Reactions: Union Budget 2026

“Union Budget 2026–27 clearly reinforces the Government’s long-term commitment to strengthening India’s manufacturing-led growth model, with Atmanirbharta firmly positioned as the guiding North Star of economic policy. The focused push to scale manufacturing across seven strategic and frontier sectors, combined with sustained investments in industrial corridors, logistics efficiency, and workforce upskilling, will deepen domestic value creation and enhance productivity across the industrial ecosystem.
As India advances towards Viksit Bharat, the Budget takes a decisive step in promoting design-led, technology-driven and value-added manufacturing, while pragmatically acknowledging the need for deep integration with global supply chains. For manufacturing-intensive sectors such as bath and lighting, where precision, quality, sustainability and scale are critical, the focus on technology adoption and the development of Tier 2 and Tier 3 cities as integrated manufacturing hubs will unlock fresh demand, create skilled employment, and drive regional industrialisation,”
Rajesh Mehra, Promoter & Director, Jaquar Group

“We welcome the 2026–2027 Union Budget’s strong and sustained emphasis on urban infrastructure and capex-led growth. With a record-effective capital expenditure outlay of ₹17.14 lakh crore and continued prioritisation of urban development, the Budget reinforces the government’s commitment to transforming India’s metropolitan centres through better connectivity, upgraded civic systems and accelerated redevelopment. These investments significantly enhance the livability, accessibility and long-term value of urban assets.
The substantial increase in total transfers to states ₹25.43 lakh crore in FY27 provides crucial fiscal capacity for state and city governments to strengthen urban renewal efforts, particularly in larger cities where redevelopment of aging housing stock is urgent. This resource flow, combined with steady support for centrally sponsored urban schemes, will help cities like Mumbai address density challenges, modernise civic infrastructure and deliver well-integrated, sustainable real estate growth.
Overall, the Budget offers stronger policy continuity, fiscal visibility and long-term confidence for redevelopment-focused investments across India’s urban landscape.  
Mahek Modi, Whole Time Director & Chief Financial Officer, Modis Navnirman Limited
 

“The Finance Minister has presented a pro-growth, development-focused Budget aligned with the Prime Minister’s vision of a competitive, resilient, and self-reliant India. Increased spending on Infrastructure, Manufacturing, and Defence—along with continued emphasis on roads, logistics, and construction—is expected to accelerate economic growth and drive demand in the commercial vehicle sector. The Budget also advances initiatives in AI, rare earths, and energy transition while supporting key sectors such as healthcare, education, agriculture, housing, and electrification. Overall, it sustains growth momentum and strengthens India’s long-term economic trajectory.”
Dheeraj Hinduja, Chairman, Ashok Leyland

"The Budget’s strong thrust on infrastructure through industrial corridors, manufacturing hubs, high-speed rail and dedicated freight corridors creates a powerful foundation for long-term real estate demand. The proposed ₹5,000 crore allocation per City Economic Region over five years in Tier II and III cities, including temple towns, is a significant catalyst for planned urban expansion. These measures will directly translate into improved connectivity, stronger employment clusters and greater investor confidence, driving sustained growth across residential, commercial, retail and logistics segments. Collectively, these initiatives will help transform emerging cities into viable economic centres and position real estate as a key enabler of India’s broader economic development."
Lalit Parihar, Managing Director, Aaiji Group, a Dholera-based real estate firm

“The Budget’s emphasis on infrastructure-led growth, development of industrial corridors and manufacturing hubs, data centres, high speed rail corridors, dedicated freight corridor, recycling of significant real estate assets of CPSEs through dedicated REITs, Rs 5000 crore allocation per city economic regions (CER) over 5 years in tier 2&3 cities including temple towns are step towards amplifying the potential of these cities to deliver the economic growth. The consequent impact of this will propel the growth of real estate across categories and pave the way for comprehensive development of the Indian economy.”
Samir Jasuja, founder and CEO, PropEquity

