Budget marks pivotal moment in economic trajectory: Kerala biz community

The Union Budget proposals presented by Finance Minister Nirmala Sitharaman on Saturday received a positive response from the business community in Kerala.

Yusuff Ali M A, Chairman of Lulu Group said the buget marks a pivotal moment in India's economic trajectory, delivering a much-needed boost to the middle class while advancing the country's goal of becoming a $5 trillion economy.

Key measures, such as income tax reductions including a no-tax threshold up to Rs 12 lakhand expanded exemptions and incentives for startups and MSMEs, will directly benefit individual incomes and entrepreneurial ventures, he said in a statement here.

This budget clearly empowers the middle class and fosters a vibrant, self-reliant economy, he added.

The direction of the budget is towards the goal of Vikasit Bharat, Confederation of Indian Industry (CII) Kerala Chairman Vinod Manjila said.

"A very positive budget that takes care of the diverse sectors of the economy including agriculture, middle class, exports, startups and ease of doing business", he added.

It will benefit Kerala industry with regard to tourism, health care, and export, Manjila said.

The Cochin Chamber of Commerce and Industry has given a thumbs up' to the various budget proposals, aligning with the key insights from the Economic Survey presented in Parliament on January 30, 2025, which support and satisfy the Union Budget 2025, according to a release issued by the organisation.

"Exemption extended to ship building units should be welcome by Kerala as it should directly help Cochin Shipyard," it said.

The Chamber president S P Kamath, welcomed the central government's initiative to rationalize customs duty on marine products in the Union Budget, recognizing it as a significant boost for the industry.

Shivadas B Menon, Managing Director, Sterling Farm Research and Services Pvt Ltd, said the budget provides a good opportunity for Kerala. The state has to devise ways to take advantage of the announcements made in areas like MSME, agriculture, Value addition exports and investments.

Yadu Narayanan Mooss, Director, Vaidyaratnam Oushadhashala said the steps announced in the tourism and healthcare sector will have a positive impact for the Ayurveda sector. The decision to give concessions to Visa fee for medical tourism will also benefit the ayurveda sector and Medical value Tourism in Kerala.

Venkatraman Venkateswaran, Group President and CFO of Kerala-based Federal Bank said the budget is growth-oriented, focusing on our journey towards Viksit Bharat.

Labour-intensive sectors like agriculture, footwear, leather, toys, and food processing, which are largely MSME sectors, have received a boost. This budget complements our focus on the MSME sector and presents an opportunity to further strengthen our relationship with customers and finance their growth. The personal income tax rate reduction also provides a boost from the consumption side, he said.

In summary, it is a balanced budget with a boost to consumption, he added.