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Budget 2026 Reaction: How India Inc is reading major announcements

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Budget 2026 Reaction: Following the Budget announcements, reactions have been mixed. Here's how industry experts are reacting to the Finance Minister's announcements:

Budget 2026 Reaction: How India Inc is reading major announcements

Budget 2026 Reaction: Union Finance Minister Nirmala Sitharaman has presented her ninth Union Budget in Parliament on February 1, 2026. From taxpayers and women to farmers and students, the Budget 2026 has something for everyone.

Some of the key announcements of Budget 2026 include:

Projects fiscal deficit at 4.4 per cent in FY26 and 4.3 per cent the following year, and net market borrowing at Rs 11.7 lakh crore.
Expects the debt-to-GDP ratio to fall to 55.6 per cent in 2026-27, from 56.1 per cent in 2025-26.
Capital Expenditure has been increased to Rs 12.2 lakh crore for FY 2026–27, up from Rs 11.2 lakh crore.
Projects a total expenditure of Rs 53.5 lakh crore for FY27.

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The Modi government said the Union Budget 2026–27 is driven by “Yuvashakti” and guided by the “three kartavyas”, viewing the next five years as a crucial phase in the shift from infrastructure-led growth to a productivity-driven Viksit Bharat.

Following the Budget announcements, reactions have been mixed. Some are praising it, while others are criticising it.

Here's how industry experts are reacting to the Finance Minister's announcements:

Follow updates here:

03 Feb 2026, 12:31 PM (IST)

Mr. Gwanggu Lee, MD & CEO, Kia India Private Limited, on Union Budget 2026–27

Budget 2026 Reactions: Mr. Gwanggu Lee said the Union Budget 2026–27 lays a strong foundation for long-term economic growth by focusing on manufacturing, infrastructure development and fiscal stability. He highlighted that higher spending on roads, railways, freight corridors and regional connectivity will create new business opportunities and ensure balanced growth across India. According to him, the push for advanced manufacturing, electronics, battery production, rare earth supply chains and MSME support will help India emerge as a global manufacturing hub under the Atmanirbhar Bharat vision.

03 Feb 2026, 11:54 AM (IST)

Budget 2026 Reactions: 3 'Kartavyas' lay foundation for all-round growth and jobs, says IOB CEO

Indian Overseas Bank CEO sees Budget 2026-27 as a clear roadmap for all-round development, striking a balance between industrial expansion and job creation and laying a strong foundation for a developed India.

"The Union Budget 2026-27 is a clear roadmap for all-round growth, balancing industrial scaling with job creation, and laying a robust foundation for a Viksit Bharat. Anchored in the three 'Kartavyas'—accelerating growth, building capacity, and ensuring inclusive participation, it reflects a vision that resonates strongly with the banking sector and institutions like Indian Overseas Bank," IOB MD & CEO Ajay Kumar Srivastava said.

03 Feb 2026, 10:57 AM (IST)

Budget 2026 Reaction: Debt consolidation to give banks greater lending flexibility, says KVB CEO

Karur Vysya Bank's MD & CEO sees the Union Budget 2026-27 as a forward-looking roadmap to strengthen inclusive economic growth. He noted that the budget’s fiscal discipline and targeted support for MSMEs, rural enterprises and inclusive technology will strengthen banks’ ability to expand credit and drive balanced, inclusive growth.

"The continued focus on fiscal consolidation, including a reduction in the debt-to-GDP ratio, is expected to give banks greater flexibility to expand priority sector lending, supporting economic stability and balanced urban–rural development," CEO Ramesh Babu said.

"Key measures for MSMEs, including the revival of legacy industrial clusters, additional capital infusion into the Self-Reliant India Fund, enhanced liquidity and transaction settlement facilities, and liquidity support through TREDS and the SME Growth Fund, are expected to boost credit absorption, encourage formalisation, promote entrepreneurship, and sustain job creation," he added.

02 Feb 2026, 5:54 PM (IST)

Budget 2026 Reaction: Venkat Chalasani, chief executive, AMFI, on Union Budget 2026 and capital market reforms

The Union Budget 2026 reinforces the government’s strong intent to deepen India’s capital markets and strengthen the role of long-term savings in supporting sustainable economic growth.

AMFI has long highlighted that a well-developed debt market offers greater funding flexibility to both corporates and the government, while enabling efficient use of the country’s vast domestic savings. In this context, the Budget’s emphasis on corporate bond market development is a positive step. Proposals such as a dedicated market-making framework and the introduction of total return swaps in corporate bonds are expected to improve market depth, enhance liquidity, and strengthen risk management mechanisms.

02 Feb 2026, 3:13 PM (IST)

Budget 2026 Reactions: Automotive Component Manufacturers Association of India (ACMA) Welcome Union Budget 2026 for Boost to Manufacturing and Exports

Automotive component manufacturers, led by the Automotive Component Manufacturers Association of India (ACMA), have welcomed the Union Budget 2026–27, calling it pragmatic and forward-looking. Commenting on the Union Budget 2026, the industry said the government’s strong focus on manufacturing, MSMEs, exports and technology transition will support long-term growth of the auto component sector. The industry appreciated the focus on exports, trade facilitation and logistics efficiency, especially amid global uncertainties. Rationalisation of customs duties, correction of inverted duty structures and procedural simplification are expected to lower costs and improve ease of doing business.

"The Budget provides a clear roadmap to strengthen India’s manufacturing ecosystem and position the country as a trusted global sourcing hub," Vikrampati Singhania, President, ACMA, said.

