NE BUSINESS BUREAU
CHENNAI/MUMBAI/AHMEDABAD/NEW DELHI, FEB 1
The Union Budget 2026–27 has struck a rare balance between ambition and discipline, winning strong endorsement from banking leaders, industry captains, healthcare pioneers, exporters and inclusion advocates alike. Anchored in record public capital expenditure, MSME-focused liquidity, technology-led manufacturing and inclusive skill development, the Budget lays down a credible roadmap for Viksit Bharat amid global uncertainty, while reinforcing India’s position as a resilient, future-ready growth engine.
Banking & MSMEs: Credit, Confidence and Continuity
Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank, said the Budget offers “a clear roadmap for all-round growth,” anchored in accelerating growth, capacity building and inclusive participation. He highlighted the ₹10,000 crore SME Growth Fund, mandatory TReDS usage for CPSEs, and initiatives such as ISM 2.0, Bharat Vistaar AI for agriculture, Data Centre incentives and credit-linked subsidies for animal husbandry and fisheries as strong enablers for banks to expand targeted MSME and rural credit.
Ramesh Babu, MD & CEO, Karur Vysya Bank, pointed to fiscal consolidation and a lower debt-to-GDP trajectory as key positives, saying these measures will enhance banks’ flexibility to expand priority sector lending. He underlined support for MSMEs through revived industrial clusters, liquidity via TReDS, the SME Growth Fund and the Self-Reliant India Fund, while welcoming Corporate Mitras to ease compliance for small enterprises in Tier-II and Tier-III cities.
Challa Sreenivasulu Setty, Chairman, SBI and IBA, said the Budget maintains policy continuity and tax predictability while balancing rural and urban priorities. He termed the SME Growth Fund and TReDS mandate as major MSME growth drivers, adding that capex of ₹12.2 lakh crore, continued fiscal consolidation, Infrastructure Risk Guarantee Fund, CPSE asset monetisation and GIFT City tax holiday extension strengthen the financing architecture of Viksit Bharat.
Salee S Nair MD & CEO of Tamilnad Mercantile Bank “The Union Budget reflects a clear recognition that the banking system is now in a position to shift from balance-sheet repair to purposeful credit expansion. Measures such as mandating TReDS for CPSE–MSME transactions and strengthening credit guarantee mechanisms will improve cash-flow certainty, reduce working-capital stress, and enable banks to lend with sharper risk visibility. At Tamilnad Mercantile Bank, these reforms reinforce our focus on MSMEs, agriculture and retail lending, where disciplined credit delivery can translate policy intent into sustainable, grassroots growth.”
Manufacturing, Infrastructure & Real Estate: Visibility and Momentum
Navin Makhija, MD, The Wadhwa Group, said the sharp rise in public capex underscores the government’s commitment to infrastructure-led growth across transport, logistics and urban connectivity. He noted that policy support for REITs and InvITs, combined with clarity on corporate taxation and regulatory stability, will deepen institutional capital flows and boost residential, commercial and office demand.
Bhavesh Varmora, Chairman & MD, Varmora Group, said the Budget’s focus on infrastructure, manufacturing and resilient supply chains will directly benefit construction and building materials. He added that emphasis on high-speed rail, waterways and technology-driven growth inspires confidence for sustained investment across urban development and real estate.
Vinit Bediya, Chairman & MD, Silver Consumer Electricals, said the Budget reinforces India’s clean energy and manufacturing agenda, providing policy continuity for renewable energy, energy efficiency and domestic manufacturing. He highlighted benefits for MSMEs, automation, localisation and innovation under Make in India and Atmanirbhar Bharat.
Ganesh Mani, CEO of Switch Mobility, said “This budget marks a defining moment for commercial electrification. The ₹1,500 crore PM E-DRIVE allocation for e-buses and e-trucks, along with the Purvodaya Initiative’s 4,000 e-buses for Eastern states, makes electric public transport a national priority. With customs duty exemptions on critical minerals and charging infrastructure development, the government is addressing the entire value chain, from manufacturing to deployment. The road ahead is clear: clean mobility in India is no longer experimental; it is industrial and irreversible.”
Healthcare, AYUSH & Biopharma: From Volume to Value
Ajay Sharma, Director, Shree Baidyanath Ayurved Bhawan, welcomed the focus on skill development, healthcare training and upgrading AYUSH pharmacies and drug-testing labs, saying it will enhance quality, safety and global credibility of Ayurveda and allied systems.
