KCCI Responds to Karnataka State Budget 2026-27, Cites Progress and Areas for Improvement in Coastal Region
Mangaluru: The Kanara Chamber of Commerce and Industry (KCCI), Mangaluru, has released a statement acknowledging the Karnataka State Budget 2026-27, presented earlier today by Chief Minister Shri Siddaramaiah, which totals Rs 4.48 lakh crore. While the KCCI recognizes the budget’s emphasis on infrastructure development and technology-led growth within existing fiscal constraints, it also points to areas where targeted support for Dakshina Kannada and the broader coastal region falls short of expectations.
The KCCI expressed its appreciation for several key measures outlined in the budget. The renewed focus on the fisheries sector, including increased subsidy support for fishermen’s kits, the establishment of a Centre of Excellence at Mangalore Fisheries College, and the expansion of Matsya Darshinis across key districts, was lauded as a positive step. The Chamber also welcomed the announcement of a Comprehensive Coastal Tourism Development Plan, aimed at unlocking the tourism potential of Karnataka’s coastal districts. The proposed enhancements to connectivity through seaplane and heli-taxi services, alongside river cruise and joy ride tourism initiatives, are anticipated to stimulate tourism activity in the region.
Furthermore, the KCCI acknowledged the allocation of Rs 8,000 crore under the Chief Minister’s Infrastructure Program for minor irrigation, roads, and urban projects, as well as the Rs 5,000 crore earmarked for Bangalore flood mitigation measures. These investments are expected to enhance logistics and connectivity, which are deemed critical for Dakshina Kannada’s export-oriented businesses, ports, and fisheries sector. The establishment of an AI Centre of Excellence (Rs 16 crore) and the Bangalore Robotics Zone, in partnership with NASSCOM and IISc, were also recognized as positive signals of technological momentum that coastal IT/BT firms in Mangaluru can leverage for innovation and job creation.
However, the KCCI also voiced concerns regarding the budget’s perceived lack of targeted support for Dakshina Kannada and other coastal regions. The Chamber noted that specific incentives for Mangaluru Port modernization, coastal highway expansion, and horticulture processing units, as outlined in its Pre-Budget Memorandum, were not addressed, despite the state’s GST revenue shortfalls impacting local trade. The KCCI also highlighted the absence of measures to address concerns raised by Micro, Small, and Medium Enterprises (MSMEs), such as the lack of dedicated credit guarantees, export subsidies, and power tariff relief to counter rising operational costs.
In its concluding remarks, the KCCI expressed disappointment that the expectations and aspirations of the region, particularly those associated with the “Beyond Bengaluru” initiative, were not clearly reflected in the budget. The Chamber suggested that any benefits to the coastal region would likely be indirect, resulting from spillover effects rather than direct targeted investment. The KCCI hopes to engage with the government to further discuss these concerns and advocate for policies that will support sustainable economic growth in the Kanara region.