Industry Stakeholders Outline Key Expectations for Union Budget 2026-27
The industrial sector, particularly small-scale industries (SSIs), is approaching the upcoming Union Budget with significant anticipation. Industry leaders across Maharashtra have articulated a comprehensive set of expectations, centered on modernization, innovation, skilled manpower development, and robust job creation.
Core Demands for Industrial Modernization and Infrastructure
Abhay Bhor, President of the Forum of Small Scale Industries Association, Maharashtra State, emphasized the critical need for the budget to prioritize modernization, innovation, and job creation within India's industrial framework. "Focus must be placed on strengthening the fundamental needs of industries," Bhor stated. He highlighted essential areas requiring attention, including the development of skilled manpower, subsidies for robotics and technology-based machinery, and significant improvements to the main roads and logistics networks that connect industrial zones.
Bhor further stressed the importance of creating new opportunities for startups to integrate into major supply chains. "It is crucial to create opportunities for new startups to enter the railway and government supply systems," he noted, pointing to a pathway for broader industrial participation and growth.
Simplifying Processes and Supporting Entrepreneurs
A major point of discussion revolves around the simplification of regulatory and financial processes. Sandeep Belsare, President of the Pimpri Chinchwad Small Industries Association, voiced a long-standing industry demand. "We hope our long pending demand for a simplified process of GST registration and cancellation would be met this budget," Belsare said. He also called for an appropriate policy regarding GST on leased premises, advocating for the abolition of the current 18% GST rate applied to such property-related transactions.
Regarding financial support, Belsare pointed to the pressing need for simplified loan schemes for Micro, Small, and Medium Enterprises (MSMEs). He expressed hope that the budget would increase the loan limit under the Credit Guarantee Fund Trust for MSMEs. Additionally, he advocated for the reinstatement of discontinued subsidies, specifically proposing a 15% subsidy for the purchase of new machinery to aid industry modernization.
Empowering Women and Rural Enterprises
The budget expectations also extend to fostering inclusive growth. Abhay Bhor addressed the challenges faced by women entrepreneurs, noting that while schemes like skill development centers and MUDRA loans exist, many women are unable to access their benefits effectively. "Therefore, it is expected that these schemes be made more accessible, efficient, and widely operational," he urged.
Bhor also proposed setting up export facilitation centers specifically for rural industries. He argued that such measures, combined with a reconsideration and reduction of electricity rates in Maharashtra and the implementation of business-friendly schemes for small-scale industries, would help reduce the number of units shutting down. "This will boost job creation and foster the development of both rural and women-led enterprises," he concluded.
Building Global Competitiveness and Sustainability
Looking at the broader industrial landscape, Bharat Gite, CEO and MD of Taural India, acknowledged the government's foundational work in recent years. "Over the last few years, the government has established a robust foundation for India's manufacturing growth through infrastructure investments, support for MSMEs, and a sustained push for domestic production," Gite observed.
However, he emphasized that the next phase requires a strategic shift. "As we move into the next phase of Make in India, the focus must expand from building capacity to building global competitiveness," Gite stated. He expressed hope that the Union Budget 2026–27 would accelerate this transition by supporting critical areas like clean energy, sustainable mining, carbon-intelligent production, and wider MSME participation. This, he believes, would enable India to scale sustainable manufacturing, strengthen export competitiveness, and emerge as a trusted global industrial partner.
Comprehensive Industry Wishlist
In summary, the collective expectations from industry associations for the upcoming budget are multifaceted and ambitious. The key demands include:
- Subsidies for robotics and advanced machinery to drive modernization.
- Simplified and faster GST processes, including registration, cancellation, and refunds.
- Easier access for startups to secure government contracts.
- Better implementation and accessibility of schemes designed for women entrepreneurs.
- Enhanced logistics infrastructure and the establishment of rural export centers.
- Reduction in electricity rates, particularly in industrial states like Maharashtra.
- Increased income tax limits and a simpler overall tax structure.
- Special concessions and revived subsidies specifically targeted at the MSME sector.
The overarching goal, as articulated by industry leaders, is for a budget that actively drives industrial growth, supports startups and women entrepreneurs, increases employment, encourages innovation, and develops the necessary physical and policy infrastructure for a globally competitive Indian manufacturing sector.
