Industry Bodies Largely Welcome Union Budget 2026 as Growth-Oriented and Pragmatic
Industry associations have broadly welcomed the Union Budget 2026, describing it as a growth-oriented and pragmatic roadmap that strengthens key sectors like manufacturing, MSMEs, technology, and healthcare. However, they also flagged critical gaps that require immediate attention, particularly for small businesses, to ensure inclusive economic expansion.
CII Leaders Applaud Focus on Capital, Technology, and Workforce
Leaders from the Confederation of Indian Industry (CII) emphasized that the Budget's focus on capital access, technology, and workforce readiness would support long-term industrial growth. Anjali Singh, chairperson of CII Northern Region and executive chairperson of ANAND Group, noted that the proposals would improve MSMEs' access to growth capital and enable sustainable scaling. She highlighted the launch of India Semiconductor Mission 2.0 as a major step toward building indigenous capabilities in equipment, materials, design, and intellectual property, thereby strengthening India's advanced manufacturing ecosystem.
Puneet Kaura, deputy chairperson of CII Northern Region and MD and CEO of Samtel Avionics, stated that the Budget adopted a steady and pragmatic approach to bolstering India's industrial and technology base. He pointed to continued emphasis on MSME capacity building, access to capital, and supply-chain integration as key drivers.
Dr Upasana Arora, chairperson of CII Uttar Pradesh and MD of Yashoda Super Speciality Hospitals, said the Budget reflects a clear focus on job creation and preparing the workforce for emerging opportunities. She cited initiatives like Bio Pharma Shakti to boost biopharma manufacturing, R&D, and exports, while greater emphasis on mental health and trauma care would improve access to quality healthcare.
Abhishek Saraff, vice-chairman of CII Uttar Pradesh and MD of Avadh Rail Infra Ltd, welcomed the proposed SME Growth Fund and modernisation of industrial clusters, noting these would enhance competitiveness and encourage MSME-led expansion. Rachna Jindal, regional director of CII Northern Region, added that policy continuity and stability would accelerate investments and reinforce the region's role as a key growth driver.
IIA Offers Mixed Response, Highlights MSME Concerns
The Indian Industries Association (IIA) provided a mixed response to the Budget. Dinesh Goyal, IIA national president, acknowledged the Budget's strong commitment to economic growth and MSMEs, citing allocations for biopharma, semiconductor manufacturing, high-speed rail infrastructure, and the SME Growth Fund. However, he expressed disappointment over the absence of an MSME exit policy, calling it a missed opportunity, and urged more aggressive steps to promote import substitution, especially in medical and food processing equipment.
Awadhesh Agarwal, IIA national treasurer, welcomed proposals for high-tech tool rooms, Champion MSMEs, and a focus on rare earth magnets, stating these would strengthen advanced manufacturing. In contrast, former IIA president VK Agarwal voiced concern that many measures are long-term, stressing the need for immediate relief for MSMEs to address current challenges.
Other IIA members highlighted specific benefits: KK Agarwal, banking committee chairman, termed the linking of GeM with TReDS a major liquidity booster; Kapil Vaish, GST committee chairman, noted that lowering customs duty on components would promote indigenisation; Shashank Shekhar Gupta said the Champion MSMEs initiative would enhance competitiveness; and CA Reena Bhargava and CA Ashok Seth welcomed support for women-led enterprises and liquidity relief through reduced TDS and TCS.
Healthcare and Infrastructure Sectors Voice Optimism
Representatives from healthcare and infrastructure sectors also expressed optimism. Dr Mayank Somani, MD and CEO of Apollo Hospitals, Lucknow, remarked, "The healthcare push, medical hubs, and workforce expansion will improve care quality and strengthen India's medical tourism ecosystem."
Yawer Ali Shah, Co-founder and CEO of AMA Herbal Group of Companies, stated, "Budget 2026's SME Growth Fund, cluster revival, and credit support will strongly boost MSMEs, jobs, and self-reliant manufacturing."
RajniKant Mishra, founder and chairman of Amrawati Group, added, "The Budget boosts infrastructure and real estate, de-risking projects, expanding REITs, and unlocking growth in Tier-2 and Tier-3 cities."
Overall, while industry bodies lauded the Budget's forward-looking measures, they underscored the necessity for immediate interventions to support MSMEs and ensure balanced economic progress across all sectors.
