The Kanara Chamber of Commerce and Industry (KCCI) has acknowledged the Karnataka government’s efforts in promoting economic growth and fiscal responsibility but has criticized the 2025-26 budget for not sufficiently addressing the distinct needs of Coastal Karnataka.
To better position Mangaluru as a regional economic hub, KCCI has urged the government to implement tailored policies that focus on infrastructure enhancement, industrial development, and tourism expansion. Anand G Pai, President of KCCI, highlighted the absence of specific measures to improve connectivity within Coastal Karnataka. He emphasized the urgent necessity for the expansion and modernization of the Mangaluru-Karwar coastal highway and the New Mangalore Port to facilitate regional trade and boost tourism.
While the allocation of ₹30 crore for developing fishing link roads is seen as a positive step, KCCI advocates for further investment in logistics, hinterland connectivity, and railway freight facilities to stimulate economic development. The proposed Water Transport Policy, which includes plans for an international cruise terminal and a water metro in Mangaluru, has been welcomed, though there remain uncertainties regarding its effective implementation and financial backing.
Pai noted that, although the government’s emphasis on AI-driven traffic management in Dakshina Kannada is commendable, comprehensive urban development plans for Mangaluru are lacking. The chamber calls for multi-level parking facilities to mitigate congestion in the city’s commercial areas.
KCCI has praised the government’s initiatives aimed at fostering investments and job creation within the MSME, tourism, and IT/BT sectors, urging that similar incentives be extended to tier-2 cities like Mangaluru to promote balanced economic growth beyond Bengaluru. The allocation of ₹13,692 crore for industrial development and ₹13,500 crore for service sector growth should include specific incentives tailored to Coastal Karnataka’s export-oriented businesses and the fisheries sector.
The organization also viewed KEONICS’ plan to create a Global Technology Centre in Mangaluru as a progressive step and called for further incentives to attract IT and fintech companies to the region. Pai suggested that the ₹1,800 crore ‘Brand Bengaluru’ initiative should be complemented by a ‘Brand Coastal Karnataka’ initiative to harness the region’s tourism potential, particularly in beach, cruise, and cultural tourism.
Regarding the initiative to develop a Water Transport Museum and Experience Centre in Mangaluru, Pai believes it could enhance tourism but emphasized the need for additional funding to upgrade hospitality infrastructure in the region. Significant improvements in coastal tourism and wayside amenities in Dakshina Kannada are crucial to attract high-value tourists.
In relation to the proposed new fisheries policy for the state, he advocated for targeted subsidies for deep-sea fishing, modern cold storage, and fish processing units to be prioritized. While the doubling of student enrollment at the College of Fisheries in Mangaluru is a positive development, there is a pressing need for more funding dedicated to research and innovation in sustainable fisheries.
Pai concluded by reaffirming KCCI’s commitment to collaborate with policymakers to advocate for the interests of the business community and to promote holistic economic development in the region.
