The Tamil Nadu Budget 2025 has introduced several initiatives aimed at strengthening industries in Coimbatore, particularly in the pump, foundry, and semiconductor sectors. These measures are expected to drive economic growth and enhance the region’s industrial competitiveness.
Key Announcements for Coimbatore’s Industries
Centre of Excellence for Pump & Motor Technologies
The Coimbatore District Small Industries Association (CODISSIA) has welcomed the announcement of a Centre of Excellence for Advanced Pump & Motor Technologies in Coimbatore. This initiative is expected to boost research, development, and manufacturing efficiency in the sector.
Semiconductor Manufacturing Parks
Plans to develop 100-acre semiconductor parks in Sulur and Palladam in collaboration with the US, Singapore, Malaysia, and Taiwan have been praised as a significant step toward high-tech manufacturing in Tamil Nadu.
Expansion of Industrial Estates & MSME Support
- ₹366 crore allocated for nine new industrial estates under SIDCO
- ₹2.5 lakh crore bank loans for MSMEs to aid small and medium enterprises
Industry Perspectives
Pump & Foundry Industry
The Southern India Engineering Manufacturers’ Association (SIEMA) highlighted the importance of research and development in making Coimbatore a global hub for pumps and motors. The replacement of inefficient pumps worth ₹675 crore and the ₹6,500 crore Combined Water Supply Scheme will further boost demand in the pump and foundry sectors.
The Indian Pump Manufacturers’ Association (IPMA) expressed optimism that the centre of excellence will help produce high-value pumps, solidifying Coimbatore’s reputation as the Pump City of the World.
Infrastructure & MSME Development
The Indian Chamber of Commerce and Industry, Coimbatore, welcomed plans to establish an industrial training centre and introduce 75 electric buses in the district.
However, the Tamil Nadu Association of Cottage and Tiny Enterprises and the Coimbatore Tirupur District Micro and Cottage Enterprises Association were disappointed by the lack of a dedicated industrial estate for micro units and no reduction in electricity charges.
Textile & Garment Sector
The Powerloom Development and Export Promotion Council welcomed the ₹1,980 crore allocation for handlooms and textiles, including:
- ₹30 crore to modernize powerlooms
- ₹20 crore for infrastructure in powerloom clusters
However, Tiruppur-based associations were disappointed with no incentives for cotton development or power tariff reductions.
While the budget has introduced key industrial growth measures, industry bodies have pointed out the need for additional support for MSMEs, power reforms, and textile sector development. Future policies must address these concerns to ensure sustained industrial progress in Coimbatore.
