Union Budget 2026: What industry leaders say about reforms, capex push

Union Budget 2026 drew mixed reactions from industry leaders, who welcomed the growth and capex push while stressing the need for execution clarity, long-term policy support and reform follow-through

Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27 in Parliament, outlining the government’s plans across growth, reforms and key sectors. The Budget drew wide reactions from industry leaders, who weighed in on its impact on investment, jobs and long-term growth.

 

Here’s a look at how industry leaders reacted to the Union Budget 2026.

 

Financial services, credit and capital markets

 

L&T Finance: Balance between reforms, growth and capex

 

Sudipta Roy, Managing Director (MD) and Chief Executive Officer (CEO) of L&T Finance, said the Union Budget 2026–27 reflects policy continuity while pushing structural reforms and capital-led growth.

 

 

He described the Budget as “a bold statement” that keeps reform momentum intact, supports labour-intensive sectors and maintains fiscal discipline, while backing growth through a targeted ₹12.2 trillion capital expenditure plan for FY27.

 

Brickwork Ratings: Stronger debt markets, better MSME credit flow

 

Manu Sehgal, CEO of Brickwork Ratings, said the Budget takes key steps to strengthen India’s debt and credit ecosystem.

 

“It takes meaningful steps towards deepening India’s debt and credit markets,” he said, highlighting incentives for municipal bonds, a market-making framework for corporate bonds and MSME-focused measures aimed at improving liquidity, risk pricing and long-term capital formation.

 

Technology and digital infrastructure

 

IndieVisual: AI and creative ecosystem get a push

 

Prashanth Naik, co-founder and head of technology and creative at IndieVisual, said the Budget 2026 outlines a broad push to strengthen India’s innovation and creative ecosystem.

 

He said the emphasis on AI adoption and innovation funding is “encouraging”, adding that consistent execution across AI missions, AVGC initiatives and MSME-focused platforms could help India scale applied, AI-driven creative capabilities globally.

 

“India’s young talent base continues to drive innovation across technology and creative sectors, and with AVGC alone expected to require nearly two million professionals by 2030, sustained policy support and execution can help strengthen India’s position in applied, AI-driven creative solutions globally,” Naik said.

 

Microsoft India: Digital infrastructure seen as strategic

 

Puneet Chandok, President, Microsoft India & South Asia, welcomed the Budget’s focus on data centres, cloud and AI infrastructure.

 

“The Budget’s focus on data centres, cloud and AI infrastructure is equally significant. Long-term policy certainty recognises that digital infrastructure is now strategic national infrastructure. As AI adoption accelerates across sectors, secure and resilient compute capacity will underpin public services, enterprise innovation, and long-term competitiveness,” he said.   

 

  EY India: Long-term tax clarity for tech sector

 

Nitin Bhatt, technology sector leader at EY India, said the Budget sets the stage for sustained growth in the technology sector by easing compliance and offering tax certainty.

 

He said the measures “provide much needed long-term certainty and ease compliance obligations”, while strengthening India’s position as a global technology and delivery hub.

 

“The proposed tax holiday until 2047 for foreign cloud service providers operating through Indian data centres underscores a strong policy push towards data localisation and domestic infrastructure creation,” Bhatt said.

 

Hitachi: Focus on data centres and cloud

 

Hemant Tiwari, Managing Director – India & SAARC at Hitachi Vantara, said the Budget sharpens India’s focus on world-class digital and data infrastructure.

 

Calling it “a significant step in strengthening India’s digital and data infrastructure”, he said the long-term incentives and clear safe-harbour framework for data centres and cloud services could help India emerge as a global hub.

 

“By supporting infrastructure development across tier-2 and tier-3 cities and facilitating a robust digital services ecosystem, the Budget positions India to become a global hub for data, cloud and IT services,” he said.

 

Electronics and semiconductors

 

PwC India: ISM 2.0 a transformative step

 

Sujay Shetty, Managing Director (ESDM & semiconductor) at PwC India, said the Budget sharpens India’s ambition to scale up its electronics and semiconductor ecosystem.

 

He described the launch of ISM 2.0 as “a transformative step forward” that could strengthen domestic manufacturing, Indian IP creation, supply chains and skill development.

