Industry bodies hail Union budget, see boost for MSMEs in Andhra Pradesh

Visakhapatnam: Industry representatives from FAPCCI, VCCI, and AP Chambers welcomed the Union budget, saying its emphasis on MSMEs, infrastructure, and industrial growth will benefit Andhra Pradesh, with Visakhapatnam poised to emerge as a key centre.Kankatala Mallikharjuna Rao, past President of FAPCCI, said the Budget provides targeted support to micro, small and medium enterprises. He pointed to the proposed ₹4,000 crore allocation to the Self-Reliant India Fund in 2026–27, noting 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, 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 Andhra Pradesh'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, zonal 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.