The trade and industry has hailed the Kerala budget, saying that the measures announced is expected to give a push to the overall economic development, especially when the average GST collection data in the past two months recorded a growth of 14.5 per cent indicating a strong economic recovery.

The Cochin Chamber of Commerce and Industry said the budget has considered the chamber’s proposals such as setting up of industrial facilitation centres, revamping of plantation sector laws, promotion of private industry parks, ₹100 crore allocation for scheme to alleviate extreme poverty and focus on food processing sector.

The ₹200 crore allocation for industrial facilitation parks is going to be a game-changer for Kerala’s Industrial climate. Appreciating the special attention provided to startups, the chamber said the ₹200 crore allocation for setting up Translational Research Centres and startups incubation centres in university campuses could pave the way for the campuses to become hubs of innovation and employment generation.

Prioritising start-ups

The ₹250 crore capital fund for startups will enable more growth for the startups in Kerala. The plan to prioritise startups in government procurements will give a huge market opportunity for the startups to grow, flourish and sustain.

Vikas Agarwal, president, Indian Chamber of Commerce and Industry said that the new IT parks in Kannur and Kollam and the launch of satellite IT parks alongside NH would be a boost to the sector and have the potential to double exports in a very short time. The proposal to increase the fair value of land by 10 per cent generating additional ₹200 crore is a small step, but surely a good beginning.

The focus on providing industrial support to agriculture also deserves special appreciation. The constitution of Value-Added Agricultural Mission and setting up of a marketing company on the model of CIAL will enable more market for agriculture products and thereby support the agriculture community in Kerala.

The cruise tourism connectivity between Kovalam, Kollam, Kochi, Beypore, Mangalore and Goa would attract more tourists, he said.

VKC Razak, Managing Director, VKC Group said a newly announced year long campaign would help rejuvenate Covid stricken economy and it would go well with the “Shop Local” drive to promote neighbourhood businesses. The financial assistance for small-scale enterprises to upgrade themselves is a welcome step. With Kerala being a major footwear production hub s , these announcements are also expected to help the unorganised manufacturers in the state’s footwear industry.