Kochi: Ernakulam district, recognised as the "State's highest contributor to tax revenue and a key driver of economic activity", stands as a major beneficiary of targeted financial allocations in the 2026-27 Kerala Budget. Presented by Finance Minister K N Balagopal, the fiscal plan earmarked funds for several major infrastructure and technology projects, solidifying Kochi's role as the powerhouse of Kerala's economy.

A centrepiece of the budget's technological vision is the official earmarking of ₹30 cr to kickstart 'Cyber Valley', which is the AI Township announced as part of Infopark Phase III. Planned across 300 acres of Kochi Infopark Phase III, this ambitious project is designed as an "AI-native" township that leverages a centralised "City Brain" to manage infrastructure, traffic, and utilities in real-time.

Envisioned as a carbon-negative and zero-waste hub, Cyber Valley aims to attract global capability centers (GCCs) and generate approximately two lakh direct jobs by integrating commercial IT spaces with modern residential units and healthcare facilities.

To support this growing workforce, the Finance Minister also set apart ₹5 crore for a new scheme to provide safe, high-quality lodging for women IT professionals at Infopark Kochi.

Infrastructure and mobility upgrades in the district receive significant backing, headlined by an allocation of ₹79.03 crore for the Kochi Metro Phase-II (the Pink Line) extension. Complementing this is a broader plan for an Integrated Public Transport system, with ₹136.60 crore earmarked to revive and synchronise the existing transport network, including the metro and bus services. 

The Kochi Metropolitan Transport Authority receives ₹3.05 crore to coordinate these urban mobility activities. Major road developments are also in focus, with ₹5,217 crore allocated for the first phase of reconstructing the MC Road into a four-lane 24 metre-wide highway terminating at Angamali. Furthermore, ₹100 crore is set aside for the second phase of KSTP, which includes the development of the Vypin-Munambam road.

The industrial landscape of Ernakulam is poised for a boost with the proposed Finance Tower at Kochi, an integrated facility with modern infrastructure bringing together major finance and taxation wings, including the GST department, under one roof to strengthen financial governance.

The Petrochemical Park at Kochi is slated for commissioning in 2026-27 through KINFRA with a ₹17 crore allocation, a project expected to mobilise ₹10,000 crore in private investment and create 10,000 jobs. The budget allocated ₹6.50 crore for the activities of India Innovation Centre for Graphene in Kochi.

The budget also provides ₹8 crore for a new Mini Food Park at Kunnukara, ₹2 crore for infrastructure at a new industrial park in Ernakulam district, and reports significant progress on the Kochi-Bangalore Industrial Corridor, with 1,350 acres already acquired for the Kochi-Palakkad stretch.

Health and tourism sectors saw targeted gains, including an increased allocation of ₹30 crore for the Cochin Cancer Centre. A feasibility study for a state-of-the-art Oceanarium in the Cochin-Vypin area receives ₹1 crore, while the Kochi Heritage Project is granted ₹5 crore to preserve the city's historical identity. ₹37.50 crore has been allocated for the Kerala University of Fisheries & Ocean Studies (KUFOS) in Kochi. An amount of ₹20 crore is set apart for the activities of Cochin Technology Innovation Zone.

Ernakulam has also been selected as one of three districts for the first phase of a new Public Hostel Scheme for government college students and will host a Culture and Creativity Incubator, with a budget allocation of ₹2 crore, to support startups in immersive technologies like AR/VR/XR. The budget also envisages a Multipurpose Women Hostel Scheme at a cost of ₹2 crore for providing safe and affordable hostel facility to tribal women working in urban centres and those pursuing Master's Degree and other higher educational courses in Ernakulam.

Additionally, following Thiruvananthapuram, Kochi will see the establishment of a permanent venue for the Kerala Kala Kendra to showcase traditional art forms. ₹14 crore has been set apart for the Muziris Heritage Project and the Spices Route Project, which preserves Kerala's rich heritage and river cruise heritage.

Kochi is part of the newly announced Rare Earth Corridor aimed at making Kerala a permanent magnet hub. Kerala's coastline is rich in rare earth elements such as thorium and scandium, vital for space research, defence, energy, aviation, electric vehicles, drones and medical equipment. The proposed corridor will connect Vizhinjam port to Chavara and onward to Kochi, with a dedicated centre planned near Kerala Minerals and Metals Limited (KMML), Chavara. The project is expected to attract ₹42,000 cr in investment and generate 50,000 jobs.