Industry Bodies Welcome Union Budget, See Big Boost for MSMEs and Visakhapatnam Growth
Industry representatives from FAPCCI, VCCI, and AP Chambers have welcomed the Union Budget, noting that its focus on micro, small, and medium enterprises (MSMEs), infrastructure, and industrial growth will benefit Andhra Pradesh, with Visakhapatnam emerging as a key center.
Speaking to the media on Monday, Kankatala Mallikharjuna Rao, former president of FAPCCI, stated that the Budget presented by Nirmala Sitharaman offers targeted support to MSMEs. He pointed out the proposed allocation of Rs 4,000 crore to the Self-Reliant India Fund for the fiscal year 2026–27, emphasizing that it would enhance small businesses’ access to capital.
Rao also highlighted plans to deploy “corporate mitras” in Tier II and Tier III cities to assist MSMEs in market access and compliance. He referred to the proposed outlay of ₹5,000 crore over five years for the Visakhapatnam Economic Region, noting that it recognizes the city as a national growth hub that integrates port-led trade, industry, tourism, agriculture, and services.
Effective implementation of these initiatives could improve infrastructure, logistics, and industrial parks, while also creating demand for MSMEs in construction, transport, warehousing, and services, he added.
M Sudharsan Swami, president of VCCI, remarked that the Budget presents opportunities for the State if there is effective coordination between the government and industry. He noted that the emphasis on logistics, ports, coastal shipping, and freight corridors aligns well with the State’s maritime strengths.
Swami mentioned that the proposed Rare Earth Minerals Corridor could support high-value manufacturing in electronics, electric mobility, and advanced materials. He also pointed out that the proposals for container manufacturing, chemical and advanced manufacturing parks, along with incentives for electronics and semiconductor industries, could attract investment and lead to the creation of skilled and semi-skilled jobs.
P Sobhan Prakash, president of AP Chambers, described the Budget as reflecting a long-term approach. He noted that the increase in capital expenditure to ₹12.22 lakh crore in the fiscal year 2026–27 is expected to drive employment and enhance competitiveness.
Additionally, he highlighted the focus on developing a complete semiconductor value chain and stated that the tax holiday until 2047 for artificial intelligence and cloud firms utilizing Indian data centers could position Visakhapatnam as a strong destination for digital infrastructure.