KCCI Hails Budget’s Growth Focus, Urges Special Incentives for Karnataka’s Industrial Sector


Mangaluru, Feb 02, 2025: The Kanara Chamber of Commerce and Industry (KCCI), Mangaluru, has welcomed the Union Budget 2025-26, highlighting its focus on economic growth, ease of doing business, and key sectoral reforms. However, KCCI President Anand G. Pai emphasized the need for more industry-specific incentives for Karnataka, particularly in manufacturing, IT, and logistics, to enhance the region’s industrial competitiveness.
Pai stated that the budget reflects the government’s commitment to fostering growth through agriculture, MSMEs, exports, and investments. The introduction of new incentives for startups, along with enhancements in the credit guarantee cover and customized credit cards for micro-enterprises, would help small businesses scale operations without regulatory hurdles. The fund of funds for startups is expected to provide much-needed liquidity and encourage entrepreneurship and job creation.
KCCI welcomed the rationalization of tax exemptions and amendments in TCS and TDS provisions, noting that these changes would improve tax compliance and ease filing procedures. The continued emphasis on GST simplification and changes in customs and excise duty under the ‘Make in India’ initiative are likely to benefit domestic industries. The chamber also appreciated the government’s increased allocation for infrastructure, particularly the ₹1 lakh crore Urban Challenge Fund, which will strengthen transport, energy, and digital infrastructure, facilitating long-term economic growth.
The budget’s focus on agriculture, particularly the Prime Minister Dhan-Dhaanya Krishi Yojana and the Aatmanirbharta in Pulses initiative, is expected to enhance rural productivity and support farmers. Additionally, the emphasis on tourism, including the development of 50 major destinations, incentives for homestays, and the Heal in India initiative for medical tourism, was well received.
While acknowledging these positive steps, KCCI urged the government to further reduce corporate tax rates for MSMEs, introduce incentives for digitization in traditional industries, improve access to working capital for exporters, and provide specific policy support for Karnataka’s industrial sector. Pai reaffirmed KCCI’s commitment to advocating policies that drive economic growth in the coastal region and ensure Karnataka remains a key contributor to India’s economic progress.