Industry leaders in Kerala welcome Union Budget

Corporate leaders representing various sectors in Kerala termed the Union Budget presented on Saturday positive and growth-oriented. In an interactive session with the media, the industry leaders highlighted the importance placed by the Union Finance Minister on areas such as agriculture, MSME, start-ups, innovation and investment.

Vinod Manjila, Chairman CII Kerala State Council said it was a positive Budget that takes care of the diverse sectors of the economy including agriculture, exports, start-ups and ease of doing business.

“The government’s focus on easier export credit, cross-border support and MSME assistance is a decisive step toward strengthening India’s global trade position,” he said. Bharat Trade Net, integrated with the Unified Logistics and Trade Platform, will streamline trade documentation and finance, making exports more seamless.

Fiscal prudence

Shalini Warrier, Vice Chairperson CII Kerala State Council said the Finance Minister had presented a growth-oriented Budget with fiscal prudence in mind. “Keeping the fiscal deficit below 5% is commendable,” she said, adding that Kerala is in a position to take advantage of many of the proposals in areas such as agriculture and exports. She said the decision to enhance FDI limit in the insurance sector from 75% to 100% is a positive decision.

Ajay George Varghese, Managing Director, Bipha Drug Laboratories Pvt. Ltd., talked about benefits to the MSME sector due to the hike in investment limits. The concessions announced to the start-ups will also benefit Kerala in a big way, he added. Mudra loans to homestays is another area of benefit for Kerala. Cities like Thiruvananthapuram and Kochi are well positioned to take advantage of the global capability centres planned in Tier-II cities.

Berly Cyriac Nelluvelil, Director, Medivision Scan and Diagnostic Centre said the decision to increase the medical education seats by another 75,000 in five years is commendable. He also welcomed the decision to open day care centres for cancer patients in all district hospitals.

Yadu Narayanan Mooss, Executive Director, Vaidyaratnam Oushadhashala said the steps announced in the tourism and healthcare sector will have a positive impact for the Ayurveda sector. The decision to give concessions on visa fee for medical tourism will also benefit the Ayurveda sector and medical value tourism in Kerala.

Santosh Kumar, Chief Executive, Harrisons Malayalam Ltd. said the plantation sector in Kerala may benefit from the overall boost to the economy in the wake of the Budget proposals.

Stimulating demand

The Union Budget is clearly designed to boost short-term consumption. The decision to remove Income Tax on income up to ₹12 lakh stands out as a move to increase middle-class spending power. This is expected to stimulate demand, especially in sectors like real estate, retail and automobiles, which benefit from increased disposable income, said Adeeb Ahamed, Managing Director, LuLu Financial Holdings.

He said it is commendable that FDI in the insurance sector will be raised from 74% to 100%, a move that will attract foreign capital, enhance competition, and drive innovation in the sector. It is encouraging to see MSMEs receiving strong focus, rightly recognized as one of the key engines of India’s growth. Measures such as enhancing the credit guarantee cover, increasing investment and turnover limits and boosting loans for export MSMEs will help bridge the credit gap and support expansion.

Though there was talk about financial sector reforms, the actual measures announced do not fully reflect this ambition. The revamped central KYC registry is a step in the right direction, emphasizing the need for regulatory frameworks to evolve with technological advancements. However, one hopes that more concrete steps will be announced soon to enhance financial sector resilience and growth, he added.