Union Budget 2026: PM Modi’s vision meets industry optimism
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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.
Industry leaders have welcomed the Budget’s focus, highlighting its potential to transform India’s economic landscape:
MSMEs and FDI
Manoj Purohit, Partner at BDO India, said, “The proposed impetus for MSMEs in Budget 2026 across various fronts will attract foreign capital. The allocation of ₹10,000 crore to the SME Growth Fund will make small and medium enterprises a preferred alternative to large MNC offshore institutions, enhancing India’s self-reliance and the AIF ecosystem.”
Purohit also welcomed the proposed amendments for Persons Resident Outside India (PROIs), stating, “Opening up Indian capital markets for non-resident investors will increase inflows and help stabilise currency and capital markets.” Similarly, Anish Shah from BDO India stressed that relaxations in FEMA rules will boost liquidity and make the Indian market more accessible to global investors.
January 2026
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Biopharma and healthcare
On the Biopharma Shakti initiative, Gyanendra Tripathi of BDO India said, “With an outlay of ₹10,000 crore, the initiative will strengthen domestic manufacturing, improve regulatory compliance, and enhance India’s competitiveness in global biopharma markets.” Mansi Singh from BTG Advaya added, “The establishment of clinical trial sites, regional medical hubs, and initiatives in traditional medicine will position India as a trusted global hub for healthcare and life sciences, generating high-skilled jobs and attracting investment.”
Sustainability and clean energy
Karthik Mani, Partner at BDO India, welcomed the carbon capture initiative and customs duty exemption on solar-related materials, saying, “These measures support India’s clean energy transition, improve cost competitiveness for domestic manufacturers, and enhance global competitiveness in renewables.”
Infrastructure and connectivity
The focus on high-speed rail corridors has been positively received. Rony Antony, Partner at BDO India, said, “Three of the seven announced corridors connect Bengaluru, Chennai, and Hyderabad, significantly improving mobility in South India.” Sujay Kalele, CEO of TRU Realty, stressed the real estate benefits, “Improved connectivity will make Mumbai and Pune high-performing residential and employment hubs, driving sustained demand in both residential and logistics sectors.”
Tourism and services
The Budget’s focus on tourism was highlighted by Kunal Gala of BDO India: “Treating tourism as economic infrastructure rather than a discretionary sector is a game-changer. Experience-led tourism, skilling, and regional medical hubs could make India a globally competitive destination, increasing GDP contribution and employment.”
Tax reforms and compliance
Experts also praised measures enhancing ease of compliance and investment certainty. Preeti Sharma of BDO India said, “Simplified TDS mechanisms, relaxed foreign asset reporting, and a one-time disclosure scheme will encourage transparency and compliance.” Munjal Almoula highlighted APA fast-tracking for IT/ITES companies, stating, “This will provide certainty and encourage FDI in the sector.”
Capital markets and financial stability
Manoj Shetty of Aikyam Capital said, “With sustained capital expenditure of ₹12.2 lakh crore and a fiscal deficit anchored at 4.3% of GDP, the Budget provides stability for long-term investors while improving liquidity and expanding opportunities in corporate bonds and municipal financing.”
Healthcare and social impact
Dr. Rashmi Ardey from Smile Foundation welcomed the focus on allied health workforce development and emergency care expansion, noting, “Budget 2026 reinforces a people-first healthcare agenda, with reforms that can deliver measurable health gains at the community level.”