AP Chambers of Commerce President Lauds Union Budget 2026-27 as Growth-Oriented and Pragmatic
In Vijayawada, the President of the Andhra Pradesh Chambers of Commerce, Potluri Bhaskar Rao, has described the Union Budget for 2026-27 as a growth-oriented financial plan that reflects a balanced and pragmatic approach. This assessment comes against the backdrop of global economic uncertainties fueled by geopolitical tensions and trade disruptions, making the budget's stability particularly noteworthy.
Praise for Fiscal Consolidation and Structural Reforms
Bhaskar Rao extended his congratulations to Finance Minister Nirmala Sitharaman on presenting her ninth consecutive budget, welcoming the Centre's emphasis on fiscal consolidation and structural reforms. He highlighted that these measures are crucial for sustaining economic momentum in challenging times.
Key Initiatives Supporting MSMEs and Industrial Growth
The budget announcements that garnered significant appreciation from the AP Chambers include:
- A ₹10,000-crore SME Growth Fund aimed at bolstering small and medium enterprises.
- A ₹4,000-crore top-up to the Self-Reliant India Fund for the fiscal year 2026-27, designed to address liquidity constraints faced by MSMEs despite existing credit guarantee mechanisms.
- The proposal to revive 200 legacy industrial clusters, which is seen as much-needed relief for micro enterprises struggling with capital access.
Bhaskar Rao noted that these initiatives would provide substantial support to the MSME sector, enhancing their operational capabilities and financial stability.
Focus on Manufacturing, Technology, and Infrastructure
The government's focus on manufacturing and technology was also lauded, with specific mentions of:
- The launch of ISM 2.0, an upgraded initiative to boost industrial growth.
- Enhancement of the Electronics Components Manufacturing Scheme outlay to ₹40,000 crore.
- Support for rare-earth mineral corridors, including one in Andhra Pradesh, which Bhaskar Rao stated would strengthen domestic supply chains and reduce import dependence.
Additionally, the increase in capital expenditure to ₹12.2 lakh crore for FY 2027 was welcomed, along with announcements of mega textile parks emphasizing value-added and technical textiles, seven high-speed rail corridors, and a dedicated east-west freight corridor from Dankuni to Surat. The introduction of a cadre of corporate mitras in Tier-2 and Tier-3 cities to assist MSMEs with compliance at affordable costs was described as a timely intervention.
Disappointment Over Inadequate Allocations for Andhra Pradesh Projects
Despite the positive aspects, the AP Chambers expressed significant disappointment over the absence of adequate budgetary allocation for two critical projects in Andhra Pradesh:
- Polavaram Irrigation Project: This project is vital for irrigation, drinking water security, and regional development, requiring assured funding for completion by 2027. The lack of sufficient allocation was highlighted as a major concern.
- Amaravati's Development: The budget's insufficient allocations for Amaravati were termed a missed opportunity, with the Chambers observing that targeted support for these priorities would have significantly strengthened Andhra Pradesh's economic momentum and investor confidence.
In summary, while the Union Budget 2026-27 has been praised for its growth-oriented measures and support for MSMEs and infrastructure, the AP Chambers have underscored the need for more focused funding on key state-specific projects to fully harness Andhra Pradesh's economic potential.
