Union Budget 2026–27: Industry Leaders Welcome Consumption Push, Infrastructure Boost and Reform-First Growth Vision

Corporate India Sees Strong Continuity Towards Viksit Bharat, Rail Modernisation, Energy Efficiency and Trust-Based Governance

NEW DELHI (India CSR): Corporate India and industry stakeholders have broadly welcomed the Union Budget 2026–27, describing it as a forward-looking roadmap anchored in sustained public investment, infrastructure-led development, manufacturing scale-up, and a decisive shift towards people-first, consumption-driven growth aligned with the vision of Viksit Bharat.

From FMCG and logistics to rail infrastructure, renewable energy, real estate and MSMEs, business leaders said the Budget provides long-term clarity through higher capital expenditure, stronger support for industrial clusters, technology-backed innovation, and compliance simplification. Several experts also highlighted the government’s emphasis on rail corridors, multimodal connectivity, energy efficiency, AI-led productivity, and trade facilitation reforms as key drivers of competitiveness and inclusive growth.

The Budget’s continued focus on rural demand generation, formalisation of supply chains, green manufacturing incentives, and trust-based governance has been seen as structurally positive for India’s next phase of expansion across both urban and emerging Tier II and Tier III markets.

Industry reactions reflect optimism that the reform-first approach, backed by fiscal prudence and execution focus, will strengthen India’s infrastructure backbone, accelerate modernisation, support sustainable development, and build long-term capacity as the country advances towards an Atmanirbhar Bharat.

People-First Growth Strategy Anchored in Viksit Bharat: Saugata Gupta, MD & CEO of Marico Limited

The Union Budget 2026–27 lays out India’s growth strategy with a clear focus on sustained public investment, manufacturing scale-up, support to MSMEs, employment generation and fiscal consolidation, said Saugata Gupta, MD & CEO of Marico Limited. He described the Budget as a decisive shift towards people-first, consumption-led growth aligned with the vision of Viksit Bharat.

Mr. Gupta noted that the continued emphasis on enhancing agricultural incomes through higher productivity and value addition is structurally positive for rural and semi-urban demand. This, he said, will create sustained tailwinds for consumption across India’s heartland markets.

Highlighting the thrust on strengthening MSMEs and legacy industrial clusters, Gupta said improved access to credit and deeper formalisation will further improve domestic supply chains, particularly across Tier II and Tier III markets. He added that these measures will reinforce India’s manufacturing and distribution ecosystem.

The Budget’s public capital expenditure target of Rs. 12.2 lakh crore and continued investments in freight corridors, inland waterways and multimodal logistics are expected to enhance distribution networks. Gupta said these initiatives will improve supply chain efficiencies and enable faster scale-up of emerging consumption hubs.

The Budget positions technology-backed artificial intelligence as a powerful driver of inclusive growth, Gupta said. Initiatives such as Bharat VISTAAR are an encouraging step towards boosting farm productivity, while the expanded AI Mission and enhanced R&D focus are set to accelerate innovation and services across sectors.

Gupta also welcomed the simplification of compliances, saying it reflects the government’s intent to build trust-based governance and reduce friction for businesses.

Overall, Gupta said the Budget reflects a consistent reform-first approach anchored in fiscal prudence, infrastructure-led development and inclusive growth. He added that it creates a supportive ecosystem for long-term, consumption-driven growth across both urban and rural India, with emphasis firmly on execution, competitiveness and long-term capacity building.

Rail Infrastructure Ecosystem Gets Strategic Clarity: Pandrol Rahee Technologies

Pradeep Khaitan, Managing Director, Pandrol Rahee Technologies, said Union Budget 2026–27 provides strong continuity, strategic direction and long-term clarity for India’s rail infrastructure ecosystem. He welcomed the announcement of seven high-speed rail corridors and a new east–west Dedicated Freight Corridor.

Khaitan highlighted the planned expansion of the Kavach train protection system to 18,000 km, along with track capacity augmentation and induction of modern rolling stock. He said this will significantly accelerate adoption of advanced fastening systems, vibration control solutions and high-performance track technologies.

He said the Budget creates a forward-looking environment for rail infrastructure companies focused on safety, reliability and indigenisation. Pandrol Rahee, he added, is already contributing to this vision through successful trials of modern fastening systems for high-speed and heavy axle load applications.

Energy Efficiency Becomes Central Pillar of Competitiveness: AEEE

The Alliance for an Energy Efficient Economy (AEEE) welcomed Budget 2026–27, calling it an inflection point in India’s journey towards Viksit Bharat. Dr Satish Kumar, President and Executive Director, said the Budget reflects a shift from capacity expansion to systemic efficiency and productivity.

Dr Kumar said the emphasis on smart metering, grid modernisation and Battery Energy Storage Systems strengthens the foundation of a flexible and reliable power system where every unit of energy delivers higher economic value.

