Budget 2026 Fails to Address Coastal Karnataka's Economic Corridor, Says KCCI
The Kanara Chamber of Commerce and Industry (KCCI) has voiced strong criticism regarding the Union Budget 2026-27, pointing out that while it establishes a robust national framework, it significantly overlooks the need for a dedicated coastal economic corridor along the West coast. According to KCCI, this omission represents a major missed opportunity for the development of coastal Karnataka, particularly in cities like Mangaluru.
Industry Expectations and Disappointments
KCCI president PB Ahmed Mudassar highlighted that the industry had anticipated targeted fiscal support for initiatives such as the proposed ‘Silicon Beach' project. Additionally, there was an expectation for deeper investments in underutilised deep-water ports and a mission-mode push to integrate the blue economy into global supply chains more effectively. Mudassar emphasized that the exclusion of coastal Karnataka from proposed high-speed rail growth corridors further limits connectivity-led development in the region.
"Without focused incentives for Global Capability Centers (GCCs), technology clusters, and port-based industries in tier-II coastal cities, the strategic potential of this region remains under-leveraged," Mudassar stated. He urged the government to address this gap in subsequent policy actions to unlock the area's full economic capabilities.
Maritime Development and Educational Shortfalls
Despite the budget's strong support for maritime development, including the Maritime Development Fund and various port projects, KCCI noted the absence of announcements regarding the establishment of a Central Maritime University or a dedicated maritime higher education institute in Mangaluru. This has been a long-standing local demand that remains unaddressed, potentially hindering skill development and innovation in the maritime sector.
Furthermore, the KCCI stressed that unless the arecanut economy is also tackled, the overall impact of budget measures on coastal Karnataka may remain limited, affecting local agricultural communities and related industries.
Healthcare and Higher Education Perspectives
On a positive note, Dr. B Sachidanand Rai, state president of the Karnataka Orthopaedic Association (KOA), welcomed the finance minister's announcement to remove basic customs duty on 17 cancer-related drugs and medicines. "Since the coastal region is considered a medical hub, with many hospitals offering treatments for cancer, this move will deliver significant relief to patients and families coping with high treatment costs," said Dr. Rai.
However, MS Moodithaya, vice-chancellor of Nitte (Deemed to be University), expressed disappointment, stating that the Union Budget 2026 did not bring much happiness to the higher education sector as no new projects or plans were announced. This lack of focus could slow down academic advancements and research opportunities in the region.
Political and Economic Opportunities Highlighted
Dakshina Kannada MP Capt Brijesh Chowta offered a more optimistic view, asserting that the budget opens multiple avenues for growth if regions proactively align themselves with the opportunities presented. He pointed to several key initiatives:
- The Coastal Cargo Promotion Scheme and port-led development initiatives, which are expected to strengthen Mangaluru's role as a maritime and logistics hub.
- MSME-focused measures, including improved credit access, faster payments, and enhanced financing options, aimed at supporting local enterprises.
- The proposal to develop city economic regions, providing a significant opportunity to position the Mangaluru–Udupi corridor as a growth centre.
- Support for indigenised seaplane manufacturing and operations, offering new possibilities for coastal connectivity and tourism, thereby strengthening Mangaluru's role as a regional mobility hub.
Chowta also welcomed the emphasis on the Orange Economy, which aligns well with Dakshina Kannada's emerging creative and STEM-linked talent base, and the proposal to establish a National Institute of Hospitality, which could boost the local hospitality and tourism sectors.
In summary, while Budget 2026 presents some promising elements for coastal Karnataka, the absence of a dedicated economic corridor and specific educational investments has left key stakeholders like KCCI calling for more targeted policy actions to fully harness the region's potential.
