Industry Welcomes Budget 2026–27’s Strong Push on Manufacturing, Mobility and Innovation

The Union Budget 2026–27 has emerged as a defining statement of India’s economic intent, signalling a decisive shift towards technology-led, manufacturing-driven, and sustainable growth. At a time of global uncertainty, supply-chain realignments, and slowing demand across key global markets, the Budget offers much-needed clarity, continuity, and confidence to industry.

With a record capital expenditure outlay, a sustained push on infrastructure creation, and targeted measures for MSMEs, the government has reinforced its commitment to long-term economic resilience. Advanced manufacturing, clean mobility, electronics, semiconductors, critical minerals, renewable energy, and defence production have been identified as key pillars of India’s next growth phase.

Equally significant is the emphasis on ease of doing business, policy stability, and domestic value-chain development, aimed at reducing import dependence while enhancing India’s global competitiveness. Initiatives such as ISM 2.0, electronics component incentives, rare earth corridors, MSME growth financing, and export facilitation are being viewed as catalysts for scale, localisation, and innovation.

Industry leaders and stakeholders across sectors have shared their perspectives on the Budget’s impact, highlighting both immediate opportunities and long-term structural benefits. In this article, we bring together reactions and insights from a wide range of industry leaders, corporates, and associations, capturing how different sectors view the Budget’s implications for growth, investment, and competitiveness.

Collectively, these voices reflect growing optimism that the Union Budget 2026–27 lays a strong foundation for India’s ambition to emerge as a globally competitive, resilient, and future-ready economy.

Dr. Uday Narang, Founder and Chairman of Omega Seiki Mobility remarked, “The Union Budget 2026–27 marks a decisive shift in making India a global hub for smart and sustainable mobility. The strong push on advanced manufacturing, AI-led technologies, electronics and semiconductor expansion, rare-earth and battery supply chains, the ₹10,000 crore SME Growth Fund, and higher public capex will significantly strengthen the EV ecosystem. What stands out is the focus on ease of doing business and MSME financing, which lowers cost barriers and improves supply-chain resilience. For companies like Omega Seiki Mobility, this creates the right environment to scale innovation, deepen localisation, expand charging and logistics infrastructure, and accelerate EV adoption across Tier-2 and Tier-3 markets. Together, these measures position India not just as a large EV market, but as a competitive global export base for clean, tech-driven mobility solutions.”

Mr. Aravind Melligeri, Executive Chairman & CEO, Aequs Limited

“The decision to allow eligible SEZ manufacturing units to sell into the Domestic Tariff Area at concessional duty is a significant boost for companies that have built large-scale capacities across consumer and aerospace & defence manufacturing. At a time of global demand volatility and trade disruptions, this pragmatic measure will improve capacity utilisation, enhance operating efficiencies, and provide greater flexibility for capital-intensive operations. For strategic sectors such as aerospace and defence, a more permanent framework for domestic sales from SEZs would further strengthen India’s ability to meet growing indigenous demand while remaining globally competitive.

More broadly, the Budget’s sustained focus on manufacturing-led growth, infrastructure development, and global competitiveness reinforces long-term policy clarity and investor confidence. Initiatives such as the India Semiconductor Mission 2.0, the expanded Electronics Components Manufacturing Scheme, customs duty exemptions for aircraft components and MRO-related raw materials, and the significant increase in defence spending collectively support deeper localisation, modernisation, and private sector participation. Together, these measures create a stable and enabling framework for companies to scale investments, deepen capabilities, and integrate India more firmly into global manufacturing value chains.”

CA Bharatam Satyanarayana, Chief Financial Officer & Director, Bondada Group
“The Budget sets a clear operational roadmap for the next phase of growth, driven by accelerated infrastructure development, improving renewable energy economics, and rising demand from data centres and advanced manufacturing. The focus on rail connectivity and Tier II and III hubs aligns strongly with our execution-led strategy across power, solar, and industrial infrastructure. The reduction in import duty on solar glass will lower project costs and speed up renewable deployments, enhancing overall project viability.”

Mr. Sunil Mathur, Managing Director & CEO, Siemens Limited

“We welcome the government’s consistent focus on long-term economic growth and structural transformation in the Union Budget 2026–27. The record ₹12.2 lakh crore capital expenditure allocation, sustained emphasis on infrastructure development, and a fiscal deficit target of around 4.3% reflect a disciplined and credible approach to strengthening India’s growth foundations.

