Union Budget 2026: KCCI flags absence of dedicated Coastal Economic Corridor for West Coast

While the Union Budget 2026 laid a strong national foundation, the absence of a dedicated Coastal Economic Corridor for the West Coast was a significant missed opportunity for Mangaluru and coastal Karnataka, the Mangaluru-based Kanara Chamber of Commerce and Industry (KCCI) has stated.

In a statement on Sunday (February 1, 2026), KCCI President P.B. Ahmed Mudassar said Industry expected targeted fiscal support for the proposed “Silicon Beach” initiative, deeper investment in underutilized deep-water ports, and a mission-mode push for the blue economy to integrate the region more effectively into global supply chains. The exclusion of coastal Karnataka from the proposed high-speed rail growth corridors limits connectivity-led development.

Without focused incentives for technology clusters and port-based industries in Tier-II coastal cities, the region’s strategic potential remains under-leveraged. The government should address this gap in subsequent policy actions, he said.

“Despite strong maritime development support in the Budget, there was no announcement on establishing a Central Maritime University or dedicated maritime higher education institute in Mangaluru, which was a long-standing demand to leverage coastal skills and trade potential. The stakeholders had hoped budgetary backing would formalise maritime education, boost specialised training, and strengthen the city’s role in shipping, logistics and ocean economy sectors,” he said.

Mr. Mudassar added “The Union Budget has proposed a Coconut Promotion Scheme to raise output by replacing old, low-yield trees with improved varieties. A dedicated programme was proposed for cashew and cocoa, to strengthen domestic raw material supply and improve export competitiveness. Unless the arecanut economy was addressed, the overall impact of the measures for the Mangaluru region might remain limited.”

“A tax holiday until 2047 was proposed for foreign firms delivering global cloud services from India-based data centres. This incentivises hyperscale cloud and AI infrastructure investments in India. A Deloitte-KDEM study has identified Mangaluru as highly cost-efficient coastal location for setting up digital infrastructure. With stronger fibre network and dedicated power, Mangalore can attract investment necessary for growth of digital infrastructure,” the KCCI president said.

The Budget proposal to establish five Regional Medical Hubs via PPP provided opportunity for Mangaluru to transform into a global healthcare destination. Mangaluru was close to pilgrimage centres namely Udupi, Dharmasthala, Kukke Subrahmanya, Kateel and Kollur. It also has good quality healthcare system provided by private medical colleges and AYUSH centres. Better civic infrastructure and amenities in temple towns will greatly improve pilgrim experience and increases repeat travel, Mr. Mudassar said.