Union Budget Misses Opportunity for Coastal Economic Corridor: KCCI

Mangalore Today News Network

Mangaluru, Feb 1, 2026: While the Union Budget 2026 has laid a strong foundation for national development, the absence of a dedicated Coastal Economic Corridor for the West Coast is a significant missed opportunity for Mangaluru and coastal Karnataka, the Kanara Chamber of Commerce and Industry (KCCI) has said.

In a statement issued on Sunday (February 1, 2026), KCCI president P.B. Ahmed Mudassar said industry stakeholders had expected targeted fiscal support for the proposed “Silicon Beach” initiative, deeper investment in underutilised deep-water ports, and a mission-mode push for the blue economy to better integrate the region into global supply chains. He expressed concern that the exclusion of coastal Karnataka from the proposed high-speed rail growth corridors would limit connectivity-led development.

Mr. Mudassar said that without focused incentives for technology clusters and port-based industries in Tier-II coastal cities, the strategic potential of the region would remain under-leveraged. He urged the government to address this gap through subsequent policy measures.

Despite strong maritime development support in the Budget, he noted that there was no announcement on establishing a Central Maritime University or a dedicated maritime higher education institute in Mangaluru, a long-pending demand. Such an institution, he said, would help leverage coastal skills and trade potential by formalising maritime education, boosting specialised training, and strengthening the city’s role in shipping, logistics and ocean economy sectors.

Referring to agriculture-related measures, Mr. Mudassar said the Budget’s proposed Coconut Promotion Scheme, aimed at increasing output by replacing old, low-yield trees with improved varieties, along with dedicated programmes for cashew and cocoa to strengthen domestic raw material supply and export competitiveness, were positive steps. However, he cautioned that unless the arecanut economy was also addressed, the overall impact of these measures on the Mangaluru region could remain limited.

He welcomed the proposal of a tax holiday until 2047 for foreign firms delivering global cloud services from India-based data centres, saying it would incentivise hyperscale cloud and AI infrastructure investments. Citing a Deloitte–Karnataka Digital Economy Mission (KDEM) study, he said Mangaluru had been identified as a highly cost-efficient coastal location for digital infrastructure. With stronger fibre networks and dedicated power supply, the city could attract significant investment in this sector.

Mr. Mudassar also said the proposal to establish five Regional Medical Hubs through the public-private partnership (PPP) model offered an opportunity for Mangaluru to emerge as a global healthcare destination. Given its proximity to major pilgrimage centres such as Udupi, Dharmasthala, Kukke Subrahmanya, Kateel and Kollur, and its strong private healthcare, medical colleges and AYUSH facilities, improved civic infrastructure and amenities in temple towns would enhance pilgrim experience and encourage repeat travel, he added.