Kerala Budget Draws Mixed Reactions: Industry Forums Praise Investment Push, Real Estate Body Criticises
The revised State Budget presented by Chief Minister V.D. Satheesan has received a largely positive response from industry forums, which have described it as investment-driven and focused on infrastructure and industrial growth. However, the Real Estate Consultants Association has criticised the budget for ignoring sectoral demands.
The Federation of Indian Chambers of Commerce and Industry (FICCI) termed the budget growth-oriented, stating that it would accelerate investment and economic development. V.P. Nandakumar, chairman of FICCI Kerala State Council, highlighted key initiatives such as Mission Samudra for transforming Kerala into a cohesive port city, the Rare Earth and Critical Mineral Corridor, Aviation Hub, Kerala MSME Growth Scheme, Kerala Knowledge Valley, Kerala Life and Life Science City, and Global Furniture Hub. FICCI also welcomed the proposed Invest Kerala data-driven cell, Investment Advisory Cell, and reconstitution of the Planning Board.
The Indian Chamber of Commerce and Industry (ICCI) called the budget a forward-looking roadmap that balances fiscal consolidation with investment-led growth. ICCI president Rajkumar Gupta praised the emphasis on maritime, MSMEs, and logistics, while urging stronger execution for Kerala's spice and seafood sectors and better integration of Kochi's port ecosystem.
The Luxury Bus Owners Association welcomed the 50% reduction in tax for All India Permit vehicles, saying it would boost tourism and public transport while discouraging vehicle registrations in other states. The All Kerala Gold and Silver Merchants Association hailed the proposal for a Global Gold Hub with private participation, expressing willingness to invest in the project.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) described the budget as a far-sighted development document that could help Kerala become a globally competitive economy, highlighting its focus on infrastructure, logistics, maritime economy, skill development, and startups. The Southern India Chamber of Commerce and Industry (SICCI)-Kerala also backed the budget. Thomas Nechupadam, chairman of SICCI-Kerala, said flagship initiatives such as Mission Samudra, Invest Keralam, the Southern Kerala Economic Corridor, the Aviation Hub, the Kerala MSME Growth Scheme, and the focus on renewable energy, logistics, and healthcare have the potential to transform Kerala into a globally competitive investment and business destination.
However, the Real Estate Consultants Association criticised the budget for ignoring workers in the sector. Mithunlal Mitra, district president of the association in Ernakulam, said long-pending demands for a welfare fund and standardised commission were overlooked.
