Kerala Budget Hailed for Investment & Growth Focus

Kochi, Jun 19 (PTI) Industry bodies and business leaders on Friday welcomed the Kerala budget, saying its emphasis on investment, infrastructure, industrial growth and innovation would help accelerate economic development and improve the state's investment climate.

The Federation of Indian Chambers of Commerce and Industry (FICCI) Kerala State Council said the budget would provide a major boost to investment, industry and overall economic growth.

FICCI Kerala State Council Chairman V P Nandakumar, in a statement, said the proposed Mission Samudra project to develop maritime activities was among the most significant announcements in the budget.

He said that Kerala is uniquely positioned to leverage its coastline for economic growth.

"The allocation for Mission Samudra and the focus on ports, logistics and maritime development can transform Kerala into an integrated port economy. Along with proposals such as the Aviation Hub, Kerala Knowledge Valley and the Health and Life Science City, this Budget has the potential to accelerate investments in key sectors," he said.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) Kerala State Council described the Budget as a forward-looking roadmap aimed at transforming Kerala into a knowledge-driven and globally competitive economy.

ASSOCHAM Kerala State Council Chairman Raja Sethunath said the proposals reflected a long-term vision for economic development.

"The emphasis on infrastructure development, logistics, maritime economy, renewable energy, skill development, future technologies and startups represents a significant step towards sustainable growth. Though fiscal challenges remain, this vision can be realised through financial discipline, public-private partnerships and accelerated private-sector investment," he said.

The All Kerala Gold and Silver Merchants Association (AKGSMA) welcomed the proposal to establish a Global Gold Hub for jewellery manufacturing through private sector participation.


The association said the Rs 10 crore allocation for the project would create employment opportunities for traditional artisans, strengthen local manufacturing and increase tax revenues.

AKGSMA office-bearers said Kerala, despite being one of the country's largest consumers of gold jewellery, depended largely on ornaments manufactured outside the state.

"The proposed Gold Hub can create major opportunities for traditional workers and local entrepreneurs. We are ready to invest and become partners in the project if the government moves forward with its implementation," the association said.

The Southern India Chamber of Commerce and Industry (SICCI)-Kerala also welcomed the budget.

SICCI Kerala chairman Thomas Nechupadam described it as a "forward-looking" and development-oriented Budget.

According to him, flagship initiatives such as Mission Samudra, Invest Keralam, the Southern Kerala Economic Corridor, the Aviation Hub and the Kerala MSME Growth Scheme have the potential to transform Kerala into a globally competitive investment and business destination.

"The emphasis on ease of doing business, technology adoption, skill development and sector-specific growth will further strengthen the state's economic ecosystem," he said.

Meanwhile, George Alexander Muthoot, Managing Director of Muthoot Finance, said the budget presented a balanced roadmap for long-term economic growth.

"MSMEs remain the backbone of Kerala's economy. Measures aimed at improving their access to capital, markets and growth opportunities will have a significant multiplier effect on employment generation and economic activity. Sustained investments in skills, education, innovation and infrastructure will help build a more competitive and future-ready economy," he said.