The Kanara Chamber of Commerce and Industry (KCCI), based in Mangaluru, has expressed disappointment over the lack of targeted incentives for industries within Karnataka in the Union Budget for 2025-26.
Anand G. Pai, the President of KCCI, noted that key sectors such as manufacturing, information technology (IT), and logistics were not given the attention they require in this budget. He emphasized the urgent need for dedicated policy support in Karnataka’s coastal and industrial areas to bolster industrial growth and enhance global competitiveness.
While acknowledging that the budget provides a strong foundation, he argued that additional initiatives, especially in the realm of Micro, Small, and Medium Enterprises (MSMEs), could significantly boost business confidence. He proposed further reduction of corporate tax rates for MSMEs to promote their expansion, as well as improved access to working capital and reduced borrowing costs for both MSMEs and exporters.
Pai highlighted the necessity of clearer implementation timelines for new tax regulations to facilitate easier compliance. Moreover, the KCCI called for incentives aimed at the digitization and automation of traditional industries to improve their competitiveness.
He expressed appreciation for the government’s vision of a self-reliant and globally competitive India and emphasized the importance of constructive dialogue to ensure the successful implementation of the budget measures. “We remain dedicated to advocating for policies that drive economic growth in the coastal region of Karnataka and across India,” Pai concluded.
