Sat Feb 01 18:23:59 UTC 2025: ## Tamil Nadu Businesses Hail Union Budget 2025-2026

**Chennai, February 1, 2025** – Leading industrialists and chambers of commerce in Tamil Nadu have lauded the Union Budget 2025-2026, presented by Finance Minister Nirmala Sitharaman on Saturday. The budget was praised for its focus on boosting MSMEs, promoting electric vehicle production, and fostering economic growth while maintaining fiscal discipline.

Key highlights welcomed by Tamil Nadu’s business community include:

* **MSME support:** Increased investment and turnover limits for MSMEs, a new credit card scheme for micro enterprises, and a new loan scheme for first-time entrepreneurs (particularly women, SC, and ST individuals) offering up to ₹2 crore in term loans. This is expected to empower 5 lakh new businesses over five years.
* **Automotive and manufacturing growth:** Initiatives to enhance electric vehicle and mobile phone battery manufacturing are expected to significantly benefit Tamil Nadu’s robust auto and auto-ancillary sector, creating numerous jobs. The footwear and leather industry is also poised for growth due to increased investment and exports.
* **Fiscal responsibility:** The fiscal discipline demonstrated, with a decreasing fiscal deficit without increased borrowing, was widely commended.
* **Infrastructure and ease of doing business:** Significant announcements related to infrastructure development, streamlining business processes, rationalizing tax structures, and improving transport connectivity were also highlighted as positive aspects of the budget.

While the expanded criteria for MSME classification was welcomed, some expressed concern that it might disadvantage micro industries by allowing larger companies to access benefits intended for smaller businesses. Despite this, the overall sentiment was overwhelmingly positive, with the budget seen as a timely and balanced approach to stimulating economic growth and attracting foreign investment.

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