Madurai is promoted as a tier II city for IT and Industry. Kappalur which is sub-urban of Madurai is business hub for automotive industries such as KUN BMW, Isuzu, Volkswagen, Toyota, Mahindra, Tata, Maruti Suzuki, Mitsubishi, Ashok Leyland, Jeep, Fiat India (FCA). The government has created Utchapatti-Thoppur satellite Township in Kappalur. Small Industries Development Corporation Kappalur has many polymer and houseware manufacturing units.some software companies have opened their offices in Madurai. 

Software Technology Parks of India, an agency of the Government of India, has authorised several such companies to receive benefits under its national information technology development program.