UNION BUDGET 2026-27: INDUSTRY REACTIONS

Union Finance Minister Nirmala Sitharaman today presented the Budget for 2026-27. It has raised the public capital to a record ₹12.2 lakh crore to boost infrastructure — a key driver of manufacturing and jobs. The fiscal deficit is expected to be around 4.3–4.4 % of GDP as the government balances growth with consolidation.

The Budget also prioritises high-value manufacturing, aiming to strengthen domestic production, supply chains and global competitiveness. There are major outlays for sectors like pharmaceuticals, semiconductors, and emerging technologies, with semiconductor ecosystem development expanded under the Semiconductor Mission 2.0.

Here are major industry reactions to the budget (in reverse chronological order):

Saket Mehra, Partner, Auto and EV, Grant Thornton Bharat

The announcement to develop industrial corridors across Odisha, Karnataka, Andhra Pradesh, and Tamil Nadu reinforces the Government’s vision to reduce import dependency for manufacturing components critical to the EV ecosystem. This development will accelerate the rollout of the INR 7,280‑crore scheme announced in 2025, which aims to expand India’s capabilities from mining to the entire value‑chain system, strengthening domestic manufacturing and enabling end‑to‑end value creation.