The Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore and Tiruppur have welcomed the thrust on MSMEs in the Union Budget. However, there is no measure to address the challenges the MSMEs face on the raw material front, they say.
Rajesh Doraiswamy, chairman of the Confederation of Indian Industry, Coimbatore, said the public capital expenditure of ₹12.2 lakh crore and investment in logistics and urban infrastructure will catalyse private investment and employment generation.
The Indian Chamber of Commerce and Industry, Coimbatore, president Rajesh B. Lund said the focus on infrastructure was a welcome move. However, the Budget did not encourage private investors in the capital market.
By placing MSMEs at the centre of economic growth and extending incentives to key sectors such as textiles and leather, cashew, and marine, the Budget will empower exporters in the southern region to scale up and innovate, said, Gopalakrishnan, regional chairman, Federation of Indian Export Organisations (FIEO), Southern Region.
M. Karthikeyan, president of the Coimbatore District Small Industries Association, said measures to encourage scaling up manufacturing in seven strategic sectors, rejuvenating legacy industrial clusters, creating champion SMEs, providing a push to infrastructure development, ensuring long-term security and stability and developing economic regions in the city as engines of growth were all welcome measures.
The Southern India Engineering Manufacturers Association president, Mithun Ramdass, said while the Budget has several welcome measures, it should have spoken about steps to control the raw material prices.
According to the Laghu Udyog Bharati, its key demands were addressed in the Budget. This included linking of the Trade Receivables Discounting System (TReDS) to the GeM portal and credit support for the MSMEs.
B. Sabarinath, president of the Coimbatore Jewellers Association, said the spiralling gold prices have resulted in almost 75% drop in business. Reduction of gold import prices would have helped control the prices.
The Railway Equipment Suppliers Association president, S. Surulivel, said the Budget failed to provide solutions for the rising operational costs that the MSMEs faced.
The Coimbatore Compressor Industries Association president, M. Raveendran, said the Budget aims to strengthen the manufacturing, MSMEs, and legacy clusters and has increased the allocation for the sector that is expected to benefit the MSMEs.
The Tamil Nadu Association of Cottage and Tiny Enterprises president, J. James, said the Budget is disappointing as it does not address the challenges faced by the micro sector regarding raw materials and finance.
According to C. Sivakumar, president of the Coimbatore Tiruppur District Tiny and Micro Enterprises Association, the Budget is disappointing because it does not have steps to control the prices of raw materials or address the financial needs of the micro units.
M.P. Muthurathinam, president of the Tiruppur Exporters and Manufacturers Association, said the Budget did not have adequate fund allocation or measures to resolve the issues faced by the MSMEs.
According to G. Karthikeyan, president of the Start Up Academy, the Budget has aimed to instil confidence for inducing private investments in the form measures for ease of doing business. The rationalisation of tax deducted at source (TDS) rates, simplification of TCS on foreign travels, extending the revised returns to be filed before March 31, and modifications on disclosure of foreign assets and income, will also support growth.
The Tamil Nadu Electricity Consumers Association said the government has given basic duty exemption on imports for nuclear projects and on sodium antimonate, a key material for solar panel manufacturing. It should also ensure stable power tariffs and grid stability.
Published – February 01, 2026 10:59 pm IST
