Kerala’s latest Budget has once again highlighted the importance of the Vizhinjam International Seaport in Thiruvananthapuram and a new rare earth–driven industrial push at the heart of its growth story, signalling a sharper maritime focus for the state economy.
Presenting the 2026–27 Budget, Kerala Finance Minister K.N. Balagopal stressed Vizhinjam as the state’s flagship infrastructure asset and a future global transshipment hub. For Vizhinjam region alone, a developmental budget of Rs 1,000 crore was announced.
Balagopal’s budget focused on continued support infrastructure around Vizhinjam and other coastal assets: improving road and rail connectivity, strengthening fishing harbours, and backing coastal protection and tourism‑linked projects along the shoreline.
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For this, Rs 183.98 crore has been allotted to the development of coastal areas.
Closely related to it is the Rs 100 crore earmarked for a rare-earth corridor for the state. The rare-earth corridor will be set up between Kochi and Chavara in Kollam, and can be easily accessed from Thiruvananthapuram through the National Highway and other feeder routes.
The latest state budget came after the recent commitments by Adani Ports and Special Economic Zone (APSEZ) to invest a cumulative Rs 30,000 crore in the Thiruvananthapuram port, including an additional Rs 16,000 crore in Phase 2 to ramp up capacity from 1 million TEUs to 5.7 million TEUs by 2029.
Union Shipping Minister Sarbananda Sonowal recently said the maritime sector is expected to attract more than Rs 80 lakh crore nationally in coming years, with Kerala implementing 56 Sagarmala‑linked projects worth over Rs 24,000 crore.
Other maritime-related budget announcements included Rs 100 crore earmarked for a group insurance project for fishermen in the state, and Rs 3 crore allocated for the sea safety project.
However, the state capital lost out on a few major investments as no significant announcements were made for the development of roadways and the Thiruvananthapuram metro project, both long-standing demands from the citizens of Kerala’s largest city by population and area.
