Sun Feb 01 10:36:10 UTC 2026: ### Coastal Karnataka Disappointed by Omission from Union Budget 2026

The Story:

The Kanara Chamber of Commerce and Industry (KCCI) in Mangaluru expressed disappointment with the Union Budget 2026, specifically citing the absence of a dedicated Coastal Economic Corridor for the West Coast. While acknowledging the budget’s strong national foundation, the KCCI highlighted missed opportunities for the Mangaluru region, including a lack of fiscal support for the “Silicon Beach” initiative, deeper investment in deep-water ports, and a mission-mode push for the blue economy. The KCCI also lamented the absence of a Central Maritime University in Mangaluru, a long-standing demand to leverage coastal skills and trade potential.

Key Points:

  • The KCCI expressed disappointment over the absence of a dedicated Coastal Economic Corridor for coastal Karnataka in the Union Budget 2026.
  • Industry expected fiscal support for the “Silicon Beach” initiative and investments in deep-water ports.
  • The exclusion from high-speed rail growth corridors was viewed as limiting connectivity-led development.
  • The budget lacked incentives for technology clusters and port-based industries in Tier-II coastal cities.
  • There was no announcement regarding the establishment of a Central Maritime University in Mangaluru.
  • The budget proposed a Coconut Promotion Scheme, but did not address the arecanut economy which is important to the Mangaluru region.
  • A tax holiday until 2047 was proposed for foreign firms delivering global cloud services from India-based data centers.
  • The Budget proposal to establish five Regional Medical Hubs via PPP provided opportunity for Mangaluru to transform into a global healthcare destination

Key Takeaways:

  • Regional economic expectations are not always met by national-level budget allocations.
  • Specific industries and regions often seek targeted support beyond broader national initiatives.
  • Infrastructure and educational initiatives are key demands for regional economic development.
  • The private sector and local chambers of commerce play a crucial role in advocating for regional economic interests.
  • The budget includes incentives for certain sectors, such as cloud services, indicating strategic priorities for investment.

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