Dr GSK Velu, Chairman & MD, Trivitron Healthcare, Maxivision Eye Hospitals and Neuberg Diagnostics, said Budget 2026 accelerates India’s shift from volume-driven to value-driven leadership in biopharma, biotech and medical devices. He highlighted the ₹10,000 crore commitment to the life sciences ecosystem, regulatory reforms, expanded allied healthcare workforce and strengthened district hospital infrastructure as key enablers of globally aligned healthcare delivery.
Srikanth Kandikonda, Chief Financial Officer, ManipalCigna Health Insurance, said “The Union Budget 2026 reflects the government’s continued focus on strengthening India’s healthcare ecosystem.
Key announcements such as the ₹10,000-crore BioPharma Shakti initiative, strengthening of the Central Drugs Standard Control Organisation through faster scientific approvals, exemptions on select cancer and rare disease drugs, and continued investments in medical education, rural healthcare, hospital capacity, and digital health platforms are positive steps towards improving access, quality, and affordability of care. The expansion of allied health professionals, creation of advanced mental health institutions including NIMHANS 2.0, and support for traditional systems of medicine through upgraded AYUSH infrastructure further strengthen the overall healthcare delivery ecosystem.
From an industry standpoint, the Budget provides an enabling environment for health insurers to enhance affordability, encourage wider adoption of health insurance, and support the broader goal of healthcare security for all.”
Services, Skills & Inclusion: Talent Meets Opportunity
Thyagu Valliappa, Founder of SCALE and Vice Chairman, Sona Valliappa Group, described the proposed ‘Education to Employment and Enterprise’ Standing Committee as a forward-looking step to align skills with the evolving services economy. He also welcomed Safe Harbour provisions, renewed SEZ incentives, focus on electronics, semiconductors, data centres, AYUSH, marine manufacturing and tourism as long-term growth drivers.
Umesh Uttamchandani, MD, Dev Accelerator, said the Budget delivers a decisive blueprint for decentralised growth, with infrastructure expansion in Tier-2 and Tier-3 cities boosting the hub-and-spoke model for flexible workspaces. He highlighted the IndiaAI Mission, tech upskilling, IFSCA tax exemptions and MSME funding as catalysts for GCC expansion beyond metros.
Shanti Raghavan, Founder, EnAble India, said the Budget’s focus on aspiration-led skill development can unlock livelihoods across 21 disability types. She noted that strengthening inclusive employment models will expand the Purple Economy, recognising persons with disabilities as active contributors to economic growth and nation building.
Exports, Gems & Jewellery: Speed, Liquidity and Global Reach
Kirit Bhansali, Chairman, GJEPC, welcomed the growth-focused Budget, highlighting transformative customs reforms, trust-based clearances, advance filing of Bills of Entry and extended duty deferment for AEOs. He said removal of the ₹10 lakh courier export cap, concessional DTA sales from SEZs, extension of duty-free LGD seed imports till 2028, MSME liquidity via the SME Growth Fund and TReDS, and a new National Institute of Design will strengthen manufacturing, exports and India’s goal of $100 billion jewellery exports by 2047.
MSMEs & Capex: How Budget 2026 Turns Spending into Jobs and Scale
Why MSMEs Matter
India’s MSMEs contribute nearly 30% of GDP, over 45% of exports, and employ more than 110 million people. Budget 2026 places MSMEs at the centre of growth by directly linking record public capital expenditure with easier credit, faster payments and market access.
The Capex Engine
- ₹12.2 lakh crore public capex creates immediate demand for MSMEs across construction, engineering, logistics, electricals, textiles, building materials and services.
- Large infrastructure projects act as order multipliers, pulling thousands of small suppliers into formal value chains.
The Credit Unlock
- ₹10,000 crore SME Growth Fund to create globally competitive “Champion MSMEs.”
- Mandatory TReDS for CPSE purchases ensures faster invoice discounting and working capital flow.
- ₹7 lakh crore liquidity via TReDS improves cash cycles and reduces MSME dependence on informal credit.
From Survival to Scale
- Revival of legacy industrial clusters and targeted capital support boost productivity.
- Corporate Mitras help MSMEs, especially in Tier-II and Tier-III cities, navigate compliance and regulation.
- Stronger linkages with banks, NBFCs and credit guarantee mechanisms lower risk and borrowing costs.
Jobs, Formalisation & Exports
- Capex-led demand plus MSME liquidity accelerates job creation, formalisation, and entrepreneurship.
- Export enablers—customs reforms, faster clearances and e-commerce support—help MSMEs access global markets.
The Big Picture
By combining record capex with targeted MSME financing, Budget 2026 transforms government spending into a growth flywheel—turning infrastructure investment into jobs, productivity gains and globally competitive Indian enterprises.
