India Inc backs budget 2026 push on manufacturing, infra and competitiveness

NEW DELHI: India Inc on Sunday said that Union Budget 2026 enhances the country’s competitiveness globally while boosting industrial self-sufficiency even as increased allocation for infrastructure development will aid economic growth.“This Budget focuses on enhancing India’s competitiveness in the world, takes meaningful steps towards atmanirbharta and enables a wider participation in the benefits of economic growth. The emphasis on frontier and strategic manufacturing sectors, including the launch of enhanced schemes such as Biopharma Shakti and the Semiconductor Mission (ISM 2.0), reflects a clear commitment to building global-scale manufacturing capabilities. Strengthening domestic value chains and reducing critical import dependencies will be key to India’s future industrial leadership,” Anish Shah, Group CEO & MD of Mahindra Group, said. Shah said the significant increase in capital expenditure to Rs 12.2 lakh crore for FY27 underscores an “unambiguous policy focus” on infrastructure, regional development and job creation across the country. “This will play a pivotal role in crowding in private investment, enhancing productivity and supporting the growth of tier-2 and tier-3 cities as emerging economic hubs.”Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, called it a “bold Budget” that combines growth with inclusion. “The strong emphasis on skilling, alongside sustained investments in science, innovation, and research are timely and will strengthen domestic capabilities, advancing import substitution in critical sectors.”Mittal said that bolstering infrastructure and logistics, with a focus on energy efficiency and impetus for the data centre ecosystem, will further reinforce confidence in the digital economy.Shailesh Chandra, president of Indian auto industry body SIAM, said the Budget continues its focus on long-term, sustained economic growth with a strong emphasis on manufacturing, infrastructure including freight corridors & waterways and fiscal prudence. “The decision to raise the capital expenditure… will provide a strong impetus to demand creation and industrial activity, including the Automobile sector.”Chandra said that enhanced support for electronic components manufacturing, setting up dedicated corridors for mining and processing of rare earth, along with initiatives to establish high-tech tool rooms and supporting container manufacturing, will develop supply chain resilience and help in streamlining exports. “The allocation of 4,000 e-buses for the Purvodaya States will accelerate the transition toward sustainable public mobility solutions.”Santosh Iyer, MD & CEO of Mercedes-Benz India, said the Budget's focus on infrastructural development, with addition of Rs one lakh crore in capex, is a “step in the right direction” in developing the country’s evolving mobility ecosystem.“Better highways and improved intercity connectivity have historically driven luxury car demand in India. The fiscal prudence reflected in the 4.3% deficit target, combined with strong focus on exports, sends a strong signal of macroeconomic stability, which may lead to a less volatile currency. Overall, the emphasis of the budget is on strengthening ease of doing business, and the deferral of customs duty payments up to 30 days, can improve cash flow significantly. This budget primarily focuses more on long-term gains, rather than immediate ones,” Iyer said.Hardeep Singh Brar, president & CEO of BMW Group India, said the Budget has an intent to balance fiscal consolidation with the need to sustain growth momentum. “The reduced estimates for fiscal deficit reinforce assurance in India’s macro-economic stability and commitment to fiscal discipline. A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure. At the same time, an increase in capital expenditure will accelerate infrastructure development, improve road quality and enhance mobility ecosystems.”Brar said that the govt’s focus on logistics improvement such as accelerating customs clearance of goods will make them available for manufacturing activity faster. “Also, the reforms in tax compliances like longer validity of Advance Rulings in customs duty (from 3 to 5 years) will give more certainty to business operations.”Balbir Singh Dhillon, Brand Director of Audi India, said the Budget’s emphasis on infrastructure and capital expenditure is a “positive enabler” for India’s mobility landscape. “Improved highways and intercity connectivity, especially across Tier-II and Tier-III markets, are strengthening the ownership and usage ecosystem for luxury automobiles. The government’s focus on fiscal prudence, macroeconomic stability, and ease of doing business reinforces confidence for long-term investments in the automotive sector.”Dhillon said initiatives like the development of rare earth corridors and the advancement of ISM 2.0 under the India Semiconductor Mission are timely and critical. “They signal