Thiruvananthapuram, Feb 1 Kerala's ruling Left Democratic Front (LDF) and the Opposition United Democratic Front (UDF) have criticised the Union Budget 2026-27 presented on Sunday, saying it left Kerala largely sidelined, as the Centre failed to announce any major infrastructure or development projects for the state.
The state's long-standing demands for railway development and AIIMS remained unaddressed, they said.
The only significant mentions for Kerala were restricted to a national Rare Earths Corridor and a conservation-focused "turtle trail" along the state’s coastline.
Finance Minister Nirmala Sitharaman, during her budget speech, highlighted a proposal to support mineral-rich states, including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, to establish dedicated Rare Earth Corridors.
This initiative aims to promote mining, processing, research, and manufacturing.
"A Scheme for Rare Earth Permanent Magnets was launched in November 2025. We now propose to support these states to establish corridors that will drive the mineral economy and industrial manufacturing," Sitharaman said in the budget speech.
Reacting to the proposed Rare Earth Corridor, Kerala Industries Minister P. Rajeev expressed concern and said it must be examined whether the project was aimed at taking Kerala’s minerals out of the state. “It has to be looked into whether the Centre is planning to take away minerals that are under the control of the state,” he said.
On the environmental and tourism front, the Union Budget proposed the development of "turtle trails" along key nesting sites in the coastal areas of Odisha, Karnataka, and Kerala. This forms part of a broader plan to develop ecologically sustainable trekking and hiking experiences across the country.
The Union Finance Minister detailed that the government intends to capitalise on India’s potential for world-class trekking.
Apart from the coastal turtle trails, the plan includes mountain trails in Himachal Pradesh, Uttarakhand, and Jammu and Kashmir, as well as hiking routes in the Araku Valley and Podhigai Malai in the Western Ghats.
The absence of big-ticket industrial and development projects is expected to lead to a heated political debate in the state. The budget also mentioned bird-watching trails along the Pulikat lake in Andhra Pradesh and Tamil Nadu as part of the new tourism circuit.
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