Mixed reaction to Budget from industries, sectors in southern districts

The Union Budget, submitted by Nirmala Sitharaman on Sunday, has evoked mixed feedback from stakeholders and the public across South India.

Terming the Budget a ‘new generation hi-tech Budget packed with highly innovative schemes,’ Agri and All Trader Chamber has congratulated the officials and Ministry for choosing a slightly different path in submitting a technology-driven Budget with sops for all. “It has placed tourism at the centre of its employment and growth strategy. It is a proactive step to set up a National institute of Hospitality to work closely with academia, industry and government to improve training and standards in hospitality,” said S. Rethinavelu, founder-president of the Chamber.

The proposal to set up a pilot scheme for upskilling 10,000 guides in 20 iconic tourist sites through a high-quality 12-week training course, in collaboration with the IIM, would certainly give a boost to tourism, he added. 

Similarly, the proposal to promote India as a hub for medical tourism services, by establishing five Regional Medical Hubs, in partnership with the private sector, was highly laudable, he said, adding, “The chamber was very much confident that Tamil Nadu would be one such medical hub.”

‘Largely ordinary’

Tamil Nadu Chamber of Commerce and Industry, however, criticised the financial document as largely ordinary, without any new policies. A statement said the announcements such as establishment of women’s hostel in every district, a Central Cultural Centre at Adichanallur, development of 20 new inland waterways over the next five years to raise domestic waterway transport from the current 6% to 12%, reducing TCS on foreign tour packages to 2%, allocating ₹10,000 crore for the development of micro and small-scale enterprises, introducing ‘Content Creation Lab’ in 15,000 schools and 2,000 colleges, and reducing custom duties on 17 types of cancer drugs, were all seem to be regular budgetary announcements.

“With the Assembly elections nearing, it is disappointing to note that there are no specific announcements for the State in this year’s Budget. Long-awaited projects such as Madurai Metro Rail, Bus Port, National Institute of Pharmaceutical Education and Research, and Madurai Airport runway expansion have not been mentioned, nor has any fund allocation made for them,” it added.  

Sourashtra Chamber of Commerce said the Budget appeared to be centered around technology and defence sectors, keeping the future welfare of the nation in mind.

“Allocation of ₹40,000 crore for semiconductor production and simplification of procedures to start manufacturing businesses and up to ₹2 lakh crore for development of MSMEs are seen as significant announcements to prioritise and boost manufacturing sectors,” it added.

Madurai District Tiny and Small-Scale Industries Association, in a statement, criticised the Budget for not announcing anything on Madurai-Tuticorin Industrial Corridor.

“The request to extend the IID scheme, which is now only for old industrial estates, to new industrial estates was not addressed. Following the announcement of GST 2.0, no announcement was made regarding claiming ITC (Input Tax Credit) for machinery in MSMEs. Similarly, there was no announcement regarding conversion of Madurai airport into an international airport,” it added.

The Chamber welcomed allocation of a growth fund of ₹10,000 crore for the development of MSMEs and a risk capital fund of ₹2,000 crore to ensure availability of capital for the development of tiny industries.

Farmers Association leader M.P. Raman opposed the announcement for the establishment of dedicated Rare Earth Corridors in Tamil Nadu for promoting mining, processing, research and manufacturing. He said the announcement had exacerbated their fears of losing their lands and houses to such project.

Also, absence of announcement on Minimum Support Price for the farmers produce was another huge disappointment to the farming community, he stated.

“The Budget continues the exclusionary trajectory of the Modi government in its third term, reflecting a clear pro-corporate and pro-rich bias that deepens inequality and marginalisation. For persons with disabilities, this Budget represents not neglect but an active denial of rights,” said the National Platform for the Rights of the Disabled (NPRD).

It further said the Divyangjan Kaushal Yojana was merely another iteration of ineffective skill-training schemes that had failed to generate employment for disabled persons. Funds largely flow to training agencies, with little evidence of meaningful skill development or job placement, it added.

The Budget failed to protect the livelihoods of traditional fishermen. Instead, under the guise of the ‘Blue Economy,’ it serves as a blueprint to hand over the deep seas to corporate entities, said the All India Trade Union Congress’s (AITUC)’s Fishermen Association. In a statement, it said tax concessions granted to large corporations in deep-sea fishing sector and permission to sell fish directly at foreign ports were dangerous decisions.

Published – February 01, 2026 09:19 pm IST