The city’s business captains described the 2026 Union budget as “fiscally sound and strategically aligned” with India’s long-term ambitions, despite gaps in critical areas.
Fiscal discipline impresses industry
Keshav Bhajanka, Vice President of the Indian Chamber of Commerce (ICC) and Executive Director of Century Plyboards said the government had executed a difficult balancing act.
“Let’s give credit where credit is due. It was no easy task,” he said. “The economy is facing global pressures and the kind of wars caused by an over-eager US President have not helped. But the Budget shows strong fiscal prudence. A 4.3 per cent deficit is something I did not think we’d be able to achieve.”
Bhajanka said the more than Rs. 12 lakh crore infrastructure outlay would help stabilise sectors affected by external shocks and restore momentum. “It is a measured Budget, not flashy, but it is a solid step in the right direction.”
Mamta Binani
“The ₹10,000-crore MSME Growth Fund is a timely and transformative intervention for the sector. At a moment when MSMEs are battling liquidity pressures and rising global competition, this fund will provide the capital needed to modernise, scale and integrate more strongly into value chains. It clearly signals the government’s commitment to strengthening the backbone of India’s industry, employment and exports,” said Mamta Binani, president, MSME Development Forum – West Bengal.
A wider embrace of new and emerging industries
Parthiv Neotia, Senior Vice President of ICC and Joint Managing Director of Ambuja Neotia Holdings, focused on the Budget’s broad sectoral inclusivity.
“This year, the Budget has been very inclusive,” he said. “It recognises the rise of sectors like semiconductors, AI, the creative industries, hospitality, and fisheries. These are all areas where India has seen remarkable growth lately.”
He said the renewed push in bio-pharma and medical innovation was well-timed. “With India’s growing burden of non-communicable diseases, investment in bio-pharma is essential. And five new medical tourism hubs will position the country very competitively in the region.”
Neotia noted that moves in logistics—new highways and 20 additional waterways—would further ease operating costs for growing industries.
Tech sector seeks sharper thrust on AI and competitiveness
Harish Agarwal, Partner at Ernst & Young LLP, highlighted the Budget’s continued support for information-oriented sectors but said sharper measures were needed to strengthen India’s global competitiveness.
“There is clear direction in reducing the deficit and extending safe harbour for IT companies,” he said. “These steps matter when IT firms are under pressure from the onset of AI and global visa issues.”
He said India needs to make a larger commitment to emerging technologies. “Countries like the US and China are surging ahead in AI. Even the UAE is moving faster than us. I was expecting more targeted investment to ensure India does not fall behind.”
Agarwal added that the Budget should also have addressed resilience against global tariff actions and done more to unlock private capital expenditure. “Improving competitiveness and livability will be essential if we want to retain talent and attract investment.”
Financial sector wants focus on long-term stability
Dr Rajeev Singh, Director General of ICC said the predictable fiscal stance and investor-friendly measures provide confidence to both industry and global partners.
“This is a balanced and carefully thought-out Budget that builds capacity and positions India strongly for the decade ahead,” he said.
Former Deloitte senior adviser Atanu Sen said the Budget’s references to banking were positive but lacked concrete measures to address pressing sector concerns.
“Yes, a committee on banking has been announced, but the challenges are structural,” he said. “Banks are struggling on the liability side. Deposit mobilisation has become difficult, and taxation parity with other investment options remains unresolved.”
He said the insurance and pension sectors, critical for long-term national security, received little attention. “If we want insurance for all by 2047, these gaps need addressing. The nod to corporate and municipal bond indices is welcome, but the sector needs deeper reform.”
Real estate upbeat on infrastructure-led demand
Merlin Group Managing Director Saket Mohta said the Budget strengthens confidence in long-term macroeconomic stability and real estate demand.
Saket Mohta.
“It reflects a continued emphasis on growth through capital investment and urban infrastructure,” he said. “The focus on connectivity and balanced regional development will support real estate demand in a meaningful way over the medium to long term.”
He said the sector sees value in predictable policy cycles that prioritise capital expenditure and regional growth corridors.
Affordable housing concerns remain unresolved
CREDAI West Bengal President and Merlin Group Chairman Sushil Mohta welcomed the infrastructure boost but said the Budget missed an opportunity to revive the affordable housing segment.
“We appreciate the thrust on highways, railways, logistics and metros, which will open up new real estate corridors,” he said. “Ease of doing business measures like faster approvals and digitisation are also encouraging.”
Sushil Mohta.
He warned that outdated caps for affordable housing were constraining supply. “Affordable housing is economic infrastructure. Without updated price and area limits, the segment may shrink further. There was no movement on GST rationalisation or additional tax incentives either.”
He said the absence of targeted support risks pushing more families into informal housing and lengthening commutes for working households.