Finance Minister Nirmala Sitharaman presents the Union Budget 2026-2027 in the Lok Sabha in New Delhi on February 1, 2026. | Photo credit: PTI
Industry forums in Kerala welcomed the Union Budget 2026-27 presented by Finance Minister Niramala Sitharaman on Sunday and welcomed the proposals which they said have development of key sectors.
The Federation of Indian Chambers of Commerce and Industry (FICCI) Kerala State Council said the budget focuses on comprehensive growth of key sectors. Projects for processing critical minerals, setting up special chemical corridors, schemes for manufacturing electronic components and textile parks are laudable, said Kerala State Industrial Council (FICCI) president VP Nandakumar.
‘growth oriented’
The Cochin Chamber of Commerce and Industry of India (ICCI) welcomed the budget, describing it as growth-oriented, reform-oriented and in line with the country’s long-term development goals.
Rajkumar Gupta, president, ICCI Cochin-2, said a strong manufacturing push with ₹10,000 crore for bio-pharma, ₹40,000 crore for electronic component manufacturing and ₹10,000 crore for small and medium enterprises, along with continued emphasis on semiconductors and strategic rare earth magnet corridors will be beneficial. The chamber also highlighted five regional medical tourism centers and dedicated coconut and sandalwood production programs as regionally significant measures.
Vinodini Sukumar, president, Cochin Chamber of Commerce & Industry, said the budget focuses on manufacturing and IT sectors, which can be a big boost for Kerala as well. “The establishment of the rare earth corridor, which also found a place in the state budget, sends the right signal,” she said. Ms. Sukumar also welcomed the support for the export of Ayurvedic medicines.
Vivek Krishna Govind, president of TiE Kerala, said the budget focused on simplifying the tax framework, with the government introducing several measures aimed at reducing the burden of compliance and litigation. “The announcement regarding making foreign assets accessible to small taxpayers and decriminalizing procedural loopholes is a step in the right direction. The budget brings a significant overhaul of the customs framework, streamlining procedures and rationalizing provisions across the business ecosystem,” he said.
“Disappointment for fishermen”
Meanwhile, Kerala Matsya Thozhilali Aikya Vedi termed the budget as a disappointment for the fishing community.
“The budget contains proposals that hand the fishing industry over to monopolies.” It said the proposals were in line with a government gazette notification allowing fishing within 12 nautical miles of the sea. “Since the fish population is smaller in the deep sea, all the vessels will come closer to the coastal sea. This will destroy the small and traditional fishing sector,” said Charles George, president of Aikya Vedi.
Meanwhile, the Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) criticized the budget, saying it completely ignored the state and did not address the key concerns faced by small industrialists. “Instead of taking measures to regulate global monopolies and e-commerce, the budget coddled corporations. It ignored Kerala by not announcing any major project for its economic growth,” said Raju Apsara, state president, KVVES.
Published – 1 Feb 2026 21:06 IST