The Union Budget 2026–27, presented by Nirmala Sitharaman, has drawn a broadly positive response from India Inc., with senior leaders across manufacturing, FMCG, consumer durables, financial services, mobility, aviation, tourism and digital commerce welcoming its emphasis on infrastructure-led growth, domestic manufacturing, MSME empowerment and rising consumption.
With public capital expenditure raised to ₹12.2 lakh crore, continued fiscal consolidation, and targeted reforms across taxation, compliance, technology and skilling, industry leaders say the Budget strengthens confidence in India’s medium- to long-term growth trajectory while aligning closely with the Viksit Bharat 2047 vision.
Manufacturing and Infrastructure: Confidence to Invest and Scale
For manufacturing-led sectors, the sharp focus on infrastructure and domestic production emerged as a key positive.
Sudhanshu Vats, Managing Director of Pidilite Industries, said the Budget reinforces confidence in India’s growth outlook by anchoring it in manufacturing, infrastructure and consumption. The continued push for domestic manufacturing across chemicals, electronics and capital goods, combined with high public capex, is expected to sustain demand across housing, construction and infrastructure-linked industries, directly benefiting building materials and allied ecosystems.
Similarly, Mukundan Menon, Managing Director of Voltas Ltd, described the Budget as future-ready, highlighting initiatives such as India Semiconductor Mission 2.0 and the enhanced outlay for electronics components manufacturing. He noted that investments in urban infrastructure, smart cities and housing would create multiplier effects, boosting employment, incomes and demand for energy-efficient appliances.
From the automotive sector, Tarun Garg said the Budget builds on GST 2.0 reforms with a long-term roadmap for manufacturing, EV batteries, electronics, MSME empowerment and AI-led growth—positioning India as a globally competitive mobility and manufacturing hub.
Consumption, FMCG and Rural Demand
FMCG and consumer-facing companies see the Budget as a step toward reviving demand after years of pressure on household spending.
Saugata Gupta, MD & CEO of Marico Limited, said the emphasis on agricultural productivity, MSME strengthening and logistics infrastructure will support rural and semi-urban demand while improving supply chain efficiency across Tier-II and Tier-III markets. He also highlighted the role of AI-led initiatives and simplified compliance in enabling inclusive, technology-driven growth.
Mayank Shah noted that measures aimed at boosting rural incomes, agriculture and food processing are reassuring for essential consumption categories. Infrastructure development and support for organised retail, he said, will help rebuild consumer confidence and support a steady demand recovery.
Rajiv Kumar added that improved credit access, logistics investments and domestic manufacturing support would help stabilise input costs and strengthen the entire FMCG ecosystem, particularly through better last-mile connectivity.
MSMEs, Credit Flow and Financial Services
A recurring theme across sectors was the Budget’s ecosystem-led support for MSMEs.
Vidit Aatrey, Co-founder and CEO of Meesho, said initiatives such as the ₹10,000 crore SME Growth Fund, deeper integration of TReDS with GeM, and stronger credit guarantees would ease working capital constraints for small sellers, especially in Tier-II and Tier-III markets. He also welcomed investments in digital infrastructure, data centres and cloud capacity as enablers of AI adoption across businesses.
From the banking sector, Vinod Francis said the Budget strikes a balanced approach by pairing infrastructure-led expansion with fiscal prudence. Measures to strengthen credit delivery, deepen financial markets and support MSMEs are expected to fuel entrepreneurship while maintaining macroeconomic stability.
Thomas John Muthoot described the Budget as part of a longer reform journey focused on resilience, self-reliance and inclusive growth, combining infrastructure, digital public systems, skilling and simpler taxation.
Technology, Services and Ease of Doing Business
Enterprise and services leaders welcomed reforms aimed at reducing friction and encouraging innovation.
Anil G. Verma said the Budget strengthens the foundations of a future-ready economy through infrastructure, logistics, MSME support and technology investments. Measures such as allowing SEZ units to sell domestically, easing tax treatment for cloud and GCC investments, and pushing emerging technologies were seen as positive for enterprise-led growth.
Sudhir Sitapati highlighted the decision to allow MAT credit set-off up to 25% under the new tax regime, calling it a meaningful cash-flow improvement that frees capital for reinvestment into growth.
Tourism, Aviation and Regional Growth
Tourism and aviation leaders said the Budget recognises these sectors as engines of balanced regional development.
Aloke Singh welcomed the focus on destination-led infrastructure, medical tourism, heritage and eco-tourism, which he said would stimulate air connectivity to Tier-II and Tier-III cities and support the next phase of domestic aviation growth.
Manoj Bhat added that linking destination development with skilling and workforce creation shifts the focus from short-term demand to building a sustainable tourism ecosystem.
Overall Outlook
Across sectors, industry leaders see Union Budget 2026–27 as a confidence-building Budget that prioritises execution, scale and long-term capacity building. With sustained infrastructure investment, manufacturing depth, MSME empowerment, rising disposable incomes and a push toward technology-led productivity, India Inc. believes the Budget lays a strong foundation for inclusive, consumption-driven growth.
As Sudhanshu Vats summed up, the Budget provides the confidence for companies to invest, innovate and scale alongside India’s long-term economic vision—marking another step forward on the path to Viksit Bharat 2047