"Budget 2026 is a testament to our nation's resilience and commitment to growth, even amidst global uncertainty. With a significant increase in capital expenditure to ₹12 lakh crore and energy spending to ₹1 lakh crore, we're laying the foundation for a sustainable future. Focus on renewable energy growth, grid modernization, and energy security will accelerate India's energy transition. Atmanirbhar Bharat push with rationalizing policies, and incentivizing innovation through PLI and tax benefits for domestics R&D and manufacturing. Bond market reforms will further boost our economic momentum. This inclusive and comprehensive budget ensures we're on course for continued growth and prosperity" 
Girish Tanti, Co-founder & Vice Chairman - Suzlon Group and Chairman of Indian Wind Turbine Manufacturers Association (IWTMA)

“The announcement of tax holiday up to 2047 for foreign companies providing cloud services globally is expected to accelerate the investment momentum in data centres and strengthen India's position in Asia-Pacific. The creation of more data centres, in turn, is expected to spur allied investments in power (including renewables), real estate and optical fiber infrastructure, thus lending traction to the broader digital-infrastructure investment cycle.”
Anand Kulkarni, Director, Crisil Ratings

“The 2026–27 Budget underscores the importance of strengthening grassroots incomes as a foundation for India’s growth. Continued focus on farmers, weavers and small enterprises reflects recognition that stable household incomes and access to formal finance are essential for sustaining rural demand. Initiatives such as the Bharat Vistaar AI platform and the rollout of AgriStack can improve productivity, reduce information gaps and enable more data-backed lending. Investments in rural infrastructure, agriculture-linked value chains, and targeted support for high-value crops, livestock and natural farming further expand livelihood opportunities.
From a financial sector perspective, the Budget signals intent rather than immediate relief. Measures such as the ₹10,000 crore SME Growth Fund, expanded use of TReDS, higher RIDF allocations and the proposed Banking for Viksit Bharat committee indicate a willingness to strengthen rural credit delivery. Sustained and well-calibrated policy support will be critical for institutions like Dvara KGFS to continue providing responsible, last-mile financial solutions.”
Murty LVLN, CEO, Dvara KGFS

"The Union Budget presents a fiscal prudent and clear roadmap for inclusive, sustainable, and tech-led growth, especially job creation, agricultural productivity and incentives for data centers. The focus on strengthening NBFCs, deepening the corporate bond market, and improving credit flow to MSMEs will help extend timely and affordable finance to the last mile and small businesses.
Building on Lakhpati Didi programme and Self-Help Entrepreneur (SHE) Marts will help women transition to enterprise ownership. Community-owned retail outlets run by self-help group entrepreneurs will help to develop a resilient and modern retail network at a time traditional retailers are facing fierce competition from large e-commerce giants.”
Shaji Varghese, Chief Executive Officer, Muthoot FinCorp Ltd.

“Union Budget 2026 delivers a structurally anchored, credit-led growth framework for MSMEs while maintaining fiscal discipline. Key initiatives such as the ₹10,000 crore SME Growth Fund, the ₹2,000 crore top-up to the Self-Reliant India Fund, mandatory routing of CPSE–MSME payments through TReDS, integration of GeM with TReDS, and the introduction of a dedicated credit guarantee for invoice discounting directly address long-standing gaps in MSME financing. The enabling of securitisation of TReDS receivables and the Corporate Mitras initiative further strengthen liquidity, risk sharing, and compliance readiness across the MSME ecosystem. Together with the restructuring of public sector NBFCs like PFC and REC, the Budget meaningfully re-engineers MSME credit delivery and enhances the role of NBFCs in supporting sustainable economic growth.”
Shachindra Nath, Founder and Managing Director at UGRO Capital.
 

“A meaningful step towards deepening India’s corporate and municipal bond markets by proposing a market-making framework, introducing new derivative instruments, and strengthening incentives for large municipal bond issuances while continuing support under the AMRUT scheme. These measures are expected to improve secondary market liquidity, broaden investor participation, and enhance price discovery, particularly for long-tenor and sub-sovereign issuances. Importantly, the Government’s continued emphasis on fiscal prudence and calibrated borrowing is reassuring for debt markets, as it helps contain crowding-out risks and anchors investor confidence. Together, these initiatives should encourage greater bond market participation by India Inc. and urban local bodies, while reinforcing the role of bonds as a sustainable and diversified funding avenue.”
Shubham Jain, Group CEO, Infomerics Valuation and Rating Ltd.

