FAPCCI, VCCI and AP Chambers praise Union Budget

Industry representatives from the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), Vizagapatam Chamber of Commerce and Industry (VCCI) and A.P. Chambers welcomed the Union Budget, saying its focus on MSMEs, infrastructure and industrial growth will benefit Andhra Pradesh, with Visakhapatnam emerging as a key centre.

Speaking to the media here on Monday (February 2), former president of FAPCCI Kankatala Mallikharjuna Rao said the Budget presented by Finance Minister Nirmala Sitharaman provides targeted support to micro, small and medium enterprises. He pointed out that the proposed ₹4,000 crore allocation to the Self-Reliant India Fund in 2026–27, stating it would improve access to capital for small businesses.

He also highlighted the plan to deploy “corporate mitras” in tier-II and tier-III cities to assist MSMEs with market access and compliance. Referring to the proposed ₹5,000 crore outlay over five years for the Visakhapatnam Economic Region, Mr. Mallikharjuna Rao said it recognises the city as a national growth hub integrating port-led trade, industry, tourism, agriculture and services.

Effective implementation could enhance infrastructure, logistics and industrial parks while creating demand for MSMEs in construction, transport, warehousing and services, he added.

M. Sudharsan Swami, president of VCCI, said the Budget offers opportunities for the State if backed by coordination between government and industry. He noted that the thrust on logistics, ports, coastal shipping and freight corridors aligns with the State’s maritime strengths.

He said the proposed Rare Earth Minerals Corridor could support high-value manufacturing in electronics, electric mobility and advanced materials. Proposals for container manufacturing, chemical and advanced manufacturing parks, along with incentives for electronics and semiconductor industries, could attract investment and create skilled and semi-skilled jobs.

P. Sobhan Prakash, chairman of AP Chambers, described the Budget as reflecting a long-term approach. He said the increase in capital expenditure to ₹12.22 lakh crore in 2026–27 is expected to drive employment and competitiveness. He also cited the focus on developing a full semiconductor value chain and said the tax holiday until 2047 for AI and cloud firms using Indian data centres could position Visakhapatnam as a strong digital infrastructure destination.