 

“The launch of ISM 2.0 represents a transformative step forward, prioritising domestic production of equipment and materials, full-stack design capabilities, development of Indian IP, resilient supply chain fortification, intensified industry-led R&D, and a robust skilled workforce through dedicated training initiatives,” Shetty said.

 

FUJIFILM India: Boost for capital-intensive industries

 

Koji Wada, Managing Director at FUJIFILM India, said the ISM 2.0 announcement is a positive signal for capital-intensive sectors.

 

“The announcement of ISM 2.0 to support equipment and materials is a promising sign which will support capital-intensive industries like semiconductors and create an ecosystem in India. This will have a direct impact on our ‘Make in India’ initiatives and motivate us to accelerate our efforts to join the mission of ‘Viksit Bharat’,” he said.   

 

Manufacturing and MSMEs

 

Trilegal: Manufacturing central to ‘first kartavya’

 

Delano Furtado, Partner – Corporate Practice at Trilegal, said that manufacturing lies at the core of the ‘first kartavya’ announced in the Budget.

 

“The manufacturing sector, particularly the focus on seven strategic and frontier sectors, rejuvenating legacy industrial sectors and creating ‘Champion MSMEs’, forms part of the ‘first kartavya’ introduced by the finance minister in the Union Budget 2026–27,” he said.   

 

Mahindra Group: Support for frontier sectors and SMEs

 

Anish Shah, Group CEO & MD, Mahindra Group, said the emphasis on strategic manufacturing reflects a clear intent to build global-scale capabilities.

 

“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,” he said.

 

He also welcomed the proposal for a ₹10,000 crore SME growth fund, calling it “a positive step towards enabling future job creation, supporting enterprise scaling, and boosting competitiveness of small and medium businesses”.

 

Logistics and trade

 

Blue Dart: Roadmap for logistics-led growth

 

Blue Dart Managing Director Balfour Manuel said Budget 2026 provides a clear roadmap for logistics-led growth.

 

Calling it “a decisive, action-oriented roadmap”, he said the focus on multimodal infrastructure, cross-border e-commerce and cost reduction will help MSMEs and exporters integrate into global value chains.

 

“For the logistics sector, announcements around new dedicated freight corridors, waterways, high-speed rail connectivity and enhanced container manufacturing capacity are particularly significant,” Manuel said.

 

Defence and indigenisation

 

Ventura: Defence emerges as key beneficiary

 

Hemant Majethia, CEO and founder of Ventura, said the Budget focuses on continuity rather than sweeping changes.

 

He noted that defence has emerged as a major beneficiary, as the government continues to push indigenisation and domestic manufacturing.

 

Jeh Aerospace: Long-term intent for defence manufacturing

 

Venkatesh Mudragalla, co-founder and COO at Jeh Aerospace, said the Budget reflects a steady shift towards strengthening aerospace and defence manufacturing.

 

“Union Budget 2026 reflects a steady and deliberate shift towards strengthening India’s aerospace and defence manufacturing capabilities,” he said.   

 

Healthcare and biopharma

 

HDFC ERGO: Push towards ‘insurance for all’

 

Parthanil Ghosh, Executive Director at HDFC ERGO General Insurance, said the Budget strengthens a citizen-centric insurance ecosystem.

 

“With the Budget’s continued focus on growth, inclusion and long-term resilience, India is steadily moving towards the vision of Viksit Bharat 2047,” he said, citing initiatives such as Biopharma Shakti and duty exemptions on cancer medicines.

 

Dr Batra’s: Shift towards preventive care

 

Dr Mukesh Batra, Founder-Chairman Emeritus of Dr Batra’s Healthcare, said Budget 2026–27 signals a move towards preventive and integrated healthcare.

 

“It signals a clear policy shift towards strengthening preventive and integrated healthcare,” he said, especially through regional medical hubs combining modern diagnostics with AYUSH systems.   

 

Crypto and Web3

 

CoinSwitch: Compliance up, growth concerns persist

 

Ashish Singhal, co-founder of CoinSwitch, said the Budget tightens compliance standards for the crypto ecosystem.

 

He called penalties for reporting delays “a positive milestone” but warned that high taxes and restrictions could still slow Web3 growth.

 

“The 1 per cent TDS, lack of offset of losses and the 30 per cent flat capital gains rate create an asymmetric environment for genuine participation,” Singhal said.