The Kerala State Small Industries Association (KSSIA) has welcomed the State Budget for 2024-25.
The Budget raised great hopes for the sector and was found supportive of efforts to speed up investments, said A. Nizaruddeen and P.J. Jose, president and secretary respectively of KSSIA, on Monday.
The Budget has set apart ₹1,729.13 crore for industry and mineral sectors, while ₹773.09 has been allocated for medium and large industries. However, industrialists feel that the provision for the small sector is inadequate considering the contribution the segment makes to the economy.
KISSIA leaders said the State had seen the registration of 1.40 lakh new enterprises in the MSME sector last year. An equal number of registrations may be achieved this year too. But the government has to provide capital subsidies for new enterprises.
While the move on private industrial estates is welcome, the government will have to make provisions for infrastructure development in the upcoming 25 new private estates. The government has promised ₹3 crore each for industrial parks for infrastructure development.
The Budget has also made a provision of ₹14 crore for KSIDC industrial parks as well as ₹47.60 crore for 11 other industrial parks in the State. Both the KSIDC and Kinfra will benefit from substantial provisions in the Budget, KSSIA said.
The government’s determination to encourage new-generation enterprises and start-ups too is encouraging. Industrialists also welcomed the decision to hold an investors’ summit in the State this year. The government’s determination to attract ₹3 lakh crore of investments in three years will help the MSME sector in a big way, the association said.
The state’s investment stance is a cause for hope, said Adeeb Ahamed, managing director, LuLu Financial Holding. He added that the Finance Minister’s initiative to position Kerala as an investment-friendly state was a promising step, and that the establishment of development zones highlighted in the budget announcement was a strategy to attract expatriates and private investors to contribute to various development projects in the State.
Furthermore, the Budget emphasises the significance of collaboration with the private sector to formulate innovative development models, playing a pivotal role in expediting the growth of Kerala’s industrial sector, he added.
Suresh V.P., co-founder and chief operating officer of Experion Technologies, said the State government’s acknowledgment of the IT sector’s contribution to the Kerala economy was encouraging, and “we are hopeful that it will translate into tangible benefits for the sector in the future, with increased support in improving infrastructure for IT in the State,” he said.
The investment of ₹200 crore in Digital University and collaboration with Oxford for higher education in technology is a promising endeavour. The commitment to organise an international AI conclave is a step in the right direction too, he added.
Job V. Job, president of the Indian Chamber Of Commerce and Industry, said the focus on the Budget on key sectors was welcome. He said that the Budget had mentioned Sabarimala master plan, MSME sector, and the cashew sector besides proposing measures to address issues such as flash floods in Kochi.
The Budget for 2024-25 is a mixed Budget with focus on key sectors of growth of economy, while the proposed increase in tax on selected sectors could adversely affect the State. Special focus on sectors such as start-ups, infrastructure, and road development for the Vizhinjam port and nearby areas, development of West Coast Canal, skilling, IT, energy sector, and promotion of local tourism centres are to be appreciated, said M.I. Sahadulla, chairman, FICCI Kerala State Council.
According to D. Dhanuraj, chairman, Centre for Public Policy Research, the government’s emphasis on tourism, higher education, and ports signifies a recognition of potential sectors. “However, success depends on effective planning, private sector engagement, and ecosystem development — elements beyond the Budget’s immediate scope. The Budget lacked a comprehensive reform package and missed an opportunity to signal forthcoming policy changes for Kerala’s economy,” he said.
“It is evident that while the government aims for an impressive ₹3 lakh crore in investments over the next three years, a more detailed roadmap is essential for such ambitions to materialise. The emphasis on initiatives like the easing of starting a business, land pooling, and infrastructure development for entrepreneurial activities is positive, but translating these announcements into actionable, real-time plans is paramount,” he added.
