Union Budget 2026 Updates: 'We are giving a push to growth momentum,' says FM Sitharaman at post-Budget press meet

"Further building on the mega GST 2.0 reforms, the Union Budget 2026–27 presents a long-term focused roadmap that accelerates India’s rise as a global manufacturing hub and Atmanirbhar Bharat. Focus on the rare earth corridor, EV Battery and Electronics manufacturing, MSME empowerment, inclusivity and AI investments position India for global leadership. The strong push for tourism, rural growth and enhanced regional connectivity will further spur economic activity and open new avenues for advanced mobility, logistics and transportation solutions. With a bold capital outlay, simplified taxation and improved ease of doing business, this Budget is a decisive step towards a healthy and Viksit Bharat, reinforcing confidence in India’s growth story."

“Union Budget 2026 strengthens the policy backbone required for India to operate as a global technology and AI execution hub. The focus on cloud infrastructure and long-term clarity for cloud services directly addresses a core constraint in scaling enterprise platforms, the ability to run regulated, data-intensive workloads with confidence and continuity. For GCCs, this creates the conditions to move beyond delivery into ownership, where India increasingly designs, builds, and runs core platforms and mission-critical systems for global enterprises. Greater predictability in tax and compliance frameworks is critical when technology platforms are designed to run for years. For large, globally distributed engineering and operations teams, clarity reduces friction in decision-making and allows accountability for core platforms and products to sit firmly in one place. This matters for GCCs that are moving into full-stack ownership, where India increasingly builds, runs, and scales enterprise platforms for global customers. When this predictability is complemented by sustained investments in advanced skilling, strong education-to-employment pipelines, and a sharper focus on women in STEM, it reinforces India’s ability to deliver trusted, enterprise-grade technology at scale.”

“The Union Budget 2026 reinforces India’s growth momentum through a strong and sustained commitment to infrastructure and urban development, with public capital expenditure rising to Rs. 12.2 lakh crore in FY27. What stands out equally is the Budget’s sharp focus on Tier-2 and Tier-3 cities like Chandigarh, Indore, Ludhiana etc.  This shift is already translating into growing demand for organised real estate development. These markets are attracting not only local homebuyers but also growing interest from investors across India and abroad who are increasingly looking beyond metros for long-term value,” Mohit Goel, Managing Director, Omaxe Ltd

“The Union Budget 2026 represents a meaningful step for India’s electronics manufacturing landscape, including the consumer durables sector, particularly through its emphasis on strengthening export competitiveness and improving the operating environment for exporters. Measures focused on duty rationalisation and cost efficiencies will help Indian manufacturers remain competitive in global markets while navigating ongoing supply-chain and pricing pressures,” Saket Gaurav, CMD, Elista, said.

"This Budget is a masterstroke for India’s digital future. The 100% tax holiday for data centers until 2047 is a '1,000-pound gorilla' move. This is similar to the 90s software boom all over again. We are already adopting AI; now we are building the 'AI Factory of the World,' firing up massive capex in power, cables, and infrastructure. The fine print is equally vital; widening the IT services definition finally provides transfer pricing certainty for GCCs, signalling to the world that India is open for high-end tech business. However, we must be realistic about the impact of STT on capital markets. The STT hike and the removal of dividend set-offs seem to be bringing a headwind to markets. They make many high-frequency and arbitrage trades unviable, which will squeeze market liquidity and leverage in the short term. But with a prudent 4.3% fiscal deficit and a 12.2 lakh crore capex push, the long-term earnings story remains the real hero for India. Watch out for forthcoming monetary policy for continued credit growth of 13-15% to get nominal GDP growth of 10%+."

Following the presentation of the Union Budget 2026, Prime Minister Narendra Modi highlighted a forward-looking and futuristic roadmap for India—balancing fiscal discipline with high growth, boosting capital expenditure, and creating new opportunities across sectors. The Budget, he said, is designed to propel India toward becoming the world’s third-largest economy while making citizens’ dreams of prosperity a reality.

DEA secretary Anuradha Thakur said the government's intent is to have a strong asset monetisation pipeline. Last year, it was announced that there will be a pipeline for monetisation and we will reap dividends.

With the fund announced in the budget for small industries, the MSMEs will be given equity support, liquidity support and professionals support. MSMEs will not face any dearth of funds, Sitharaman said in the press meet.

"The Budget 2026–27 reflects a clear intent to balance fiscal consolidation with the need to sustain growth momentum. The reduced estimates for fiscal deficit reinforce assurance in India’s macro-economic stability and commitment to fiscal discipline. A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure. At the same time, increase in capital expenditure will accelerate infrastructure development, improve road quality and enhance mobility ecosystems. The Government’s focus on logistics improvement such as accelerating customs clearance of goods (via AEO programme) will make them available for manufacturing activity faster. Also, the reforms in tax compliances like longer validity of Advance Rulings in customs duty (from 3 to 5 years) will give more certainty to business operations. These long-term investments from the centre will have a direct multiplier effect on auto market. Budget has reinforced the fundamentals that matter most to the auto segment - economic stability, policy predictability and sustained infrastructure development. Recent initiatives taken before the budget like GST reforms and conclusion of various FTA's are already very positive steps taken by the Government for auto sector. For premium customers, confidence is the biggest driver, and this Budget further strengthens that confidence while creating the right conditions for long-term, sustainable growth in mobility."

We are laying the path and giving a push to maintain the growth momentum. We want to ensure growth momentum and sustained economic growth. Primarily we are looking at an ecosystem with structural reforms, which will go on. reforms will continue with an aim of improving productivity and employment generation.

Finance Minister Sitharaman denied ignoring poll-bound states in the Union Budget.

"We welcome the Union Budget 2026–27 presented by the Hon’ble Finance Minister, which lays the foundation for hospitality and tourism to scale responsibly across India while reinforcing the sector’s role in employment generation and regional economic growth. The focus on sustainable and experiential tourism, including the development of Himalayan trails, the continued push for Buddhist circuits, and the strong policy thrust on the Northeast, will support the growth of diverse tourism segments while enabling more balanced regional development. These measures are expected to encourage longer stays, wider travel dispersal, and stronger demand for quality accommodation and services across tier-2 and tier-3 markets.

One of the key initiatives is the announcement to set up a National Institute of Hospitality and strengthen the Council for Hotel Management, recognising that skilling will be critical to the sector’s long-term sustainability. The hospitality industry has been reinforcing its talent pipelines through structured training programmes, partnerships with hospitality institutes, and focused efforts to build local capabilities. Overall, the Budget’s integrated approach to infrastructure, destination development, and skill-building creates a positive environment for tourism and hospitality to scale responsibly. Radisson Hotel Group’s expansion across emerging destinations, including the Northeast, and its continued investment in skill development are closely aligned with this direction, supporting the creation of sustainable jobs and resilient tourism ecosystems."

“The Union Budget 2026–27—the first from the Kartavya Bhavan and the ninth consecutive budget by the Hon’ble Finance Minister—reinforces the message that strong growth and fiscal discipline can advance together. It stays firmly on the consolidation path, with the fiscal deficit easing from 4.4% to 4.3% of GDP and debt-to-GDP declining from 56.1% to 55.6%, keeping India on track toward the 50% ±1% target by FY31. This signals macro stability and policy credibility to investors and markets.”