Industry Leaders Applaud Union Budget 2026 for Strengthening India's Global Position
India's corporate sector has expressed strong approval for the Union Budget 2026, highlighting its potential to enhance the country's global competitiveness while advancing industrial self-sufficiency. Business leaders across multiple industries have praised the government's strategic focus on infrastructure development, manufacturing capabilities, and technological innovation as key drivers for sustained economic growth.
Manufacturing and Infrastructure Receive Major Boost
Anish Shah, Group CEO & MD of Mahindra Group, emphasized that the budget takes meaningful steps toward atmanirbharta (self-reliance) and enables broader participation in economic benefits. "This Budget focuses on enhancing India's competitiveness in the world," Shah stated, noting the emphasis on frontier manufacturing sectors through enhanced schemes like Biopharma Shakti and the Semiconductor Mission (ISM 2.0). He highlighted that strengthening domestic value chains and reducing critical import dependencies will be crucial for India's future industrial leadership.
Shah also pointed to the significant increase in capital expenditure to Rs 12.2 lakh crore for FY27, calling it an "unambiguous policy focus" on infrastructure, regional development, and job creation. This investment is expected to attract private investment, enhance productivity, and support the growth of tier-2 and tier-3 cities as emerging economic hubs.
Automotive Sector Welcomes Strategic Initiatives
Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (SIAM), noted that the budget continues its focus on long-term economic growth with strong emphasis on manufacturing and infrastructure. "The decision to raise capital expenditure will provide strong impetus to demand creation and industrial activity, including the automobile sector," he said. Chandra highlighted enhanced support for electronic components manufacturing, dedicated corridors for rare earth mining, and initiatives for high-tech tool rooms as measures that will develop supply chain resilience and streamline exports.
Luxury car manufacturers also responded positively. Santosh Iyer, MD & CEO of Mercedes-Benz India, described the budget's focus on infrastructural development as a "step in the right direction" for India's evolving mobility ecosystem. He noted that better highways and improved intercity connectivity have historically driven luxury car demand in India. Iyer also praised the fiscal prudence reflected in the 4.3% deficit target and strong focus on exports, which signals macroeconomic stability and may lead to less currency volatility.
Balbir Singh Dhillon, Brand Director of Audi India, echoed these sentiments, stating that improved highways and connectivity across tier-II and tier-III markets are strengthening the ownership ecosystem for luxury automobiles. "The government's focus on fiscal prudence, macroeconomic stability, and ease of doing business reinforces confidence for long-term investments in the automotive sector," Dhillon emphasized.
Digital Economy and Technology Infrastructure Gain Momentum
On the digital front, Manoj Kumar Singh, Director General of the Digital Infrastructure Providers Association (DIPA), praised the budget's approach to creating digital infrastructure. "The tax holiday until 2047 for cloud providers leveraging Indian data centers is bold policy-making that positions us as a global hub," he said, noting that this advances India's $3 trillion digital economy ambition. Singh also highlighted the recognition of digital infrastructure as a great enabler and mentioned the Rs 10,000 crore SME Growth Fund and Rs 2,000 crore top-up for the Self-Reliant India Fund as significant economic enablers.
Space Industry Sees Encouraging Signals
The space sector received positive attention with increased allocation for ISRO to Rs 13,705.6 crore in FY 2026–27. Lt. Gen. AK Bhatt (retd.), Director General of the Indian Space Association (ISpA), stated that this allocation is an important signal that will support deeper private sector participation in ISRO-led programs. "The proposal on expanding telescope infrastructure and learning facilities is a meaningful step toward strengthening India's scientific base in astrophysics and astronomy," Bhatt added, noting that these measures can improve observational capabilities and enhance collaboration between ISRO, academia, and industry.
Real Estate and Retail Sectors Anticipate Growth
In the real estate sector, Ajay Chaudhary, Chairman & MD of ACE Group, highlighted that the budget's continued emphasis on infrastructure and urban development provides positive signals for well-planned real estate projects. "With cities clearly positioned as engines of growth, sustained investment in urban infrastructure will play a key role in shaping premium housing demand," he said, mentioning announcements of seven new high-speed rail corridors and modern infrastructure development across tier-II and tier-III cities.
Arun Malhotra, founder of Brandman Retail, noted that the budget strengthens sports goods manufacturing, innovation, and affordability. "These initiatives resonate deeply with India's growing active lifestyle culture and retail demand," he said, explaining that supporting high-quality local production and enhancing access to equipment empowers athletes and unlocks opportunities for the retail ecosystem.
Overall Business Confidence Reinforced
Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, called the budget a "bold Budget" that combines growth with inclusion. He emphasized the strong focus on skilling alongside sustained investments in science, innovation, and research as timely measures that will strengthen domestic capabilities and advance import substitution in critical sectors.
Pawan Goenka, Chairman of IN-SPACe, summarized the budget's impact by stating that it strengthens the foundations required for sustained economic growth. "The focus on manufacturing with a boost to creating Champion MSMEs, and infrastructure reflects an understanding that scale and resilience are built through stable policy and institutional support," he said, highlighting simplification of tax processes and GST rationalization as measures that will ease compliance and encourage entrepreneurship.
Industry leaders unanimously agree that Union Budget 2026 provides a comprehensive framework for enhancing India's global competitiveness, promoting self-reliance, and driving inclusive economic growth through strategic investments across sectors.
