New Delhi: The industry has welcomed the Union Budget 2026-27 with optimism. Experts believe the budget is designed not for short-term popularity but to ensure long-term economic strength, investment, and the goal of a developed India by 2047. It places special emphasis on sectors such as MSMEs, manufacturing, infrastructure, logistics, and tourism.
Ashok Batra, Chairman of the Indirect Tax Committee at PHDCCI, said the key highlight of this budget is its focus on growth. He noted that the budget avoids populism and is based on structural reforms and a long-term vision. The announced ₹10,000 crore SME Growth Fund will provide equity support to small industries, strengthening the MSME sector. This will help MSMEs face domestic challenges and take advantage of free trade agreements with countries like the UK and EU, making them competitive in global markets.
He also mentioned that bringing CPSUs within the payment system framework will significantly ease liquidity issues for MSMEs, ensuring timely payments and enabling better business focus.
Kamall Bali, President and MD of Volvo Group India, described the budget as inspiring and positive. He pointed out that manufacturing remains India’s biggest challenge, currently accounting for about 14% of GDP. The budget shows a strong focus on both sunrise and traditional manufacturing industries. Increasing manufacturing’s share to 25% of GDP could have a multiplier effect on employment, exports, and the balance of payments.
Aman Kansal, Director at KMG Ventures, highlighted the government’s dedicated focus on promoting manufacturing within India, especially in sectors like biopharma, chemical pathways, and cluster development. The ₹10,000 crore provision for these sectors, along with initiatives like PM Gati Shakti and the National Logistics Policy, will strengthen logistics infrastructure and boost India’s self-reliance.
Shivang Gupta, member of the Assocham J&K Council, said the absence of major changes in income tax slabs offers relief to the middle class. The budget also prioritises tourism, especially mountain trails and hiking industries. The proposal to train 10,000 to 20,000 tourist guides in Jammu and Kashmir is a significant step for employment and local economy. The government’s focus on improving connectivity is also commendable.
Manik Batra, Chairman of the Assocham J&K Council, described the budget as balanced and visionary. He underscored that MSMEs form the backbone of the Indian economy, contributing nearly 30% to GDP. The ₹10,000 crore growth fund, ₹2,000 crore top-up, and enhanced global market linkages will further strengthen this sector. Provisions of ₹10,000 crore for biopharma and ₹40,000 crore for Semiconductor Mission-2 mark major steps toward making India a manufacturing hub.
He added that new freight corridors, seven rail corridors, waterway development, and revival of 2,000 old industrial zones will accelerate infrastructure growth and job creation.
The budget also focuses on the health sector by reducing taxes on several medicines, upgrading AYUSH pharmacy, and emphasising research and development. In tourism, promoting spiritual and heritage tourism, developing 10-15 archaeological sites, and training 10,000 tourist guides in collaboration with IIMs will strengthen both employment and GDP.
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