Industry Leaders in Visakhapatnam Applaud Union Budget's Focus on MSMEs and Infrastructure
Industry representatives from prominent business chambers in Visakhapatnam, including the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), Visakhapatnam Chamber of Commerce and Industry (VCCI), and AP Chambers, have warmly welcomed the Union budget. They assert that its strong emphasis on micro, small, and medium enterprises (MSMEs), infrastructure development, and industrial growth will significantly benefit Andhra Pradesh, with Visakhapatnam positioned to emerge as a pivotal economic centre in the region.
Targeted Support for MSMEs and Economic Development
Kankatala Mallikharjuna Rao, a past President of FAPCCI, emphasised that the budget provides targeted support to MSMEs. He pointed to the proposed allocation of ₹4,000 crore to the Self-Reliant India Fund in 2026–27, noting that this substantial funding would greatly improve access to capital for small businesses, fostering their growth and sustainability.
Rao also highlighted the innovative plan to deploy "corporate mitras" in Tier-II and Tier-III cities. These facilitators are designed to assist MSMEs with critical aspects such as market access and regulatory compliance, thereby enhancing their operational efficiency and competitiveness.
Visakhapatnam Recognised as a National Growth Hub
Referring to the proposed ₹5,000 crore outlay over five years for the Visakhapatnam Economic Region, Rao stated that this initiative recognises the city as a national growth hub. This ambitious project aims to integrate port-led trade, industry, tourism, agriculture, and services into a cohesive economic ecosystem.
He added that effective implementation of this plan could lead to significant enhancements in:
- Infrastructure development
- Logistics networks
- Industrial parks
Furthermore, it is expected to create substantial demand for MSMEs in sectors such as construction, transport, warehousing, and various services, thereby stimulating local economic activity.
Opportunities for Andhra Pradesh's Maritime Strengths
M Sudharsan Swami, president of VCCI, remarked that the budget offers numerous opportunities for Andhra Pradesh, provided there is robust coordination between the government and industry stakeholders. He noted that the budget's thrust on logistics, ports, coastal shipping, and freight corridors aligns perfectly with the state's inherent maritime strengths.
Swami also mentioned that the proposed Rare Earth Minerals Corridor could support high-value manufacturing in cutting-edge sectors, including:
- Electronics
- Electric mobility
- Advanced materials
Additionally, proposals for container manufacturing, chemical and advanced manufacturing parks, along with incentives for electronics and semiconductor industries, are seen as potential magnets for investment. These initiatives are anticipated to create a wide range of skilled and semi-skilled jobs, boosting employment in the region.
Long-Term Approach and Digital Infrastructure Prospects
T Sobhan Prakash, zonal chairman of AP Chambers, described the budget as reflecting a long-term strategic approach. He pointed out that the increase in capital expenditure to ₹12.22 lakh crore in 2026–27 is expected to drive employment generation and enhance industrial competitiveness across the board.
Prakash also cited the focus on developing a full semiconductor value chain as a key highlight. Moreover, he emphasised that the tax holiday until 2047 for artificial intelligence (AI) and cloud firms utilising Indian data centres could strategically position Visakhapatnam as a strong destination for digital infrastructure, attracting tech investments and fostering innovation in the digital economy.
