Tamil Nadu Chief Minister C. Joseph Vijay pushed for fair treatment of southern states at the 31st Southern Zonal Council meeting on August 20, 2026, in Mamallapuram. Union Home Minister Amit Shah led discussions on the economic contributions of these states and the need for equitable fiscal policies.
Vijay stressed the importance of southern states in driving India's economy, advocating for a fiscal framework that rewards both need and performance. He argued that states showing fiscal discipline should not be penalized in Finance Commission talks.
“We seek not preferential treatment but a system that respects our fiscal autonomy and rewards performance, ” Vijay said. He noted the loss of flexible revenue sources since GST's introduction, urging states to reclaim control over tax rates as per Article 279A(4)(e) of the Constitution.
The meeting also addressed inter-state water issues. Vijay emphasized protecting lower riparian states' rights and ensuring livelihoods dependent on river flows, advocating for adherence to Supreme Court judgments and tribunal awards on shared rivers.
On the Cauvery water dispute, he called for adherence to Supreme Court directives and the Cauvery Water Management Authority's decisions. Regarding the Mullai Periyar dam, he stressed safety measures must align with judicial decisions.
“If we approach these issues with mutual trust, scientific evidence, and respect for the law, we can protect the interests of every riparian state, ” Vijay remarked.
Vijay proposed that southern states unite to create integrated economic and logistics clusters. He highlighted interconnected manufacturing and service sectors that could form globally competitive value chains.
“Our industrial strengths complement one another, ” he said, suggesting shared logistics parks and freight corridors to connect production centers to ports, which would attract foreign investment and promote regional growth.
He cited the planned Bengaluru Metro extension from Bommasandra in Karnataka to Hosur in Tamil Nadu as an example of interstate cooperation, linking Bengaluru’s Electronic City with Hosur’s industrial hub to foster economic integration.
“Let this be the first of many such connections across the South, ” Vijay urged, calling for quick action from state and central governments to move this forward.
Other southern leaders like D. K. Shivakumar from Karnataka, V. D. Satheesan from Kerala, Mallu Bhatti Vikramarka from Telangana, and Chandrababu Naidu from Andhra Pradesh attended, highlighting the importance of collaboration to tackle shared challenges and opportunities.
