Kerala Budget 2026-27: industry forums welcome Budget despite concerns over fund mobilisation

Industry and professional forums have mostly welcomed the State Budget for 2026-27 presented by Finance Minister K.N. Balagopal on Thursday (January 29, 2026), even as a section of them raising concerns over fund mobilisation.

The Kerala State Council of the Federation of Indian Chambers of Commerce and Industry (FICCI) welcomed the Budget stating it placed strong emphasis on social development as well as infrastructure and industrial sectors.

FICCI Kerala State Council chairman V. P. Nandakumar hailed the allocation of ₹5,217 crore for the development of the M.C. Road from Thiruvananthapuram to Angamaly, the proposed Regional Rapid Transit System (RRTS) and Rare Earth Corridor as infrastructure projects that can give a major boost to the State’s economy.

TiE Kerala, the State chapter of a non-profit, global community which is into incubating and funding, termed the allocations in the right direction even as expressing doubts over mobilisation of funds. “In an election year, the allocation of significant funds for infrastructure, technology, welfare measures, healthcare and education is definitely a step in the right direction, but the main question is whether the government can mobilise funds for implementing these ambitious projects and programmes,” Vivek Krishna Govind, president, TiE Kerala, said.

The Kerala Merchants Chamber of Commerce (KMCC), meanwhile, said the Budget has totally ignored the trade and commerce sector. “By increasing licence fees and registration charges and strengthening inspections, the concept of ease of doing business has been restricted to just words,” V.E. Anvar, general secretary, KMCC said.

K Harikumar, president, Kerala Management Association, called the Budget welfare-oriented.

“The proposed tax waiver of up to ₹50,000 will offer meaningful relief to small taxpayers, reflecting the government’s intent to ease the burden, especially on the MSME sector. The thrust on healthcare is also welcome,” he said. He, however, said that the key challenge for the next government would be mobilising adequate financial resources.

The Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) said the Budget has given due consideration to the demands raised by the merchants’ community. “The announcement that General Amnesty 2025 and Flood Cess Amnesty 2025 will continue with added benefits offer huge confidence to the community,” Raju Apsara, president, KVVES, said.

The Kerala State Small Industries Association welcomed the allocation of ₹310.84 crore for MSMEs.

The All India Professionals Congress’ (AIPC) State unit said that the Budget disappointed professionals and youth. “The cut in the allocation for the Kerala Startup Mission reflects the government’s lack of farsighted vision. The allocations of ₹25 crore for Technopark and ₹21 crore for Infopark are not adequate to meet even basic requirements,” said Ranjith Balan, State president, AIPC.