Measures to revive 200 legacy industrial clusters and the Rs. 10,000 crore SME Growth Fund, he said, provide critical support for scaling MSMEs while embedding energy and resource efficiency into their growth pathways.

Dr Kumar said the Budget sends a clear signal that efficiency is no longer peripheral but central to competitiveness and resilience. He urged stakeholders to accelerate adoption of energy-efficient technologies to decouple growth from emissions.

Alstom India Welcomes Rail Outlay and Mobility Push

Olivier Losion, Managing Director of Alstom India, welcomed the progressive Budget 2026, saying the focus on rail infrastructure and seven new high-speed rail corridors will significantly boost passenger mobility and strengthen the economic ecosystem.

Losion said infrastructure development in Tier 2/3 cities and tourism initiatives will enhance national railway and urban mobility. He noted railways will be a key driver for national development given the outlay of Rs. 2.78 lakh crore in FY27.

Real Estate Sector Sees Support for Emerging Towns: Inspira Realty

Aayush Madhusudan Agrawal, Founder & Director, Inspira Realty, said the Budget reinforces inclusive urbanisation through City Economic Regions in tier-two and tier-three cities. He said investments in logistics corridors and connectivity will improve access to employment centres.

Agrawal welcomed the Infrastructure Risk Guarantee Fund as a timely measure to improve access to construction finance and reduce execution risks, especially for affordable and mid-segment housing.

He added that major tax incentive changes for homebuyers would have been a welcome move, but that was a miss for the industry.

Climate Adaptation Needs Dedicated Local Provisions: MicroSave Consulting

Vikash Sinha, Lead, Climate Change and Sustainability at MicroSave Consulting, said the allocation of Rs. 1.4 lakh crore under the 16th Finance Commission is commendable and strengthens fiscal federalism.

However, he stressed that climate resilience requires dedicated provisions for locally led adaptation mechanisms that can crowd in private innovation and investment.

Jitendra Srivastava, CEO, Triton Logistics & Maritime, said Budget 2026–27 offers an execution-focused blueprint for strengthening India’s logistics backbone. He welcomed the push on dedicated freight corridors including the Dankuni-Surat link.

He said inefficiencies often lie in cargo movement to smaller production and consumption centres, making consistency in regional freight infrastructure critical.

DHL Express Highlights Trust-Based Trade Ecosystem

R.S. Subramanian, SVP, DHL Express India, said the Budget marks a landmark shift towards a truly trust-based trade environment. He welcomed AI-enabled scanning, faster clearances and predictable regulatory rulings.

He said removal of value caps on courier exports and simplification of duty structures will ease compliance burdens, especially for MSMEs and e-commerce exporters.

Subramanian also highlighted strengthening of the Authorized Economic Operator framework through a 30-day deferred duty payment option, improving working capital efficiency.

Gems & Jewellery Industry Welcomes Policy Stability

Rajesh Rokde, Chairman, GJC, said the absence of any increase in customs duty or GST provides confidence and reinforces the government’s recognition of the sector’s contribution to employment and exports.

Avinash Gupta, Vice Chairman, GJC, added that improved access to finance, simplified compliance and MSME support will enable jewellers across the value chain to focus on sustainable growth.

Power and Energy Transition Financing Gets Attention: Bain & Company

Sambit Patra, Partner at Bain & Company, said Budget 2026 squarely acknowledges the hard part of the energy transition—financing and decarbonising the real economy.

He noted that CCUS adoption and restructuring of PFC/REC could materially shape long-term financing capacity and project execution velocity.

Construction Equipment Sector Sees Long-Term Visibility: Ammann India

Dheeraj Panda, Managing Director, Ammann India, said the Budget reinforces infrastructure and manufacturing as twin engines of growth, with capex rising above Rs. 12 lakh crore.

He said high-speed rail corridors, multimodal logistics and urban connectivity will drive demand for high-output and technologically advanced construction equipment.

Green Manufacturing Boost Welcomed: Servotech Renewable

Raman Bhatia, Managing Director, Servotech Renewable Power System Ltd., called the Budget a masterstroke for India’s green manufacturing. He said customs duty exemptions on capital goods for lithium-ion cell manufacturing will strengthen domestic value chains.

He welcomed Rs. 20,000 crore for CCUS and the government’s push for AI integration, along with tourism development in eastern states supported by electric buses.

Telangana Traders Seek Relief for Compliance and GST Burdens

Telangana State Federation of Chambers of Commerce & Trade President Ammanabolu Prakash welcomed the intent of the Budget but expressed concern that traders’ challenges remain unaddressed.

He said frequent GST notices, return mismatches and delayed refunds are impacting working capital, urging quarterly returns and trader-friendly help desks.

Prakash raised concerns over unfair competition from large e-commerce platforms and called for strict enforcement of e-commerce rules.