Kerala Budget 2025-26: Business Community Hails Focus on Growth & Innovation

Kochi, Feb 7 (PTI) The Kerala Budget for the fiscal year 2025-26, presented by Finance Minister K N Balagopal, on Friday received positive response from the business community, with industry leaders praising its focus on growth, sustainability and innovation.

The Confederation of Indian Industry (CII) Kerala has termed the state budget as visionary, emphasising a balance between growth and sustainability.

"The budget outlines a clear vision for Kerala's growth with significant investments in infrastructure, technology, and sustainability, setting the stage for industrial development and innovation," said Vinod Manjila, Chairman, CII Kerala.

Leveraging the Vizhinjam port to develop the Vizhinjam-Kollam-Punalur Growth Triangle will be a transformative step for the state, he stated.

Other key initiatives, such as the KLICK Portal, new IT parks, and centers of excellence, demonstrate a strong commitment to building a dynamic, future-ready economy, he added.

The proposals in the budget to develop Global Capability Centres (GCCs) and promote fintech enterprises will open up new opportunities for startups, Kerala Startup Mission (KSUM) CEO Anoop Ambika said.

"The budget proposals align well with the state's transition into a knowledge-based economy, a remarkable journey in which the innovation ecosystem is expected to contribute immensely," Anoop added.

The budget has earmarked Rs 517.64 crore for the IT sector.

The budget has also allocated Rs 5 crore for establishing GCC parks including facilitating basic infrastructure and for preparing feasibility reports. An amount of Rs 2 crore has been allocated to conduct an international GCC conclave this year.

Besides, Rs 10 crore has been allocated for KSUM to set up Graphics Processing Units (GPUs) cluster and additional Rs 10 crore has been allotted to the fund-of-funds scheme of KSUM. Also, Rs 90.52 crore has been earmarked in the budget for the various activities of KSUM under Young Entrepreneurship Programme across the state.

Santhosh Babu, Principal Secretary and Managing Director, KFON, said that the allocation of Rs 100 crore for KFON project will be instrumental in driving technological advancements to enhance customer experience and develop sustainable internet schemes for a larger population in Kerala.

The budget announcement is highly anticipated and expected to accelerate the project's implementation. This allocation reinforces the government's commitment to KFON's stated objective: to provide better and more reliable internet connectivity services at the lowest rates across the state, said a release issued by KFON.

Currently, KFON has provided 79,409 connections, including 24,080 government offices, 49,773 commercial connections, 5,236 BPL families, 65 Internet Leased Lines, and 255 SMEs, the release added.

Azad Moopen, Founder and Chairman of Aster DM Healthcare, praised the allocation of Rs 50 crore for health tourism, stating that it would enhance Kerala's position as a global medical tourism hub.

V P Nandakumar, MD and CEO of Manappuram Finance Ltd., lauded the budget for its balanced approach, prioritising healthcare, innovation, agriculture, and sustainability.

"The K-Homes project is a commendable step towards boosting tourism while generating additional income for homeowners. Investments in renewable energy and research will drive growth and innovation. With a strong focus on education and skill development, this budget lays the foundation for long-term economic sustainability. Overall, the budget is a positive step towards inclusive growth and sustainable development," Nandakumar added.