Union Finance Minister Nirmala Sitharaman has asserted that the upcoming Tamil Nadu elections will be a "strong fight," suggesting that the ruling DMK party is feeling "nervous". Sitharaman's comments come amidst heightened political activity in the state, including the entry of actor Vijay into politics, which she believes has stirred significant interest and unsettled the DMK.

Sitharaman has also criticized the INDI Alliance, questioning the Congress party's commitment and direction in Tamil Nadu. She raised concerns about the alliance's stability, asking why there is hesitation to continue after five years in power together. She has also alleged governance failures by the ruling state coalition, including issues related to law and order, drug trafficking, crimes against Scheduled Castes and women, and the safety of university campuses.

In the Union Budget 2026, Sitharaman unveiled special measures for poll-bound states, including Tamil Nadu. The budget includes proposals to establish rare earth mineral corridors in Tamil Nadu, Odisha, Andhra Pradesh, and Kerala, focusing on mining, processing, research, and manufacturing. Additionally, the budget proposes seven high-speed rail corridors, including the Hyderabad-Chennai corridor, which will benefit Tamil Nadu. These initiatives aim to strengthen India's capabilities in the critical rare earth sector and improve connectivity in the region.

The Finance Minister also wore a Tamil Nadu handwoven maroon Kanjeevaram saree during the budget presentation, seen by some as a visual cue and policy messaging. While the DMK has pushed back against the budget, claiming it lacks focus on Tamil Nadu, a closer look reveals that the state has received significant attention in the budget proposals.

Sitharaman's remarks and the budget proposals indicate a strategic focus on Tamil Nadu, where the BJP aims to make a significant impact in the upcoming elections. The emphasis on infrastructure projects, resource development, and addressing governance issues reflects the BJP's approach to appealing to voters in the state. The political landscape in Tamil Nadu is expected to be closely contested, with the entry of new players and shifting alliances adding complexity to the electoral dynamics.