BENGALURU: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the Karnataka government to prioritise in its 2026-27 Budget growth led by Micro, Small and Medium Enterprises (MSME), infrastructure upgrades and industrial expansion beyond Bengaluru, and sought a Rs-2.24 crore grant to host its Global MSME Conclave.
In its pre-Budget memorandum submitted to Chief Minister Siddaramaiah on Monday under the leadership of president Uma Reddy, FKCCI called for a dedicated policy for micro and small enterprises, noting that they constitute nearly 97% of industrial units in the state. It also recommended a State Procurement Policy on the lines of the Centre’s mandate to ensure assured markets for local MSMEs.
A key demand is financial support for the Global MSME Conclave-2026, scheduled from May 29 to 31. With a total project cost of Rs 4.24 crore, FKCCI has proposed to mobilise Rs 2 crore internally and sought government assistance to bridge the Rs 2.24 crore gap, enabling MSMEs to avail stall subsidies.
The chamber stressed digital transformation of MSMEs through subsidies for ERP, Industry 4.0 tools, artificial intelligence and automation, besides integrating approvals under Sakala.
Meanwhile, Karnataka Small Scale Industries Association (KASSIA) members also met the CM and called for urgent fiscal and structural reforms to ease the burden on micro and small industries in the state, warning that rising land costs, high interest rates and compliance pressures are affecting competitiveness. KASSIA sought rationalisation of industrial land pricing. It demanded reservation of industrial plots for micro and small units and completion of basic infrastructure before allotment.