The textile industry in Coimbatore and Tiruppur districts has welcomed the Budget presented by the State’s Finance Minister on Wednesday saying the announcements are expected to trigger investments.Chairman of the Southern India Mills Association Durai Palanisamy said allocation of ₹1,678 crore for Handlooms and Textiles, ₹ 2,022 crore for Labour Welfare and Skill Development and ₹ 4,414 crore for the Industries Department will provide an impetus to the industries to attract investments.Announcements related to Textile Technology Centre, Technical Textiles Transformation Scheme, and Tamil Nadu Institute of Designs, and Loom Modernisation scheme will benefit the textile and apparel industry, he said.‘Progressive Budget’A. Sakthivel, chairman of the Apparel Export Promotion Council, said the Budget is progressive with a definite roadmap for industrial development. A new Industrial Policy, T.N. Single Window 3.0, expansion of SIPCOT industrial parks with an allocation of ₹3,500 crore, strengthening the MSME sector with ₹ 2,142 crore, and ₹1,678 crore for textile sector will significantly improve the ease of doing business, attract investments, strengthen manufacturing and enhance export competitiveness.President of the Tiruppur Exporters’ Association K.M. Subramanian said the announcement of establishing a Textiles Technology Centre in Tiruppur will strengthen the competitiveness of the garment industry in the district. The other announcements related to industries and infrastructure will promote investments, he said.P. Shanmugasundaram, president of the South India Hosiery Manufacturers’ Association, said the allocation for the textile and MSME sectors is expected to generate employment and promote investments.The South India Spinners’ Association president R. Arun Karthik said the announcements for the power sector, which is one of the largest input costs for manufacturing industries, will improve the reliability of electricity supply, promote greater adoption of green energy, and contribute significantly to the sustainable growth of industries in the long term.Jayabal, State general secretary of the Tamil Nadu All Entrepreneurs’ Federation and president of the Recycle Textile Federation, said the Budget did not address the demands of the State’s 4.8 million MSME entrepreneurs on 50% reduction in fixed charges (which have increased by nearly 480 %) and waiver of solar network charges. These measures were among the commitments made during the election campaign, he said.The Open End Spinning Mills Association Tamil Nadu has welcomed the Government’s “major infrastructure and industrial development initiatives”. These investments will strengthen Tamil Nadu’s industrial infrastructure, improve power availability, attract new investments, and enhance the competitiveness of the textile industry, said the association president G. Arulmozhi.However, the long-pending demand of the textile industry to reduce the fixed charges for LT & CT and HT electricity service connections has not been addressed in the Budget.The Tamilnadu Weavers Association’s Federation said allocation of ₹1678 crore for the textile industry is a welcome measure. Published - August 05, 2026 08:34 pm IST