Industry forums in Kerala welcome development proposals in Union Budget

Industrial forums in Kerala have welcomed the Union Budget 2026-27, presented by Finance Minister Niramala Sitharaman on Sunday, hailing what they find proposals aiming development of key sectors.

The Federation of Indian Chambers of Commerce and Industry (FICCI) Kerala State Council said the Budget has focussed on the comprehensive growth of key sectors. The projects for processing critical minerals, setting up of special chemical corridors, schemes for manufacturing electronic components and textile parks are commendable, (FICCI) Kerala State Council chairman V.P. Nandakumar said.

‘Growth-oriented’

The Indian Chamber of Commerce & Industry, Cochin (ICCI) welcomed the Budget, calling it growth-oriented, reform-focused, and aligned with the country’s long-term development goals.

Rajkumar Gupta, president, ICCI Cochin-2, said the strong push for manufacturing, with ₹10,000 crore for bio-pharma, ₹40,000 crore for electronic component manufacturing, and ₹10,000 crore for SMEs, alongside continued emphasis on semiconductors and strategic rare earth magnet corridors will be benefiting Kerala. The Chamber also highlighted five regional medical tourism hubs and dedicated schemes for coconut and sandalwood production as regionally significant measures.

Vinodini Sukumar, president of the Cochin Chamber of Commerce & Industry, said the Budget focusses on manufacturing and IT sectors which can be a big impetus to Kerala too. “The establishment of rare earth corridor which also found place in the State Budget sends a right signal,” she said. Ms. Sukumar also welcomed the support to export of Ayurveda medicines.

Vivek Krishna Govind, president, TiE Kerala, said the Budget focused on simplifying tax framework with the government introducing several measures aimed at reducing compliance burden and litigation. “The announcements regarding foreign asset disclosure for small taxpayers and decriminalisation of procedural lapses is a step in the right direction. The Budget delivers a significant overhaul of the customs framework, streamlining procedures and rationalising provisions across the trade ecosystem,” he said.

‘Disappointing for fishers’

Kerala Matsya Thozhilali Aikya Vedi meanwhile termed the Budget disappointing for the fishing community.

“The Budget contains proposals that surrender the fisheries sector to monopolies.“ It said the proposals aligned with the government’s Gazette notification allowing fishing close to 12 nautical miles off the sea. “Since fish stock is less in deep sea, all vessels will come close to the coastal sea. This will wreck the small and traditional fisheries sector,” Charles George, president, Aikya Vedi, said.