The Kerala State Budget 2026 has introduced several new initiatives aimed at strengthening the state's film sector. The key announcements include granting industry status to the film sector and establishing various institutions in the names of eminent artists and literary figures.

The government has decided to set up the J.C. Daniel International Film City – 'Chithranagaram' in Kochi. Along with this, the film industry will be granted industry status. An allocation of ?100 crore has been made for this initiative.

A Cultural Park named after renowned writer and literary icon M. T. Vasudevan Nair will be established in Kozhikode. The objective is to preserve and promote Kerala's unique artistic and cultural heritage. The project has been envisioned with an outlay of ?50 crore.

The budget also announced plans to establish a memorial for actor and filmmaker Salim Kumar in recognition of his significant contributions to Malayalam cinema.