Madhya Pradesh Industries Await Union Budget 2026-27 for Policy Boost
As the Union Budget 2026–27 is scheduled to be presented in Parliament on Sunday, various industries across Madhya Pradesh are expressing their expectations for policy measures that could strengthen competitiveness, expand industrial infrastructure, and support employment generation. Sectors including footwear, confectionery, automobile, mattresses, plastics, and general manufacturing are particularly hopeful for reforms that address their specific challenges.
Key Expectations from Budget 2026
Industries in Madhya Pradesh have outlined several critical areas where they seek government intervention through the upcoming budget. These expectations are centered around infrastructure development, financial incentives, and workforce training.
Development of Integrated Industrial Parks
A major expectation this year is the development of integrated industrial parks in the state. These parks would offer common facilities, logistics connectivity, and plug-and-play infrastructure, which are essential for reducing project costs and fast-tracking new investments. Such infrastructure is seen as vital for attracting fresh capital and scaling operations.
Rajeev Agrawal, a mattress manufacturer based in Mandideep near Bhopal, emphasized the need for expansion of production-linked incentive (PLI) schemes and a broader manufacturing push. He stated, "Increasing the ambit of PLI, developing more integrated industrial parks in MP, and simplifying taxation for small industries would help manufacturers scale operations and attract fresh investments."
Enhanced Skill Development Allocation
Industry associations have highlighted that enhanced allocation for skill development remains another key expectation. This is particularly important for labour-intensive sectors such as footwear, food processing, and auto components, which continue to face shortages of trained manpower.
Girish Punjabi, president of the Indore Footwear Manufacturers Association, pointed out that the widening skill gap is hurting local competitiveness. He said, "In sectors dependent on skilled labour, there should be proper and easy access to training programmes to help industries match global standards."
Addressing Subsidy Disbursal Delays
Industries have also raised concerns over delays in subsidy disbursals, which can severely impact cash flow and working capital. Parag Kheir, a plastic mould manufacturer supplying to the pharmaceutical industry, explained, "Delayed release of subsidies blocks working capital and disrupts cash flow. This severely affects money rotation, which is critical for small-scale industries, and a time-bound mechanism for SME disbursal should be followed strictly."
Sector-Specific Concerns
Food manufacturers have flagged sector-specific issues, seeking budget support for technology upgradation, modern packaging facilities, and simplified compliance to meet food safety standards amid rising input costs. Dinesh Choudhary, president of the Indore Confectionery Manufacturers Association, emphasized these needs.
Additionally, Ramesh Vyas, a plastic manufacturing industrialist from Gwalior, highlighted the importance of hand-holding for MSMEs. He said, "MSMEs need hand-holding to grow and sustain. Emerging industrial clusters should get faster approvals, should have improved infrastructure, and easier access to institutional finance to sustain growth momentum."
Potential Impact of Budget Measures
Industry bodies believe that a budget focused on integrated industrial parks, skilling, simplified taxation, and timely subsidy disbursal could significantly strengthen Madhya Pradesh's manufacturing ecosystem in the coming financial year. Such measures are expected to enhance the state's industrial competitiveness and support sustainable growth.
The anticipation among industries reflects a broader hope for policy reforms that address both immediate challenges and long-term development goals, positioning Madhya Pradesh as a key player in India's manufacturing landscape.
