Budget drives economic growth with fiscal prudence; but doesn’t address specific needs of coastal Karnataka, says KCCI

KCCI urges government to address Coastal Karnataka's specific needs for economic growth in Budget, focusing on infrastructure and tourism.

Acknowledging government’s efforts in driving economic growth while maintaining fiscal prudence, the Kanara Chamber of Commerce and Industry (KCCI), Mangaluru on Friday, said the Budget does not adequately address the specific needs of coastal Karnataka.

Chamber president Anand G. Prabhu in a statement here said, “We urge the government to introduce targeted policies to develop Mangaluru as a regional economic hub, focusing on infrastructure, industrial growth, and tourism.“ He further said, “While the Budget demonstrates a commitment to infrastructure, industry, and social welfare, we believe a more balanced approach is needed to ensure equitable growth across Karnataka, particularly in the Coastal region.“

Hailing the ₹8,000 crore allocation under the Chief Minister’s Infrastructure Development Program (CMIDP), KCCI said the Budget lacks specific provisions for improving connectivity in Coastal Karnataka. Expansion of Mangaluru-Karwar National Highway 66 and modernisation of New Mangalore Port require urgent attention to support trade and tourism.

While the ₹30 crore allocation for developing fisheries road is a step forward, further investments in logistics, hinterland connectivity and railway freight facilities are crucial for economic growth. Effective implantation and financial allocation for the Water Transport Policy, including an international cruise terminal and a water metro in Mangaluru, is needed.

The incentives for investment and job creation in MSMEs, tourism and IT/ BT sectors should be extended to Tier-2 cities like Mangaluru to decentralise economic growth beyond Bengaluru. The ₹13,692 crore financial assistance for industries and ₹13,500 crore for services sector should include targeted incentives for Coastal Karnataka’s export-driven businesses and fisheries sector, Mr. Pai demanded.

Like ₹1,800 crore Brand Bengaluru initiative, Brand Coastal Karnataka initiative too should be taken up leveraging region’s tourism potential. While ₹200 crore allocation for sea erosion mitigation is good, the government should take proactive measures to prevent further coastline degradation and ensure sustainable coastal development.

Targeted subsidies for deep-sea fishing, modern cold storage, and fish processing units should be prioritised. Additional funding to College of Fisheries, Mangaluru, is required for research and innovation in sustainable fishing besides doubling the student strength.