“The Union Budget 2026–27 reflects strong fiscal discipline with a fiscal deficit of 4.3% while significantly increasing public capital expenditure to ₹12.2 lakh crore. This balanced approach towards growth and stability strengthens consumer confidence and long-term investment sentiment. The ₹10,000 crore SME Growth Fund is particularly encouraging for businesses across the value chain.”
Joy Alukkas, Chairman and MD, Joyalukkas Group

"This is a growth-oriented and inclusive Budget that places farmers, rural India and youth at the centre of the development agenda, while maintaining fiscal prudence and macroeconomic stability. The Prime Minister Dhan-Dhaanya Krishi Yojana, covering 100 districts and benefiting nearly 1.7 crore farmers, along with the enhancement of KCC limits from ₹3 lakh to ₹5 lakh, will significantly strengthen rural credit access and improve productivity across the agri value chain.
The proposal to establish SHE-Marts (Self-Help Entrepreneur Marts) and at least one girls’ hostel in every district, along with support for women-led FPOs, will expand market access and create greater opportunities for women entrepreneurs. The scheme supporting 5 lakh women, SC and ST first-time entrepreneurs with loans up to ₹2 crore, along with expanded MSME credit guarantees unlocking ₹1.5 lakh crore, will accelerate grassroots entrepreneurship and deepen financial inclusion. The expanded MSME credit guarantee, unlocking ₹1.5 lakh crore and targeted policy support, will significantly strengthen small businesses, boost job creation, and accelerate grassroots economic growth across the country. The proposed High-Level Committee on Banking for Viksit Bharat will further strengthen the financial sector, enabling banks to support agriculture, MSMEs and infrastructure-led growth. Emphasis on AI, a renewed focus on education, and simplification of tax compliance are other notable aspects of the budget. In short, there is a clear balance between technology and tradition"
Dr. K Paul Thomas, MD & CEO of ESAF Small Finance Bank

“We welcome the Union Budget and its clear emphasis on strengthening the cooperative backbone of India’s agricultural economy. Measures such as extending tax deductions to cattle feed supplied by primary cooperatives and rationalising inter-cooperative dividend taxation go beyond short-term relief and address structural challenges faced by dairy farmers. For the dairy sector, farm-level cost stability and financially resilient cooperatives are essential to ensuring consistent milk productivity, quality assurance and long-term supply security. As a dairy company built on deep farmer partnerships, we believe these reforms will encourage greater investment in productivity, animal nutrition and infrastructure at the grassroots level. A stronger cooperative ecosystem ultimately creates a more sustainable, transparent and future-ready dairy value chain-one that can support India’s growing demand for high-quality, value-added dairy products.”
D r. K. Rathnam, Whole-time Director and Chief Executive Officer, Milky Mist Dairy Food Limited.

“The Union Budget brings reassurance for patients and families at a time when healthcare costs are rising and lifestyle-related illnesses are becoming more common, especially in Tier 2 and Tier 3 cities where access to specialised care remains limited. The focus on strengthening the biopharma ecosystem is particularly timely, as conditions such as cancer, diabetes, and autoimmune disorders often require long-term and advanced treatment. By encouraging domestic manufacturing of biologics and biosimilars, the Budget supports better availability and affordability of these therapies, enabling hospitals to deliver advanced care closer to patients’ homes.
Building on this, the Budget proposes exemption from basic customs duty on 17 lifesaving drugs and medicines, including key cancer therapies, and adds seven rare diseases for exemption on personal imports of drugs, medicines, and specialized foods. This move will provide tangible financial relief to families managing serious and chronic illnesses, especially in smaller cities where treatment often involves travel and additional expenses. By reducing the cost burden, patients can access care more consistently without compromising on quality.
In parallel, the plan to expand the allied health workforce over the coming years will strengthen hospitals’ ability to provide comprehensive care. Improved access to trained professionals across diagnostics, critical care, and mental health services will help ensure consistent quality of care and better patient outcomes.
The proposal to develop regional medical tourism hubs in partnership with the private sector reflects a long-term vision for equitable healthcare development beyond metro cities. This initiative not only raises care standards but also broadens access to quality and affordable treatment for both domestic and international patients.
Together, these measures mark a significant step toward a healthcare system that is more accessible, affordable, and responsive to patient needs across regions, while providing meaningful relief to those battling cancer and rare diseases.”
Dr Dharminder Nagar,Co-Chair, FICCI Health and Services and MD, Paras Health

