Southern Tamil Nadu Trade Bodies Offer Mixed Assessment of Union Budget 2026
Trade and industry organizations across Tamil Nadu's southern districts have expressed divergent reactions to Finance Minister Nirmala Sitharaman's ninth Union Budget, presented on Sunday. While certain infrastructure initiatives received praise, multiple business leaders voiced disappointment over the absence of specific allocations for Tamil Nadu's development projects.
Tamil Nadu Chamber Criticizes Budget as "Ordinary"
Tamil Nadu Chamber of Commerce and Industry president N Jegatheesan characterized the budget as "ordinary" while acknowledging some positive elements. The chamber welcomed the announcement of seven high-speed rail corridors, including two routes connecting Chennai, which could enhance regional connectivity. Jegatheesan also appreciated the government's commitment to reducing the fiscal deficit to 4.3% of GDP.
However, he expressed significant disappointment at the lack of specific announcements for Tamil Nadu's infrastructure needs. Key projects that received no mention in the budget include:
- Metro rail expansion in major cities
- Development of integrated bus ports
- Airport runway expansion projects
"Ultimately, the Union budget disappointed, falling short of the hopes of the trade and industry sector," Jegatheesan stated, summarizing the chamber's overall assessment.
Agricultural and Tourism Sectors Receive Varied Responses
Agri and All Trader Chamber president S Rethinavelu offered a more positive perspective, particularly regarding the budget's focus on tourism as a central employment and growth strategy. He highlighted several promising initiatives:
- A pilot scheme for upskilling 10,000 tourist guides through 12-week training programs at 20 iconic sites, developed in collaboration with Indian Institutes of Management
- Promotion of India as a medical tourism hub through five regional medical centers
- Concentration on high-value crops to diversify agricultural outputs and increase farmer incomes
Rethinavelu termed these measures "highly laudable" and "innovative," though he noted disappointment that Madurai was not included among the 18 tourism cities recommended for direct flight connections to all ten ASEAN countries.
MSME Sector Welcomes Support Measures
The Madurai District Tiny and Small Scale Industries Association (MADITSSIA) responded favorably to several budget announcements targeting micro, small, and medium enterprises. Association president V Senthilkumar welcomed:
- A Rs 10,000 crore growth fund for SME development
- Simplification of GST procedures for tiny industries
- The 'Champion MSME' support scheme
- Reduced corporate tax for companies with turnover below Rs 50 crore
Senthilkumar also praised the Rs 5,000 crore allocation to boost tourism income from temple towns, funds to encourage research in traditional medicine, and specific allocations to develop trekking infrastructure in the Pothigai Hills region.
However, he noted the absence of any announcement regarding the proposed Madurai-Tuticorin Industrial Corridor as a significant missed opportunity for regional industrial development.
Farmers Express Disappointment
Representing agricultural interests, Tamil Nadu All Farmers Associations Coordination Committee honorary president M P Raman termed the budget "a disappointment for farmers." His primary criticism focused on the government's failure to announce any enhancements to Minimum Support Price (MSP) mechanisms for agricultural produce, which remains a critical concern for farming communities across the state.
The varied responses from Tamil Nadu's business and agricultural communities reflect the complex challenges of balancing national economic priorities with regional development needs in a diverse federal system.