a clear intent to build resilient domestic supply chains and a technology-driven manufacturing ecosystem that will support the future of automotive and electric mobility in India.”Stéphane Deblaise, CEO of Renault Group India, said that the Budget sends a strong and reassuring signal of policy continuity and intent for India’s manufacturing-led growth. “Anchored in the Kartavya pillars for Viksit Bharat, the Budget demonstrates a clear commitment to building resilience, competitiveness and technological depth across strategic sectors. The progression to India Semiconductor Mission 2.0, with its focus on equipment, materials, full-stack Indian IP and supply-chain strengthening, aligns closely with the evolving needs of the industry. The targeted push to reduce critical import dependencies, through initiatives on rare earth magnets and continued customs duty exemptions on capital goods for lithium-ion cells, creates confidence for deeper localisation and sustainable mobility.”Arun Malhotra, founder of Brandman Retail that runs stores of brands such New Balance, Timberland, On Running, Gfore, Sperry, and Jansport, said the Budget strengthens sports goods manufacturing, innovation and affordability. “These initiatives resonate deeply with India’s growing active lifestyle culture and retail demand. By supporting high-quality local production and enhancing access to best-in-class equipment, this budget not only empowers athletes and sports enthusiasts but also unlocks fresh opportunities for the retail ecosystem.”On the digital side, Manoj Kumar Singh, Director General of the Digital Infrastructure Providers Association (DIPA), said the Budget works towards creating digital infrastructure. “The tax holiday until 2047 for cloud providers leveraging Indian data centers is bold policy-making that positions us as a global hub while advancing our $3 trillion digital economy ambition. What's truly significant is recognizing digital infrastructure as the great enabler.”Singh said the Rs 10,000 crore SME Growth Fund and Rs 2,000 crore top-up for the Self-Reliant India Fund will be big enablers for the economy.In infrastructure, developer ACE group said the focus on infra and urban development will provide growth to the real-estate sector. “The Budget’s continued emphasis on infrastructure and urban development is a positive signal for well-planned real estate projects. With cities clearly being positioned as engines of growth, sustained investment in urban infrastructure, along with provisions focused on enhanced connectivity and large-scale projects such as the announcement of seven new high-speed rail corridors, the push for modern infrastructure development across tier-II and tier-III cities, and a broader Rs 10,000 crore growth-oriented funding framework supporting enterprise and urban activity, will play a key role in shaping premium housing demand,” Ajay Chaudhary, Chairman & MD of ACE Group, said.Players in the space industry said the Budget’s emphasis on easing processes and creating a more investment friendly environment for science and technology will encourage greater private sector participation. “The increase in ISRO’s allocation to Rs 13,705.6 crore in FY 2026–27 is an important signal that will help support deeper private sector participation in ISRO led programmes across launch vehicles, satellites and scientific missions,” said Lt. Gen. AK Bhatt (retd.), Director General of Indian Space Association (ISpA).Bhatt said the proposal on expanding telescope infrastructure and learning facilities is a “meaningful step towards strengthening India’s scientific base” in astrophysics and astronomy. “Together, these measures can improve observational capabilities, enable long term research and strengthen collaboration between ISRO, academia and industry, gradually enhancing India’s contribution to global space science and the broader space ecosystem.”Pawan Goenka, Chairman of IN-SPACe (Indian National Space Promotion and Authorization Centre), said the Budget strengthened the foundations required for sustained economic growth. “With wide-ranging reforms across sectors, the focus on manufacturing with a boost to creating Champion MSMEs, and infrastructure reflects an understanding that scale and resilience are built through stable policy and institutional support.”Goenka said that simplification of tax processes, decriminalisation of compliance-related provisions, and GST rationalisation will ease adherence, improve predictability for businesses, and encourage entrepreneurship. “The proposal to establish dedicated Rare Earth Corridors across mineral-rich states is a timely step towards securing critical materials, strengthening domestic value chains, and reducing strategic dependencies. At the same time, targeted customs duty exemptions to support domestic manufacturing and supply-chain integration will further contribute to a more competitive, resilient economy where businesses can invest with confidence and plan for the long term.”