Coimbatore Industry Applauds Tamil Nadu's Interim Budget Initiatives
Industrial organizations in Coimbatore district have expressed strong support for the announcements made by Finance Minister Thangam Thennarasu in Tamil Nadu's interim budget presented on Tuesday. The budget includes significant allocations aimed at boosting industrial growth, supporting small businesses, and developing key infrastructure projects.
Major Budget Allocations for Industrial Development
The first phase of work for a Gold Jewellery Park in Coimbatore district is being undertaken at an estimated cost of ₹81 crore, a move that has been particularly welcomed by local industrial bodies. This development is expected to create new opportunities in the jewelry manufacturing sector and enhance the region's economic profile.
M Karthikeyan, President of CODISSIA, expressed appreciation for several key proposals in the budget. He highlighted the establishment of a 'Fund of Funds' and the allocation of ₹1,943 crore specifically for Micro, Small and Medium Enterprises (MSMEs). These measures are designed to promote entrepreneurship and support industrial expansion across the state.
Infrastructure and Payment System Improvements
Karthikeyan also welcomed the state government's decision to urge the Union government to reconsider and grant early approval for metro rail projects in both Coimbatore and Madurai. Such infrastructure development is seen as crucial for improving connectivity and supporting economic growth in these industrial hubs.
Another significant development praised by industry leaders is the launch of the TN TReDS (Tamil Nadu Trade Receivables Discounting System) platform. This digital system will ensure timely and hassle-free payments to MSMEs by enabling micro and small enterprises to access working capital through discounting their trade receivables. The platform is expected to improve liquidity in the sector and address long-standing payment challenges faced by small businesses.
Industry Associations Seek Additional Support
The Coimbatore Chinnavedampatti Industrial Association (CIA) has urged the state government to provide stronger financial backing for MSMEs in the forthcoming full budget. In a statement, CIA President N Devakumar acknowledged positive developments in the interim budget while calling for additional measures to support industrial growth.
Devakumar specifically appreciated the establishment of skill development centers in government engineering colleges in Coimbatore, Salem, and Tirunelveli, as well as the allocation of ₹374 crore for the development of riverbanks, including the Noyyal river. However, the association has requested further initiatives such as raw material price regulation, enhanced working capital support, and special incentive schemes to be included in the upcoming comprehensive budget.
Textile and Export Sector Initiatives
K M Subramanian, President of the Tirupur Exporters' Association (TEA), welcomed the announcement of steps being taken to establish an advanced quality testing laboratory at an estimated cost of ₹6 crore at the South India Textile Research Association (SITRA) in Coimbatore. This facility will promote high-quality production of sports textiles by enabling advanced testing and quality certification of fabrics, thereby enhancing export competitiveness in the global market.
Dr A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), highlighted the positive impact of the interim budget on the startup ecosystem and export sector. He noted that more than 13,000 startups are currently operating in Tamil Nadu and continue to receive structured financial support, including seed funding.
Sakthivel also welcomed the announcement of a new Shipbuilding Policy aimed at promoting marine manufacturing. SIPCOT, in collaboration with the V O Chidambaranar Port Authority, is set to develop a shipbuilding cluster in Tuticorin, which is expected to open new industrial opportunities and strengthen the export ecosystem in the Coimbatore region.
The collective response from Coimbatore's industrial bodies indicates broad support for the budget's focus on infrastructure development, MSME support, and initiatives to enhance export competitiveness across multiple sectors.