The Budget’s focus on technology-led manufacturing, digital infrastructure such as data centres, and next-generation mobility including high-speed rail supports India’s ambition to emerge as a global innovation and manufacturing hub. Continued support for MSMEs, skilling, and ease of doing business will be critical to ensuring that growth remains broad-based and resilient. As industries navigate rapid technological change, the government’s emphasis on scale, execution, and investments in connectivity, smart infrastructure, and talent development provides a clear roadmap for sustainable and inclusive growth.”

About Siemens Limited

Siemens Limited is a leading technology company focused on industry, infrastructure and mobility. The Company’s purpose is to create technology to transform the everyday, for everyone. By combining the real and the digital worlds, Siemens empowers customers to accelerate their digital and sustainability transformations, making factories more efficient, cities more livable, and transportation more sustainable. In fiscal 2024, which ended on September 30, 2024, Siemens Limited (continuing operations) generated consolidated revenue of around INR 16,000 crore and employed over 6,200 people. Further information is available on the Internet  www.siemens.co.in.

Piyush Jha, Group Vice President & Head – APAC, GlobalLogic (a Hitachi Group Company)

“The Union Budget 2026–27 sends a strong signal of policy confidence, positioning technology as a core pillar of a Viksit Bharat. At a time when global macro headwinds are reshaping technology spending, the Budget provides much-needed certainty for India’s IT services and GCC ecosystem. The unified IT services safe harbour framework with a predictable 15.5% margin, along with faster closure of advance pricing agreements, significantly improves ease of doing business and reinforces India’s position as a global digital engineering and delivery hub.

Equally important is the government’s clear long-term commitment to AI-led governance and enabling digital infrastructure, while recognising that India’s next growth phase will be driven by talent. The balanced approach—combining regulatory simplicity with investments in emerging technologies such as AI and quantum computing, and stronger participation of women in STEM—marks a decisive step towards making India not just a scale destination, but a high-value and trusted technology partner to the world.”

Mr. Arjun Bajaj, Director, Videotex

“The Budget is a positive step for the consumer electronics industry, with the introduction of ISM 2.0 and a significant increase in the outlay for the Electronics Components Manufacturing Scheme to ₹40,000 crore, alongside support for the rare earth permanent magnet ecosystem. These measures are expected to strengthen the sector over the long term. Overall, the Budget’s focus on skill development, domestic manufacturing, and infrastructure lays a strong foundation for innovation and sustained competitiveness across the electronics ecosystem.”

Mr. Jalaj Gupta, Managing Director, Montra Electric

“This year’s Union Budget lays a strong foundation for India’s clean mobility and advanced manufacturing ambitions. By supporting lithium-ion cell manufacturing and rare earth processing, while strengthening semiconductor and electronics ecosystems through ISM 2.0 and enhanced component schemes, the government is enabling a truly integrated EV supply chain. These measures will deepen localisation, build skilled talent, and reinforce India’s position as a global hub for sustainable mobility and high-technology manufacturing.”

Mr. Subbu Venkatachalam, Head – Defence & Aerospace, Carborundum Universal Limited

“The Budget delivers a timely and vital boost to India’s defence manufacturing ecosystem. The recognition of critical minerals and materials science as core enablers for strategic sectors such as aerospace and defence is particularly significant. The proposal to establish Rare Earth Corridors in key mineral belts will help domestic defence manufacturers and OEMs rely on a robust, end-to-end ecosystem encompassing mining, processing, research, and manufacturing within the country.

MSMEs remain central to defence manufacturing, and the ₹10,000 crore SME Growth Fund along with the ₹2,000 crore top-up to the Self-Reliant India Fund will strengthen liquidity, mitigate risk, and support innovation-led capability building. The creation of academic zones around major industrial corridors, combined with dedicated research and training centres, will accelerate research-to-field collaboration and build a workforce skilled in future technologies.

Customs duty exemptions on raw materials for MRO-related parts, along with a broader push to deepen domestic manufacturing of aviation and defence components, mark an important step towards India’s Viksit Bharat and self-reliance goals. With increased defence allocations from FY 2025–26, we anticipate a year of accelerated momentum across defence modernisation.”

ACMA Welcomes Union Budget 2026–27

The Automotive Component Manufacturers Association of India (ACMA) welcomes the Union Budget 2026–27 presented by the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, and commends the Government for a pragmatic and forward-looking Budget that reinforces India’s manufacturing priorities, export competitiveness, and technology transition.

