FTCCI welcomes Union Budget 2026–27 as Progressive and Stability-Focused; Seeks stronger push for Manufacturing, Infrastructure and Tourism

Hyderabad, February 1, 2026: The Federation of Telangana Chambers of Commerce and Industry (FTCCI) has termed the Union Budget 2026–27 as progressive and a continuity-driven Budget with no major surprises.

Reacting to the Union Budget presented in Parliament on Sunday morning, Ravi Kumar, President, FTCCI, in the presence of industry veterans, said the Budget reflects a strong emphasis on economic stability, continuity and resilience, especially in the context of prevailing global geopolitical uncertainties. He noted that the government has struck a careful balance between growth and fiscal prudence.

A major highlight of the Budget, he said, is the strong push given to the MSME sector, with the announcement of a ₹10,000 crore MSME Growth Fund and an additional ₹2,000 crore fund to support micro enterprises, which will significantly improve access to capital and boost entrepreneurship.

Another key feature of the Budget is the renewed thrust on ‘Made in India’ and domestic manufacturing. Ravi Kumar welcomed the launch of the “Biopharma Shakti” initiative, with an outlay of ₹10,000 crore over five years, aimed at strengthening India’s biopharma ecosystem. He also appreciated the continued focus on the Semiconductor Mission, which is critical for India’s long-term industrial and technological competitiveness.

The tourism sector, he said, has also received a positive push through several initiatives, though more structural reforms are still required.

FTCCI welcomed the government’s proposal for high-speed and semi-high-speed rail connectivity linking Hyderabad with major economic centres such as Bengaluru, Pune and Chennai. Such corridors, Ravi Kumar said, will enhance labour mobility, supply-chain efficiency, regional integration and offer a sustainable alternative to short-haul flights. He reiterated FTCCI’s long-standing demand for decentralisation of industries to Tier-II and Tier-III cities.

Speaking from a capital markets perspective, K.K. Maheshwari, Senior Vice President, FTCCI, said the MSME Growth Fund and funding support for micro enterprises are positive steps. He observed that the Budget reinforces capital market stability, and added that deepening the corporate bond market is the next critical reform needed to channel long-term capital into growth sectors.

The surprise increase in STT on F&O risks curbs capital market optimism at a time when sentiment was turning positive, he added.

Srinivas Garimella, Vice President, FTCCI, stated that the Finance Minister has laid strong emphasis on economic stability. He noted that after the GST rationalisation announced in October, the industry did not expect major changes on that front.

However, the Budget offers several positives such as support to MSMEs, manufacturing, Atmanirbhar Bharat and capacity building initiatives. He also emphasised the importance of tool rooms, calling them critical enablers for MSMEs in manufacturing, engineering, auto components, electronics, aerospace, defence and precision industries.

At the same time, industry leaders pointed out some missed opportunities. The Budget, Garimella said, fell short on TDS rationalisation, where the industry had expected consolidation into 5–6 rate structures. Similarly, expectations that 3–4 additional sectors would be added to the PLI scheme, over and above the existing 14 sectors, were not met.

Prem Chand Kankaria, Chairman, Banking, Finance, Insurance & Capital Markets Committee, FTCCI, said the Budget has given a strong thrust to skill development, which will support long-term employability. However, he expressed disappointment over the lack of enhanced capital outlay for manufacturing and lower-than-expected allocation for infrastructure, both of which are crucial for accelerating private investment and industrial growth.

P. Krishna, Chairman, Industrial Development Committee, FTCCI, appreciated the Budget’s focus on ‘Made in India’ products and self-reliance, enhanced FDI in critical minerals, cluster-based industrial development, and the continued boost to the semiconductor industry. He also welcomed the indirect tax exemptions extended to select sectors, stating these measures will improve industry competitiveness and investment sentiment.

Quoting the Economic Survey, Mohd. Irshad Ahmed, Chairman, GST & Customs Committee, FTCCI, said that while most global economies are struggling, India continues to perform strongly due to sustained domestic consumption.

He noted that GST rationalisation has ensured more money in the hands of consumers, supporting demand. Despite geopolitical challenges, India’s economy remains robust due to controlled inflation and rising domestic consumption. He added that the Union Budget 2026 sustains the momentum created by the 2025 Budget and provides stability in what is widely considered a challenging economic year.

He also welcomed the boost for civil aviation aircraft components and spare parts, and the customs duty exemptions provided to stressed sectors such as submarine cables, leather and textiles, which were impacted by tariff-related issues.

Commenting on the tourism sector, D. Ramchandram, Co-Chair, Tourism Committee, FTCCI, said that while the Budget introduces several positive initiatives—such as the seaplane push, establishment of hospitality institutions, upgrading hotel management institutes, training of 10,000 tourist guides, creation of five regional hubs for medical tourism, promotion of heritage and archaeological sites, adventure tourism, Buddhist circuits, and relief through TCS for Indian travellers—it still falls short of industry expectations.

He noted that key demands such as industry status for tourism, GST rationalisation, a comprehensive National Tourism Policy, targeted MSME support, tourism-specific skill development, and focused support for Telangana tourism were not addressed.