Industry leaders applaud growth-oriented budget and long-term stability

New Delhi [India], February 1 (ANI): The Union Budget 2026-27 has drawn widespread applause from India's industrial heavyweights. Industry captains across finance, mining, manufacturing, and consulting have noted a strategic focus on long-term tax certainty, infrastructure spending, and the strengthening of domestic supply chains. There is a palpable sense of optimism regarding the government's push for "Viksit Bharat".

For the financial sector, the big win came in the form of extended tax benefits for the International Financial Services Centre.

Sanjay Kaul, Managing Director and Group CEO of GIFT City, pointed out that the new measures are "significantly enhancing the country's offshore financial competitiveness. The extension of the tax deduction window to 20 years out of 25 years from 10 years out of 15 years, coupled with a clearly defined 15 per cent tax rate thereafter, offers clarity and predictability that global financial institutions and investors look for when making long-term location and capital allocation decisions."

In the natural resources and manufacturing space, the focus on self-reliance was a highlight. Anil Agarwal, Chairman of the Vedanta Group, described the budget as a "a growth-oriented Budget, with a clear focus on increasing public capital expenditure and boosting manufacturing." He specifically welcomed the "keen attention to critical minerals and rare earths. The Rare Earths Corridors for mining, processing, R&D and manufacturing in Odisha, Tamil Nadu, Andhra Pradesh and Kerala will boost growth, employment and mineral security. Import duty exemption on capital goods for critical minerals processing is very timely in the current global scenario."

From a broader industrial and regional perspective, the Budget's commitment to fiscal stability was well-received. Sandeep Engineer, President of the Gujarat Chamber of Commerce and Industry (GCCI), remarked that the Budget is strategically crafted to build resilience in a volatile global environment. He appreciated the disciplined fiscal consolidation path, with the deficit estimated at 4.3 per cent of GDP, noting that with public capital expenditure proposed at Rs 12.2 lakh crore, the "Government continues to crowd in private investment." He emphasised that these measures will "accelerate investment, employment generation, and long-term economic resilience" while complementing Gujarat's existing industrial strengths.

The consulting and professional services sector saw the Budget as a bridge between India's past and its future. Sanjeev Krishan, Chairperson of PwC in India, stated that, "amidst geopolitical concerns, fragmentation, and financial tightening across the globe, this year's Union Budget lays emphasis on the collective strength of Bharat. From domestic manufacturing and infrastructure-led investments to targeted sector-specific reforms and expanding the workforce, these interventions reflect conscious choices--a clear effort to balance macroeconomic priorities with micro-level necessities."

Manufacturing associations also found plenty to celebrate in the sectoral schemes. Nirmal K Minda, President of ASSOCHAM, highlighted the strong push to domestic manufacturing through targeted schemes in biopharma, electronics, and semiconductors. He mentioned that initiatives like the Indian Semiconductor Mission 2.0 and the revival of legacy clusters will strengthen value chains and reduce logistics frictions. Minda believes these measures will "accelerate India's transition towards globally competitive, high-value manufacturing."

Finally, the ease of doing business remained a central theme for trade bodies. Anant Goenka, President of FICCI, welcomed the steps taken toward tax simplification and decriminalisation. He noted that, "the incentives and tax certainty measures aimed at attracting global capital are a strong positive and will further reinforce India's position as a preferred destination for foreign investment." (ANI)

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