“We see the Union Budget 2026 as a very encouraging step for the future of healthcare and biopharma in India. It creates the kind of stable, long-term ecosystem the industry needs to plan boldly and invest with confidence. With the Rs 10,000 crore Biopharma Shakti programme, stronger research, expanded clinical trial networks, and more robust regulatory systems, the budget clearly puts innovation and quality manufacturing at the heart of the national agenda. For Akums, this gives us the confidence to deepen our R&D pipeline, scale up world-class capabilities and bring advanced therapies to patients more quickly and affordably.
We also welcome the emphasis on traditional medicine with the proposal to set up three new All India Institutes of Ayurveda, alongside upgrades to AYUSH pharmacies and drug testing labs, which will strengthen certification standards and make Ayurveda more accessible across the country. When combined with wider clinical trial access beyond major cities, increased number of skilled allied health care professionals and patient-friendly measures like duty exemptions on critical and rare disease medicines, these steps help build a stronger, diversified and more resilient and integrated healthcare ecosystem. Over time, they can support stronger global partnerships, improve access and affordability for patients, and position India as a trusted global hub for integrated healthcare solutions.”
Arushi Jain, Director of Akums Drugs & Pharmaceuticals Ltd.

“Budget 2026 sends a strong signal toward employment generation, technology-led growth, and support for labour-intensive sectors, priorities that directly benefit FMCG and consumption-driven industries. The focus on AI missions, skilling, and the Education-to-Employment initiative will strengthen frontline productivity and formal workforce models across sales and distribution. Investments in manufacturing, logistics, and services will further enable faster and more efficient General Trade expansion. The push to promote women entrepreneurs creates a meaningful opportunity for more women-led businesses to scale sustainably across India.”
Anjana Ghosh, MD, Scale Sherpas
 
“The focus on growing the orange economy recognises that creativity and cultural knowledge are becoming economic assets. As this ecosystem scales, preserving lineage, family heritage, context, and ancestral wisdom while making it credible and accessible for modern professionals will be key to sustaining its growth.”
Arvind Subbarao, Co-Founder & CEO, iMeUsWe

“The Union Budget 2026–27 sets a clear direction for India’s long term growth, with a strong focus on capital investment, manufacturing competitiveness and technology led development. Continued high spending on infrastructure strengthens confidence in execution and supports progress across transportation, urban development and logistics. The emphasis on high speed rail, alongside roads, metros, ports and urban infrastructure, signals a move towards next generation connectivity. Policy continuity on clean energy and grid strengthening supports energy security and transition, while the focus on advanced facilities such as semiconductors, electronics, data centres and pharmaceuticals builds domestic capability. Measures supporting hydrocarbons and chemicals, and metals and mining including rare earth corridors, strengthen critical supply chains. Overall, the Budget underlines the importance of delivery quality alongside investment scale, and Tata Consulting Engineers remains committed to converting this policy intent into future ready assets for the nation.”
Amit Sharma, MD & CEO, Tata Consulting Engineers

