Union Finance Minister Nirmala Sitharaman upon her arrival at the Parliament House complex to present the ‘Union Budget 2025-26.
Credit: PTI photo
Thiruvananthapuram: Even as Kerala failed to get any direct allocations in the union budget for almost all its key and specific demands, various announcements in the budget ranging from ship building clusters to development of 50 tourist sites and nuclear energy mission to Rs 20,000 crore for PM Surya Ghar Muft Bijli Yojana rooftop solar scheme could benefit Kerala.
A long pending proposal to set up a shipyard at Poovar close to the Vizhinjam in Thiruvananthapuram has recently got some attention as the international seaport at Vizhinjam became operational and started attracting all major international shipping firms. Hence the thrust in the union budget for the ship building sector could give further lease of life for the proposal.
Former shipping secretary K Mohandas told DH that, except for the challenges in getting land, Poovar is an ideal spot for a shipyard owing to the natural depth of the sea and proximity to the international seaport.
Tourism, which is one key sector of Kerala, could take advantage from the budget proposal to develop 50 top tourist spots. The proposal to extend the Mudra loans to homestays could also bring cheers to the sector, especially since homestay has become a thriving business in Kerala. BJP's maiden and lone Lok Saba MP from Kerala actor turned union minister of state Suresh Gopi is holding the tourism portfolio. It could also be an added advantage in tapping the benefits of the budget provisions.
The budget announcement of the Nuclear energy mission has also come at a time when the Kerala State Electricity Board is pushing for setting up a nuclear power plant in the state, despite resistance from various quarters citing health hazards. Similarly, Kerala could benefit from the allocation of Rs 20,000 crore for PM Surya Ghar Muft Bijli Yojana rooftop solar scheme as the state has been witnessing impressive response to the subsidised roof top solar scheme with over 1.7 lakh consumers so far installing roof top solar system.
The income tax cushion to the middle class could have its positive reflection on consumer states like Kerala with a high number of salaried class people. It could also enhance the GST revenue of the state.
Various forums like the Cochin Chamber of Commerce and Industry and Malabar Chamber of Commerce have welcomed the budget.