The continued focus on manufacturing and MSMEs—including measures to improve access to credit, promote scale, and enhance productivity—is encouraging for the auto component industry. These initiatives will support capacity expansion and enable sustained investments in technology and innovation, which are critical to global competitiveness.

ACMA also welcomes the emphasis on advanced manufacturing, clean-energy technologies, and the strengthening of domestic value chains for electric mobility and auto electronics. Support for localisation of critical components such as batteries, power electronics, and high-value electronic systems will enhance supply-chain resilience and reduce import dependence.

The Budget’s focus on exports, trade facilitation, and logistics efficiency is timely, especially in the context of global trade uncertainties. Measures aimed at improving access to export credit and addressing non-tariff barriers will further integrate Indian auto component manufacturers into global supply chains and reinforce India’s position as a reliable sourcing hub.

The industry appreciates the steps towards rationalisation of customs duties, correction of inverted duty structures, and procedural simplification, all of which will help lower costs and improve ease of doing business.

Commenting on the Budget, Mr. Vikrampati Singhania, President, ACMA and Vice Chairman & Managing Director, JK Fenner (India) Limited, said:

“The Union Budget 2026–27 lays out a clear and credible roadmap for strengthening India’s manufacturing ecosystem. The sustained focus on MSMEs, clean mobility, and export facilitation will help the auto component industry navigate global headwinds while positioning India as a competitive and trusted manufacturing and sourcing destination.”

ACMA looks forward to continued engagement with the Government to support effective implementation of the Budget proposals and to further strengthen the auto component industry as a key pillar of India’s industrial and export growth.

About ACMA: The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its membership of over 1,000 manufacturers contributes more than 90% of the auto component industry’s turnover in the organized sector. In FY2024, the combined turnover of the Auto Component Industry stood at USD 74.1 billion with USD 21.2 billion in exports and a trade surplus of USD 300 million.

MSME Growth Fund in Budget 2026 a Game-Changer for the Sector

CS (Dr.) Adv. Mamta Binani, President, MSME Development Forum – West Bengal, said:

“The announcement of a dedicated ₹10,000 crore MSME Growth Fund in the Union Budget 2026 is a monumental step towards strengthening India’s micro, small and medium enterprises at a critical juncture for the economy. This visionary initiative will provide much-needed capital to help MSMEs innovate, modernise, and scale, while also tariff-proofing the sector against global trade disruptions.

At a time when MSMEs are grappling with liquidity constraints, delayed payments, and intense competitive pressures, the Fund will act as a catalyst for improved competitiveness, better access to global markets, and deeper integration into value chains. Coupled with enhanced credit access and structural support measures announced in the Budget, this move underscores the government’s strong commitment to unlocking the full potential of MSMEs—the backbone of India’s industrial growth, employment generation, and exports. We welcome this forward-looking step, which will drive inclusive growth, strengthen resilience, and help build a truly self-reliant MSME ecosystem.”

About CS (Dr.) Adv. Mamta Binani

CS (Dr.) Adv. Mamta Binani is the President of MSME Development Forum – West Bengal. She has served as a jury member for prestigious platforms including the ICSI National Award for Excellence in Corporate Governance and CSR, the Golden Peacock Award (Institute of Directors), and the ASSOCHAM Award for Commendable CSR Activity.

She is the Vice President of the Kolkata NCLT Bar Association, Chairperson of the Merchant Chamber of Commerce – Legal Affairs Council, an Executive Committee Member of INSOL India, and a Board Member of the International Women’s Insolvency & Restructuring Confederation (IWIRC), where she also serves as Co-Chair of the India Network.

Ms. Binani is an Independent Director on the boards of leading companies including Century Ply, Balrampur Chini Mills, and Emami Limited, among others.

Mr. Ritesh Goenka, Managing Director, Damson Technologies

“The Union Budget 2026 sends a strong and reassuring signal to India’s manufacturing and electronics ecosystem. The expansion of the India Semiconductor Mission 2.0 with a substantial ₹40,000 crore outlay, along with enhanced support for the Electronics Components Manufacturing Scheme, clearly underlines the government’s commitment to building deep and resilient supply chains while strengthening indigenous IP capabilities in high-technology sectors.

