Tamil Nadu Budget 2026-27: Erode Reacts
The recently unveiled Tamil Nadu Budget has elicited a mixed response from industry bodies and residents in Erode, with some welcoming the measures for micro, small, and medium enterprises (MSMEs) and others expressing dismay over unfulfilled promises.
MSME Sector Gets a Boost
The Erode District Small Industries Association (EEDISSIA) has lauded the Budget, citing the removal of unnecessary eligibility criteria in government tenders as a significant step forward for MSMEs. According to P. Kandasamy, president of EEDISSIA, this move will enable MSMEs to participate more effectively in public procurement, creating new business opportunities and attracting fresh industrial investments.
A notable increase in allocation for roads and infrastructure has also been welcomed, as it is expected to generate employment and encourage new industries. The government’s vision of making Tamil Nadu a $1.5-trillion economy by 2036 has been praised, with hopes that further measures will be announced to strengthen the MSME sector.
Unmet Demands and Disappointments
However, not all industry bodies are satisfied with the Budget. V.K. Rajamanickam, president of the Federation of All Trade and Industry Associations of Erode District (FATIA), expressed disappointment over the omission of key demands, including higher allocations for environmental protection and a cold storage facility. The lack of support for the textile sector and infrastructure projects for Erode has also been criticized.
While the government’s thrust on rooftop solar power has been appreciated, the failure to withdraw network charges for rooftop solar consumers has been met with disappointment. On the other hand, the increased allocation for the education sector has been welcomed.
Residents have also voiced their discontent, with M. Guruprasana of Solar expressing disappointment over the non-inclusion of the promised supply of six free LPG cylinders. Kamalam of Kollampalayam pointed out that the Budget failed to address the rising prices of essential commodities and did not live up to public expectations, including the monthly assistance for women and free bus travel across the State.
Key Demands Unmet
- Higher allocations for environmental protection
- Cold storage facility
- Support for the textile sector
- Infrastructure projects for Erode
- Supply of six free LPG cylinders
- Monthly assistance for women
- Free bus travel across the State
Source: Original Article


