Thiruvananthapuram: The Kerala government has announced a new Income Support Scheme for workers in traditional industries and a concessional financing programme through the Kerala Financial Corporation offering loans at just 3% interest for new entrepreneurs.
Presenting the 2026-27 Budget, Chief Minister and Finance Minister V. D. Satheesan said the measures are aimed at protecting traditional sectors while encouraging a new generation of entrepreneurs and job creators.
The Income Support Scheme is expected to benefit workers engaged in Kerala’s traditional industries, including coir, handloom, handicrafts, cashew processing and other heritage-based sectors. These industries provide livelihoods to thousands of families but have faced challenges due to changing market conditions, rising costs and increased competition.
The government stated that the scheme will help ensure income security for workers while supporting the revival and modernization of traditional industries. Officials believe the initiative will strengthen rural economies and preserve sectors that are closely linked to Kerala’s cultural and economic heritage.
In a major boost for entrepreneurship, the Budget also announced that new entrepreneurs will be eligible for financial assistance through Kerala Financial Corporation at a highly subsidized interest rate of 3 percent. The scheme is designed to reduce the cost of capital for startups and small businesses, making it easier for young entrepreneurs to launch and expand their ventures.
The concessional loan programme is expected to support businesses across sectors including manufacturing, services, technology, tourism and agro-based industries. The government hopes the initiative will generate employment opportunities and stimulate investment across the state.
These announcements complement other entrepreneurship-focused proposals in the Budget, including plans to establish 10,000 new MSMEs, strengthen the startup ecosystem and create a Global Job Watch Tower to align workforce skills with emerging employment opportunities.
The government emphasized that supporting traditional industries and encouraging entrepreneurship are both essential for achieving balanced economic growth. By combining welfare measures with investment promotion, the UDF administration aims to create a more inclusive and sustainable development model for Kerala.
