Arti Bali
New Delhi, Feb 1 (.) The union Budget 2026-27 has received a largely positive response from industry leaders, who praised its focus on infrastructure, local manufacturing, and measures to support Micro, Small and Medium Enterprises (MSMEs).
Commenting on the Budget, Pankaj Chadha, Chairman of EEPC India, said,”The Budget continues the government’s thrust on infrastructure development, reforms, and local manufacturing, with additional measures to boost the MSME sector. The record Rs 12.2 lakh crore capital expenditure proposed for FY27 is set to further upgrade the country’s infrastructure and help lower transportation costs. The reform agenda is expected to pick up pace, adding to the ease of doing business for industry. Measures like a single digital window for customs clearance and allowing SEZ units to sell in the domestic tariff area at concessional duty are very welcome steps.”
Chadha further highlighted the significance of initiatives aimed at improving financing for businesses. “The move to mandate TReDS as the transaction settlement platform for all CPSE purchases and linking it with GeM will help MSMEs realize payments faster and access competitive financing rates,” he noted. He also welcomed proposals such as the Rs 10,000 crore SME Growth Fund, the Scheme for Container Manufacturing, and the establishment of dedicated rare earth corridors, calling the Budget “growth-oriented and aimed at providing a big impetus to local manufacturing.”
Echoing similar sentiments, Nikhil Mansukhani, Managing Director of MAN Industries, said,”The union Budget sends a strong and reassuring signal to India’s manufacturing sector, reaffirming the government’s intent to position India as a globally competitive production and export hub. Simplifying customs procedures and rationalising duties will reduce cost inefficiencies, improve port turnaround times, and enhance supply chain reliability. Predictable trade policies and faster clearances will allow Indian manufacturers to scale exports and attract global customers, aligning with the ‘Make in India for the World’ vision.”
Finance Minister Nirmala Sitharaman defended the Budget against criticisms from the Opposition, saying it balances economic growth, fiscal consolidation, and social welfare. Speaking at a press conference in New Delhi, she said,”This Budget is aimed at ensuring policy continuity, supporting investment, and creating conditions for long-term, inclusive growth. Fiscal consolidation is a means to ensure sustainable growth while keeping inflationary pressures under control.”
Senior finance ministry officials emphasised that public investment remains a key driver of growth, with capital expenditure aimed at generating employment and crowding in private investment.
Sitharaman also stressed that allocations for the welfare of marginalized sections, farmers, and women continue to be central to government policy, countering claims that the Budget favors corporates.
With India navigating global uncertainties and geopolitical risks, the Finance Minister described the Budget as a resilient roadmap for sustained growth, infrastructure development, and enhanced manufacturing capabilities over the next decade.
On concerns about revenue mobilization, Sitharaman said the government was closely monitoring tax collections and would rely on a combination of improved compliance and economic growth to strengthen revenues. She rejected suggestions that the Budget ignored revenue-side challenges, saying, “Our effort has been to keep the tax regime predictable and stable, while improving efficiency in collection.”
The union Budget 2026-27 has also come against the backdrop of a mixed economic environment, with India remaining one of the fastest-growing major economies even as global growth prospects remain uncertain due to geopolitical tensions and volatile financial conditions.
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