The State government’s 2026–27 Budget drew mixed reactions in Erode, with industry bodies welcoming measures for the micro, small and medium enterprises (MSME) sector while expressing disappointment over the omission of several long-pending demands. Some residents also said key election promises had not found a place in the Budget.The Erode District Small Industries Association (EEDISSIA) welcomed the Budget, saying the removal of unnecessary eligibility criteria in government tenders would enable MSMEs to participate more effectively in public procurement and create new business opportunities.Higher allocation for roads and infrastructureIn a statement, its president P. Kandasamy said the higher allocation for roads and infrastructure would attract fresh industrial investments, encourage new industries and generate employment. Welcoming the government’s vision of making Tamil Nadu a $1.5-trillion economy by 2036, he expressed hope that further measures, including capital subsidies, technology upgradation assistance, electricity tariff concessions, export incentives and grants for district-level industrial exhibitions, would be announced to strengthen the MSME sector.However, V.K. Rajamanickam, president of the Federation of All Trade and Industry Associations of Erode District (FATIA), said the Budget had failed to address several key demands of industries in the district. He said the federation had sought higher allocations for environmental protection to help textile, tannery and other industries implement pollution-control measures. It had also sought a cold storage facility, greater support for the textile sector and infrastructure projects for Erode, but no announcements had been made. While welcoming the government’s thrust on rooftop solar power, he expressed disappointment that network charges for rooftop solar consumers had not been withdrawn. He, however, welcomed the higher allocation for the education sector.Among residents, M. Guruprasana of Solar said he was disappointed that the Budget did not include the promised supply of six free LPG cylinders. Kamalam of Kollampalayam said there was no announcement on increasing the monthly assistance for women to ₹2,500 or extending free bus travel across the State. She added that the Budget had also failed to address the rising prices of essential commodities and had not lived up to public expectations. Published - August 05, 2026 07:14 pm IST