Budget supports MSME-led growth, say textile, allied industrial bodies in Coimbatore and Tirupur

Coimbatore: Textile and allied industrial bodies in Coimbatore and Tirupur have welcomed the Union Budget, stating it contained measures that could accelerate modernization, improve competitiveness and support MSME-led growth. They, however, flagged unresolved concerns about cotton import duty, taxation and environmental priorities.Southern India Mills Association chairman Durai Palanisamy described the National Fibre Scheme as a major step in strengthening raw material availability and a move towards self-reliance across natural fibres such as silk, wool and jute, along with man-made and new-age fibres. He said the Capital Support Scheme for modernization could help attract investments of $100 billion by 2030. At the same time, he urged the Centre to remove the 11% import duty on cotton, citing quality issues and the need to meet export commitments. Southern India Engineering Manufacturers Association president Mithun Ramdas said the initiatives would support engineering growth and the micro, small and medium enterprises (MSMEs). He welcomed the decision to permit mining of rare earth permanent magnets in states such as Tamil Nadu, stating the same could reduce dependence on China and strengthen domestic supply chains. He also sought recognition for Coimbatore as a key hub to boost local fabrication and heavy engineering. Apparel Export Promotion Council chairman A Sakthivel said the budget measures would enhance the global competitiveness of India's apparel industry, particularly MSMEs. Tirupur Exporters Association president K M Subramanian highlighted the exemption of basic customs duty on textile machinery, including shuttle-less looms, saying the same would lower investment barriers for modernization. However, concerns were raised by several stakeholders. Codissia president M Karthikeyan welcomed the proposal to constitute a high-level committee on banking, saying the same could help bridge MSME funding gaps, but expressed disappointment that the long-pending demand to reduce income tax for partnership firms from 30% to 20% was not addressed. Recycled Textile Federation chairman M Jayapal said the budget was disappointing on key textile issues, especially the continued 11% cotton import duty, which he said restricted access to raw materials at international prices. Tamil Nadu Association of Cottage and Micro Enterprises president James termed the Rs10,000 crore allocation for MSMEs inadequate and called for stronger financial support. Environmentalist Vanitha Mohan said the budget lacked concrete measures on environmental protection, particularly waste management and safeguarding water bodies amid rising pollution. Indian Chamber of Commerce president Rajesh B P Lund said the budget was favourable for long-term growth and economic stability.