Industry and professional forums have mostly welcomed the State Budget 2026-27 presented by Finance Minister KN Balagopal on Thursday, January 29, 2026, even as part of it raised concerns about fund mobilization.
The Kerala State Council of the Federation of Indian Chambers of Commerce and Industry (FICCI) welcomed the budget, saying it lays great emphasis on social development as well as infrastructure and industries.
FICCI Kerala State Council Chairman VP Nandakumar has welcomed the allocation of ₹5,217 crore for the development of the MC road from Thiruvananthapuram to Angamaly, the proposed Regional Rapid Transit System (RRTS) and the rare earth corridor as infrastructure projects that can significantly boost the state’s economy.
TiE Kerala, the state branch of the non-profit, global incubation and funding community, flagged the allocations in the right direction, though it expressed doubts about fund mobilization. “In an election year, the allocation of substantial funds for infrastructure, technology, welfare, healthcare and education is definitely a step in the right direction, but the main question is whether the government can mobilize the funds to implement these ambitious projects and programmes,” said Vivek Krishna Govind, President, TiE Kerala.
Meanwhile, the Kerala Merchants Chamber of Commerce (KMCC) said the budget completely ignores the trade and commerce sector. “By increasing license fees and registration fees and strengthening inspections, the concept of ease of doing business has been reduced to mere words,” said VE Anvar, general secretary, KMCC.
K Harikumar, president of the Kerala Management Association, called the budget welfare-oriented.
“The proposed tax exemption up to ₹50,000 will offer meaningful relief to small taxpayers, reflecting the government’s intention to reduce the burden, especially on the SME sector. The focus on healthcare is also welcome,” he said. However, according to him, the key challenge for the next government will be the mobilization of adequate financial resources.
The Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) said the budget has given due consideration to the demands raised by the trader community. “The announcement that General Amnesty 2025 and Flood Cess Amnesty 2025 will continue with additional benefits offers tremendous confidence to the community,” said Raju Apsara, President, KVVES.
Kerala State Small Industries Association has welcomed the allocation of ₹ 310.84 crore for MSMEs.
The state unit of the All India Professionals Congress (AIPC) said the budget has disappointed professionals and the youth. “The reduction in allocation for the Kerala Startup Mission reflects the lack of far-sighted vision of the government. The allocations of ₹ 25 crore for Technopark and ₹ 21 crore for Infopark are not enough to meet even the basic requirements,” said Ranjith Balan, state president, AIPC.
Published – 29 Jan 2026 21:11 IST
