Kochi, Feb 1 (PTI) Various announcements made in Union budget on Sunday are beneficial to MSME and service sectors, FICCI Kerala State Council said.

In a statement, FICCI Kerala State Council Chairman VP Nandakumar observed that schemes for rare-earth processing, dedicated chemical paths, schemes for electronic components manufacturing, and textile parks are highly appreciable.

"Tax reforms to boost the manufacturing sector and reduction of duties for key export segments are notable announcements," he said in a statement.

According to FICCI, setting up a 10,000-crore SME growth fund will be highly beneficial for MSMEs. Announcements of various schemes for the service sector and tax reforms to boost service sector activities are also commendable.

"Setting up of a high-level committee on banking and financial sector, and allocation of more funds for infrastructure growth are also noteworthy. More reforms in the ease of doing business and ease of living are also highly beneficial to the economy of the country," the statement said.

Adeeb Ahamed, Managing Director, LuLu Financial Holdings said that the Union Budget 2026 reflects a clear preference for stability and continuity, particularly in the face of persistent global volatility.

"While it introduces a series of measures aimed at easing participation by Non-Resident Indians and overseas investors, it stops short of a broader push to unlock growth in key services-led sectors such as financial services and tourism," he said in a press release.

Among the notable steps is the rationalisation of foreign portfolio participation by individuals residing outside India, Ahamed said.

Despite being one of India’s largest remittance-receiving states, Kerala does not feature prominently in the Budget, with the expectation that this will be addressed going forward, the statement said.

"Overall, Budget 2026 focuses on improving processes and regulatory clarity, while leaving room for stronger momentum-building measures," the statement said.

VKC Razak, Chairman, CII Kerala said that the Union Budget 2026–27 is a forward-looking and confidence-enhancing budget that combines fiscal discipline with growth-driven reforms.

According to him, the Budget strengthens macroeconomic stability, boosts public investment, supports industry and employment, and lays a strong foundation for achieving the vision of Viksit Bharat.

"The budget will also significantly benefit Kerala by strengthening infrastructure and logistics, tourism, biopharma, agri, advanced materials manufacturing, medical value tourism and marine sector, supporting MSMEs and services, and promoting sustainable and employment-led growth in the State", he said.

Lekha Balachandran, Vice Chairperson, CII Kochi Zonal Council and Managing Partner, Resitech Electricals, appreciated the strong support for MSMEs, women-led enterprises, equity funding, Corporate Mitras, and SHE-MART.

Sreenath Vishnu, Vice Chairman, Vishnu Namboothiri Group, termed the Budget confidence-enhancing, noting opportunities for Kerala in semiconductors, the proposed rare-earth corridor, inland waterways, and coastal cargo development.

Shivdas B Menon, Managing Director, Sterling Farm Research and Services Pvt Ltd, said the thrust on high-value and high tech agriculture, particularly coconut and cashew, positions Kerala well to tap export markets, especially with new trade agreements such as the EU FTA.

Santosh Kumar, Co-Convenor, CII Kerala Agri, Food and Plantation Panel and Whole-time Director and CEO, Harrisons Malayalam Ltd, highlighted opportunities in cocoa and sandalwood, enabling Kerala to strengthen its presence in global markets. PTI TBA TBA ADB