“The Union Budget 2026–27 sends a strong and reassuring signal for India’s long-term growth, anchored in fiscal discipline and a sustained push on infrastructure-led development. The continued emphasis on capital expenditure and destination-focused investment provides a solid structural framework for the expansion of tourism and, by extension, the civil aviation sector.
The Budget’s focus on strengthening medical value tourism and destination development is particularly relevant for aviation, as it creates high-frequency, purpose-driven inbound travel, especially from regions such as the Middle East and Southeast Asia. At the same time, the emphasis on developing heritage, archaeological, and eco-tourism destinations across multiple states will stimulate demand for air connectivity to Tier-2 and Tier-3 cities, supporting the next phase of domestic aviation growth.
Importantly, the parallel focus on skilling and professionalising the hospitality and tourism workforce addresses the capacity and service-quality requirements needed to sustain this growth. Taken together, these measures create an ecosystem in which airlines like Air India Express are well positioned to play a meaningful role.”
Aloke Singh, Managing Director, Air India Express

“I commend Finance Minister Nirmala Sitharaman on the Union Budget 2026–27 for recognising the strategic importance of medical tourism in India’s healthcare growth story. The announcement of five regional medical tourism hubs is a strong and timely step that will enhance India’s position as a global medical value travel destination. By integrating modern healthcare with AYUSH systems, diagnostics and rehabilitation, the budget lays the foundation for a more coordinated and patient-centric ecosystem. The emphasis on private sector participation and strengthening healthcare capacity will improve service delivery and scalability. While further policy support over time can accelerate global patient inflows, the budget clearly demonstrates a forward-looking approach to building a competitive and resilient medical tourism ecosystem that contributes to economic growth.”
India’s MVT sector has grown steadily over the years, and cities like Hyderabad, Delhi, Chennai, Mumbai and Bengaluru are already well-positioned to scale as global healthcare destinations. With the right execution and private-sector partnership, this initiative can significantly strengthen India’s leadership in global medical tourism.”
Shaaz Mehmood, Founder, Medijourn Solutions Private Limited
 

“The Union Budget 2026 continues the government’s push towards infrastructure-led growth, with a strong capital expenditure commitment of ₹12.2 lakh crore. What stands out for us is the focus on building well-planned cities beyond the metros. The creation of city economic regions, with ₹50,000 crore allocated per region over five years, will significantly improve connectivity and urban infrastructure in Tier II and Tier III markets, opening up new opportunities across residential, commercial and mixed-use developments.
The proposed Infrastructure Risk Guarantee Fund is a practical step that can ease construction-phase risks and encourage greater private investment in large, long-gestation projects. We also see this as a positive signal for the commercial real estate market. The proposed tax holiday for Global Capability Centres (GCCs) is expected to generate demand for large-scale data centres and facilitate local employment. 
Overall, these measures support the broader vision of Viksit Bharat by helping create more sustainable, liveable and future-ready cities for both developers and homebuyers.”
Ashish Raheja, CEO & MD, Raheja Universal

“This Budget brings together multiple strands of India’s manufacturing and technology growth story in a balanced and forward-looking manner. The ₹40,000 crore allocation for India Semiconductor Mission 2.0 and the enhanced outlay for electronics components manufacturing point to a clear focus on scale, depth, and ecosystem development. When seen alongside targeted support for MSMEs through a ₹10,000 crore growth fund, the policy framework addresses both large-scale manufacturing and the strength of the supplier base. By aligning capital support with capability building and innovation, the Budget creates a solid foundation for sustainable, technology-led growth and reinforces India’s ambition to emerge as a globally competitive electronics manufacturing hub.”
Benjamin Lin, President, Delta Electronics India

“What stands out in the Union Budget 2026 is the scale, consistency, and seriousness with which the government is approaching electronics and advanced manufacturing. The launch of India Semiconductor Mission 2.0 with an outlay of ₹40,000 crore, along with the expansion of the electronics components manufacturing scheme to a similar level, clearly signals a long-term commitment to building strong domestic capabilities. Importantly, the focus goes beyond manufacturing capacity to include full-stack design, development of Indian intellectual property, skill creation, and stronger supply-chain resilience. This reflects a practical understanding of how globally competitive technology ecosystems are built. Such clarity and continuity in policy direction give industry the confidence to plan long-term investments, deepen local value addition, and steadily move India up the electronics manufacturing value chain.”
Niranjan Nayak, MD, Delta Electronics India