayagam, Senior Vice President, TIDCO, said the state is positioning itself to capitalise on India’s rapidly expanding defence sector, which is projected to achieve ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029. India’s defence exports have already crossed ₹38,000 crore, while the Union Defence Budget for 2025-26 stands at ₹6.81 lakh crore.Tamil Nadu is banking on the upcoming Kulasekarapattinam Spaceport, ISRO’s second launch facility, supported by a space industrial park, satellite assembly, Integration and Testing (AIT) facilities and a Propellants Park. Officials estimate that the State could secure nearly $15 billion of the global space manufacturing opportunity, said Vinaygam.Tamil Nadu’s existing defence ecosystem comprises five Defence Public Sector Undertakings (DPSUs), over 700 aerospace and defence component suppliers, more than 300 defence companies, besides multiple Army, Navy, Air Force and Coast Guard establishments.The state is expanding beyond its existing five corridor nodes—Chennai, Hosur, Coimbatore, Salem and Tiruchirappalli—with Madurai and Thoothukudi emerging as new growth centres, he said.Chennai focuses on avionics, radar systems and shipbuilding; Hosur on aircraft maintenance and aero-engines; Coimbatore on MRO and precision manufacturing; Salem on heavy engineering and ammunition; Tiruchirappalli on fabrication and electronics, while Thoothukudi is being developed as the state’s space manufacturing hub.Infra under developmentTamil Nadu is also developing a network of specialised industrial parks and common infrastructure. These include the Varapatti Defence Industrial Park, Sulur Aerospace Park, Space Industrial Park, Propellants Park at Thoothukudi and the Aero Hub at Vallam Vadagal.The State is also investing in shared facilities such as the ₹100-crore Trichy Engineering and Technology Cluster (TREAT), which provides advanced manufacturing equipment to MSMEs on a pay-per-use basis, and the ₹400-crore TN ENGINE Centre being established in partnership with Tata Technologies at Coimbatore for design, simulation and engineering validation, he said.Published on June 30, 2026
