The Union Budget 2026 ensures policy continuity by prioritising capital expenditure, with a measured increase in budgetary spending and minimal changes to the tax framework, thereby providing stability, said Rajiv Anand, President of the Bombay Chamber of Commerce and Industry and Managing Director & CEO of IndusInd Bank. 

According to Anand, fiscal consolidation anchored to a debt-to-GDP target provides the government with the flexibility to extend countercyclical support if required, particularly in the face of a challenging global environment. 

Strong push to infrastructure, MSMEs 

In the Union Budget, Finance Minister Nirmala Sitharaman placed a strong emphasis on infrastructure, raising public capital expenditure to ₹12.2 lakh crore for the next fiscal year—nearly 9% higher than the previous year. 

The Budget also announced the creation of a ₹10,000 crore SME Growth Fund to improve access to capital for MSMEs, along with an additional ₹4,000 crore allocation to the Self-Reliant India Fund. Credit and liquidity support for small businesses was further expanded. Manufacturing got a significant boost through a ₹40,000 crore Electronics Components Manufacturing Scheme, alongside continued policy support for key sectors such as semiconductors, biopharma, textiles, and container manufacturing. 

“A comprehensive review of banking system regulations, development of transport and logistics infrastructure, capital and liquidity support for MSMEs, budgetary support for strategic sectors in manufacturing and services, and initiatives to develop skills will help enhance factor productivity and drive long-term growth,” he said. 

Reforms aligned with long-term vision 

The Budget was anchored around three key “Kartavya” priorities outlined by the Finance Minister—accelerating and sustaining economic growth, fulfilling aspirations and building capacity, and ensuring inclusive access to growth. 

“The Union Budget 2026–27 reinforces strong confidence in India’s growth trajectory, anchored in manufacturing, infrastructure and consumption. The continued focus on domestic manufacturing across chemicals, electronics and capital goods strengthens supply-chain resilience and supports India’s ambition to be a globally competitive production hub,” said Sudhanshu Vats, Senior Vice President, Bombay Chamber of Commerce and Industry, and Managing Director, Pidilite Industries Ltd. 

Experts said the reform momentum has carried forward into 2026, building firmly on the Viksit Bharat 2047 vision. They noted that the TCS-related announcements are globally competitive and send a clear signal of long-term policy intent, potentially marking the first taxation measure designed with a horizon stretching to 2047. 

“Portfolio investment prospects also look promising. The proposed measures, including support for data centres, are particularly significant given that Indian data centre companies are expected to attract investments of nearly $11 billion in the sector,” said Sudhir Kapadia, Past President, Bombay Chamber of Commerce and Industry and Senior Advisor, EY.