Industry leaders applaud Union Budget as India charts bold path to Viksit Bharat

Speaking in Parliament, Sitharaman outlined the government’s priorities for Asia’s third-largest economy, focusing on accelerating growth, enhancing competitiveness, and building resilience against global uncertainties.

The Budget also emphasized financial sector reforms, capital expenditure scaling, and regulatory improvements to support long-term economic expansion.

The fiscal roadmap projects a gradual consolidation, with the debt-to-GDP ratio estimated at 55.6% in 2026–27, down from 56.1% in the current year, and a fiscal deficit pegged at 4.3% of GDP.

Sectoral Reactions

Real Estate & Infrastructure:

Anuj Puri, Chairman of ANAROCK Group, said the Budget focuses on sustained economic growth, infrastructure, MSMEs, tourism, high-speed rail, and manufacturing. “While there are limited direct measures for real estate, the Budget acts as a growth catalyst rather than an immediate rescue,” he noted. He expressed disappointment over the lack of measures for affordable housing, pointing out that its sales share has declined from 38% in 2019 to around 18% in 2025.

Umesh Revankar, Executive Vice Chairman of Shriram Finance, highlighted continuity in infrastructure and logistics. “Emphasis on freight corridors and river-linked transport strengthens India’s ability to move goods efficiently, reduce logistics costs, and expand market access,” he said.

Gems & Jewellery Sector:

Rajesh Rokde, Chairman of the All India Gem & Jewellery Domestic Council (GJC), welcomed the stable approach for the industry, citing no increase in customs duty or GST, continued policy certainty, and support for MSMEs and clusters. Avinash Gupta, Vice Chairman of GJC, added that these measures, coupled with simplified income-tax compliance and improved access to finance, will enable the sector to plan confidently amid global uncertainties.

Automotive & Manufacturing:

Arnab Banerjee, MD & CEO of CEAT Limited, said the Budget lays a strong foundation for sustained growth across mobility and manufacturing, with infrastructure development and expansion of freight networks creating durable demand for vehicles and tyres.

Shailesh Chandra, President of SIAM and MD & CEO of Tata Motors Passenger Vehicles Ltd, welcomed the increase in capital expenditure to ₹12.2 lakh crore, emphasizing its positive impact on industrial activity, including the automobile sector.

MSMEs & Banking:

Prashanth T.S., President & Head – Mid-Corporates & Medium Enterprises Group, Axis Bank, highlighted structural support for MSMEs, noting expanded credit guarantee coverage and accelerated adoption of digital receivables financing through TReDS.

Challa Sreenivasulu Setty, Chairman of SBI and IBA, noted continued focus on emerging sectors, including semiconductors, AI, and data centres, while praising initiatives such as the SME Growth Fund and TREDS-backed credit guarantees.

Pharma, Tourism, Minerals & Healthcare:

Anil Agarwal, Chairman of Vedanta Ltd, described the Budget as “growth-oriented,” citing support for critical minerals and rare earths, including duty exemptions on capital goods for processing.

Manoj Bhat, MD & CEO of Mahindra Holidays & Resorts India Ltd, said the Budget reinforces tourism and hospitality as levers for geographically balanced economic growth, with investments in destination development, connectivity, and spiritual and heritage circuits.

Debashis Roy, Founder of Health Plus, welcomed focus on geriatric and home-based care, calling it a crucial step toward accessible, dignified, and sustainable eldercare.

Education, Innovation & Technology:

Rajeev Singh, MD of BenQ India & South Asia, applauded measures to align education with industry needs and emerging technologies, including AI, through the proposed Education-to-Employment Standing Committee.

Mohammad Athar Saif and Sujay Shetty of PwC India praised the launch of ISM 2.0, highlighting its potential to strengthen domestic semiconductor manufacturing, R&D, workforce training, and India’s position in the global value chain.

Capital Markets & Economic Outlook:

Manish Jain, MD & CEO of Bajaj Broking, said the Budget builds confidence for long-term capital formation, supported by fiscal prudence and a strong public capital expenditure push.

Gaurav Pandey, Co-Chairman of FICCI Committee on Urban Development and Real Estate, welcomed the emphasis on infrastructure-led growth, urban development, and connectivity, noting that measures such as the Infrastructure Risk Guarantee Fund will support medium-term real estate demand.

Mukundan Menon, MD of Voltas Ltd., said the Budget reflects a “future-ready macroeconomic vision,” combining fiscal discipline with strategic investment in manufacturing, technology, and consumer durables, including the enhanced ₹40,000 crore outlay for electronics component manufacturing.

FICCI Reaction:

Anant Goenka, President of FICCI, described the Budget as balanced and credible, with a clear focus on growth, inclusivity, and youth empowerment. “The proposals reinforce confidence that the government remains committed to strengthening core economic growth levers, aligned with the long-term vision of Viksit Bharat,” he said.