This focused push on scale, technology-led growth, and supply-chain resilience will accelerate India’s emergence as a globally trusted manufacturing hub. At Damson Technologies and JUST CORSECA, we welcome the government’s sustained emphasis on ‘Make in India’ and ‘Atmanirbhar Bharat’, which provides long-term policy clarity and confidence for investments in advanced manufacturing, innovation, and talent.”

Mr. Paresh Vij, Director, U&i

“The Union Budget 2026 reinforces India’s long-term vision of becoming a global electronics manufacturing powerhouse. The expansion of the India Semiconductor Mission 2.0 with a ₹40,000 crore outlay, along with enhanced support for the Electronics Components Manufacturing Scheme, will significantly strengthen domestic value chains and reduce import dependence.

These measures will enable faster innovation, improved cost efficiencies, and greater supply-chain resilience for consumer electronics brands. At U&i, we view this as a decisive step towards empowering Indian manufacturers to compete globally while delivering high-quality, affordable products to consumers. The Budget also provides much-needed policy stability and confidence for sustained investments in manufacturing, technology, and talent.”

Mr. Amod Anand, Co-Founder & Director, Loom Solar

“The announcements around ISM 2.0, electronics manufacturing, critical minerals, and rare earth corridors signal a fundamental shift in India’s clean energy trajectory. For the solar sector, this goes well beyond capacity expansion towards building deep technological sovereignty. India is moving from being a hardware assembler to owning critical layers of the energy-tech IP stack, including control systems, forecasting platforms, and grid software that underpin modern solar and storage ecosystems.

The creation of rare earth corridors addresses a critical and often overlooked bottleneck by securing access to materials essential for high-efficiency motors, power electronics, and advanced energy systems, significantly reducing strategic dependence on China. Complementing this, customs duty exemptions for critical mineral processing, lithium-ion cell manufacturing for energy storage, and key inputs such as sodium antimonate for solar glass will strengthen domestic value chains across materials, components, and technology—forming the backbone of India’s long-term energy transition and energy security.”

Mr. Subhrakant Panda, Managing Director, Indian Metals & Ferro Alloys

“Finance Minister Nirmala Sitharaman’s ninth consecutive Union Budget is citizen-centric and reflects a clear intent to sustain growth momentum through a continued thrust on infrastructure development. The allocation of ₹12.2 lakh crore—nearly 8.8% higher than the previous year—for roads, bridges, ports, and other infrastructure projects is a welcome move that will significantly boost economic activity. Equally important, adherence to the fiscal glide path lends credibility and confidence to the Budget.

The proposal to establish dedicated rare earth corridors across four mineral-rich states, including Odisha, to reduce import dependence and strengthen domestic capabilities is a positive development for critical sectors such as green energy, electronics, defence, and electric mobility. The removal of basic customs duties on capital goods used in critical mineral processing is a timely and pragmatic step.

Overall, the government’s focus on seven strategic sectors, rejuvenation of legacy industries, and creation of champion MSMEs reflects a forward-looking approach to accelerating sustainable economic growth.”

Vishak Raman, Vice President – Sales, India, SAARC, SEA & ANZ, Fortinet

“Budget 2026 reflects India’s intent to strengthen its position as a trusted hub for digital services, cloud, and advanced technologies. Measures to simplify the IT services framework, encourage data centre investments, and accelerate AI adoption are focused on building long-term competitiveness.

As digital infrastructure scales, however, complexity and cyber risk also increase. Cyber risk today is continuous, not episodic, making resilience a core business requirement. Embedding security into digital foundations will be critical to protecting data, ensuring business continuity, and maintaining trust as India’s digital economy continues to expand.”

Mr. Kunal Bajaj, Director, Jupiter Group

“The Union Budget 2026 sends a strong and reassuring signal to India’s manufacturing sector by moving decisively from intent to execution. Continued public capital expenditure, manufacturing-focused tax reforms, and measures such as customs duty rationalisation, deferred duty payment for trusted manufacturers, and supply-chain facilitation directly enhance ease of doing business on the factory floor.

For packaging manufacturers, the emphasis on high-value manufacturing and the revitalisation of legacy industrial clusters will strengthen domestic capacity and global competitiveness. The Budget’s push towards technology adoption, including AI-led manufacturing processes, will improve productivity, quality, and operational efficiency. Sustaining GDP growth of around 7% while maintaining fiscal discipline provides the long-term policy stability entrepreneurs value most, reinforcing confidence to invest, expand capacities, and build resilient, India-anchored value chains aligned with the goals of Make in India and Viksit Bharat.”

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