Budget reflects State’s continued focus on diverse growth: trade bodies

The Budget presented by Karnataka Chief Minister Siddaramaiah reflected the State government’s continued commitment towards economic growth, industrial development, technology advancement, and balanced regional development across Karnataka, said trade bodies.

Uma Reddy, president, Federation of Karnataka Chambers of Industries (FKCCI), said the initiatives announced in the Budget demonstrated a positive approach to strengthening industry confidence, supporting MSMEs, promoting emerging technologies, and encouraging investments across the State.

FKCCI particularly welcomed several important initiatives aimed at strengthening the industrial ecosystem and creating new opportunities for investment, innovation, and employment.

“The enhanced focus on MSME development is a positive step, as improved access to technology, credit, and infrastructure will help small industries grow and generate employment,‘’ added Ms. Reddy.

In his reaction B.R. Ganesh Rao, president, Karnataka Small Scale Industries Association (KASSIA), observed that the Budget contained several encouraging measures for industry, particularly in infrastructure creation, skill development and industrial expansion beyond Bengaluru, though greater targeted support for Micro and Small Enterprises (MSEs) would further strengthen the State’s industrial ecosystem.

He noted that Karnataka continued to maintain strong economic momentum with a GSDP growth of 8.1%, higher than the national growth rate, and remained a leading destination for global investment, accounting for nearly 26.7% of India’s FDI inflows during 2025–26.

“This demonstrates the State’s resilience and its growing importance as a hub for advanced manufacturing, technology, start-ups and innovation-driven industries,” Mr. Rao added.

Acknowledging the State’s emphasis on industrial growth, would boost Karnaka’s strategy to promote investments in Tier-2 and Tier-3 cities under the Beyond Bengaluru scheme, he further said, the Industrial Policy 2025–30. “Decentralised industrial development can help reduce regional disparities while creating large-scale employment opportunities and new markets for MSEs across Karnataka.’’ Mr. Rao commented.

K. Ravi, senior vice president, BCIC and chairman, International Business Committee, appreciated the government’s commitment to strengthening the Micro, Small, and Medium Enterprises (MSMEs) sector through targeted financial incentives, skill development programs, and ease of doing business reforms.

“These measures are expected to boost manufacturing capabilities and create significant employment opportunities across the state,’’ Mr. Ravi added.

The Budget reflects the government’s clear intent to simplify processes and improve ease of doing business for both real estate developers and homebuyers, commented Murali Malayappan, chairman and managing director, Shriram Properties, said.

“The transition to Kaveri 3.0 is a long-awaited reform. Enabling remote registration will significantly reduce procedural hurdles and make the home-buying process more seamless,’’ he added.

According to Anil R.G, managing director, Concorde, a realty firm, “Investments in tunnel projects, metro expansion and road upgrades will significantly improve connectivity and support the growth of the real estate sector. Improved urban infrastructure and mobility will also help unlock new development corridors across the city.