Union Budget 2026-27 Sparks Varied Responses in Varanasi
The Union Budget for the fiscal year 2026-27, unveiled on Sunday, has generated a spectrum of reactions from different stakeholders across the historic city of Varanasi. While certain segments have commended the government's strategic approach to fostering global markets and strengthening the Make in India initiative, others have voiced disappointment over what they perceive as insufficient attention to specific critical sectors.
Industry Leaders Express Cautious Optimism
National vice president of the Indian Industries Association, R K Chaudhary, characterized the budget as balanced and oriented toward development. However, he highlighted that the MSME sector had harbored greater expectations. "In view of the scale of the crisis exporters are facing, we do not consider the provision of Rs 10,000 crore for this sector adequate," Chaudhary remarked. He emphasized that with 6.7 lakh MSME units nationwide serving as the economy's growth engine, the sector requires enhanced governmental focus to achieve the ambitious target of transforming India into a developed nation by 2047.
Tax Reforms and Infrastructure Focus Applauded
Chartered accountant Puneet Singh welcomed the budget's initiative to streamline Income Tax Return filing deadlines. The new schedule sets July 31 for salaried taxpayers and non-audit cases, August 31 for non-audit business entities and trusts, and September 30 for audited assessees, maintaining the status quo for the latter. "The rationalisation brings much-needed clarity, better workload distribution and realistic timelines for compliance—especially beneficial for small taxpayers and professionals alike," he noted.
Entrepreneur Rajat Pathak pointed out that the Rs 10,000 crore MSME-focused package, coupled with recent trade agreements with Europe, demonstrates the government's strategy of first creating global markets and then bolstering India's manufacturing supply base through small and medium enterprises. The emphasis on infrastructure development in cities with populations exceeding 5 lakh and a special focus on textiles—aligned with One District One Product initiatives—signals a deliberate shift toward empowering artisans, micro, and tiny entrepreneurs rather than solely reviving large industrial monopolies.
Pathak added that proposed textile parks in traditional hubs like Banaras, supported by strong policy measures from the Centre, hold the potential to generate a significant multiplier effect across the local economy.
Tourism Sector Seeks Additional Support
Tours and travel operator Raj Bandhu Khanna acknowledged the positive move of developing tourist spots to promote domestic tourism but noted a decline in international tourism to India. He suggested that relaxing visa rules could boost international tourism and increase foreign exchange earnings. Khanna expressed that expectations from tour operators, such as tax relief in bus and taxi operations, remained unmet. He advocated for sectoral support through modules and comprehensive educational institutions dedicated to international tourism development, which could produce skilled professionals to enhance business in this vital sector.
Academic Perspective on Employment and Skill Development
Professor Hansa Jain from the Department of Economics at Mahatma Gandhi Kashi Vidyapith appreciated the budget for placing employment and skill development at the core of India's development agenda. She linked the record capital expenditure commitment of Rs 12.2 lakh crore in transport, logistics, railways, and urban infrastructure to the long-term vision of Viksit Bharat by 2047. "With this historic CapEx commitment, the budget aims to generate large-scale employment, particularly for youth entering the labour market," Jain stated.
However, she cautioned that while these opportunities will absorb a significant share of new workers, many jobs remain project-based and male-dominated. This underscores the necessity for sustained private investment, sectoral diversification, and skill progression to ensure long-term employment stability and inclusiveness across all demographics.
The Union Budget 2026-27 continues to be a topic of intense discussion among Varanasi's business community, professionals, and academics, reflecting the diverse economic landscape and varied expectations from this pivotal financial blueprint.
