Micro, small and medium enterprises in Coimbatore and Tiruppur have welcomed the Union Budget 2026's emphasis on their sector but expressed disappointment over the lack of measures to tackle raw material challenges and rising costs.
The Union Budget 2026 has received mixed reactions from the MSME sector in Coimbatore and Tiruppur. While industry leaders praise the increased public capital expenditure of ₹12.2 lakh crore and investments in logistics and urban infrastructure, they lament the absence of solutions for escalating raw material prices and operational expenses.
Rajesh Doraiswamy, chairman of the Confederation of Indian Industry in Coimbatore, noted that these allocations "will catalyse private investment and employment generation." Similarly, Rajesh B. Lund, president of the Indian Chamber of Commerce and Industry, Coimbatore, welcomed the infrastructure focus but pointed out that the budget "did not encourage private investors in the capital market."
Gopalakrishnan, regional chairman of the Federation of Indian Export Organisations, Southern Region, highlighted how the budget places MSMEs at the center of growth, offering incentives to textiles, leather, cashew, and marine sectors to boost southern exporters. M. Karthikeyan, president of the Coimbatore District Small Industries Association, appreciated efforts to scale manufacturing in seven strategic sectors and rejuvenate industrial clusters.
However, concerns persist. Mithun Ramdass, president of the Southern India Engineering Manufacturers Association, said the budget "should have spoken about steps to control the raw material prices." B. Sabarinath from the Coimbatore Jewellers Association reported a 75% business drop due to spiralling gold prices, suggesting reductions in import duties. S. Surulivel of the Railway Equipment Suppliers Association criticized the lack of solutions for rising operational costs.
Associations like the Tamil Nadu Association of Cottage and Tiny Enterprises and the Coimbatore Tiruppur District Tiny and Micro Enterprises Association called the budget disappointing for ignoring micro sector needs in raw materials and finance. On a positive note, the Laghu Udyog Bharati welcomed linkages of the Trade Receivables Discounting System to the GeM portal and credit support. The Tamil Nadu Electricity Consumers Association noted duty exemptions for solar panel materials but urged stable power tariffs.