02 Feb 2026, 2:12 PM (IST)

Budget 2026 Reactions: Union Budget strengthens mobility, manufacturing ecosystem: Arnab Banerjee, MD & CEO, CEAT

Commenting on the Budget 2026, Arnab Banarjee said that the The Union Budget establishes a robust economic foundation which enables India to develop its transportation and manufacturing sectors through increased funding for infrastructure projects and development of freight and logistics systems and dedicated assistance to building construction and equipment production. This development leads to increased demand for tyres in both commercial and passenger vehicle markets while the development of Tier II and Tier III cities creates permanent mobility needs which extend beyond metropolitan areas thus establishing a stable market for the automotive and tyre sector.

"The industrial sector will develop a manufacturing workforce which possesses future-ready skills through its dedication to educational and technical training infrastructure development which includes initiatives that boost women's participation in technical and professional fields," Arnab added.

02 Feb 2026, 2:08 PM (IST)

Budget 2026 Reactions: Gold correction looks like consolidation, not reversal: Apurva Sheth, SAMCO Securities

Samco Securities, Apurva Sheth said that gold has witnessed sharp volatility in recent weeks, with narratives quickly emerging to explain the pullback. One camp attributes the move to the appointment of a hawkish new Fed Chair, reviving fears of tighter monetary conditions for longer. Another line of commentary points to profit booking after a strong multi month rally. These explanations may sound convincing, but markets ultimately respond to price, not stories from a price action perspective, the larger trend in gold remains clearly intact.

"The long term structure continues to show higher highs and higher lows, and the recent decline looks more like a pause within an ongoing uptrend rather than the start of a reversal. Importantly, prior breakout zones are holding, suggesting that strong hands are still willing to accumulate on dips," she added.

02 Feb 2026, 1:58 PM (IST)

Budget 2026 Reactions: Ranjita Raman, CEO, Jaro Education, on Budget’s push for future-ready workforce

Commenting on the Budget 2026, Ranjita Raman, CEO of Jaro Education stated that this Budget makes a strong and timely push towards building a workforce that is ready for the future and aligned with India’s Viksit Bharat 2047 goals. By placing skill development and industry-linked education at the core of its agenda, the government has clearly acknowledged the need to bridge the gap between learning and employability. The proposal to develop university townships near industrial corridors and to set up an Education to Employment and Enterprise Standing Committee reflects a practical, outcome-focused approach, especially for strengthening the services sector.

02 Feb 2026, 1:14 PM (IST)

Budget 2026 Reactions: KPMG sees focus on simplified compliance, voluntary disclosures and tax certainty

KPMG's Parizad Sirwalla believes the Budget 2026 is a continuity-focused budget that prioritises tax stability, compliance reforms and ease of doing business, including measures to simplify procedures, encourage voluntary disclosures, and build a trust-based framework, rather than cutting rates.

"Budget 2026 emphasizes a compliance‑friendly, trust‑enhancing tax framework over rate cuts. Few highlights being decriminalizing minor offences, enhancing voluntary disclosures, extension of revised return deadlines, TCS / TDS rationalization, encouraging deeper market participation by PROI. Revamp of buyback‑tax framework and the rise in STT on futures and options will influence investor behavior," Sirwalla said.

02 Feb 2026, 1:03 PM (IST)

Budget 2026 Reactions: Arihant Capital flags STT hike impact, sees near-term market jitters

Arihant Capital's Anita Gandhi believes that Budget 2026-27 will support long-term economic growth through fiscal discipline and structural reforms. However, she is disappointed by the increase in STT, as it will hurt sentiment among short-term traders and create volatility in the near future.

"The increase in STT rates on futures and options has particularly impacted short-term traders, who were hoping for some relief or stability on the taxation front. This has led to near-term nervousness and profit booking in the markets, which is reflected in the current negative sentiment," she said.

02 Feb 2026, 12:02 PM (IST)

Budget 2026 Reactions: Bharti Enterprises sees Budget strengthening domestic capabilities, digital economy

Bharti Enterprises' Founder & Chairman praised the Budget 2026 for balancing growth with inclusion by investing in skilling, innovation, infrastructure and the digital ecosystem.

"Bolstering infrastructure and logistics, with a focus on energy efficiency and impetus for the data centre ecosystem, will further reinforce confidence in our burgeoning digital economy," Sunil Bharti Mittal added.

02 Feb 2026, 11:17 AM (IST)

Budget 2026 Reactions: SpiceJet chairman sees shift toward long-term capacity-building

Budget 2026 reflects a clear shift from short-term incentives to long-term capacity building, the SpiceJet chairman said. He said the focus on structural reforms, diversified supply chains and future-ready investments shows a recognition that volatile times require foresight, not fiscal populism.

"The 9% rise in public capital expenditure provides a much-needed growth anchor, while the government’s adherence to a fiscal glide path – with the deficit brought down to 4.3% of GDP – reinforces credibility and discipline. Together, these measures signal a budget that is pragmatic, resilient and geared for sustainable growth," Ajay Singh added.

01 Feb 2026, 9:31 PM (IST)

Budget 2026 Reactions: BenQ India hails Rs 40,000 crore boost for ISM 2.0 and domestic electronics

BenQ India's Rajeev Singh said the Rs 40,000 crore allocated under ISM 2.0 will strengthen India's domestic semiconductor ecosystem, promote industry-led innovation, and develop skilled talent for advanced electronics and digital infrastructure.

"The enhanced allocation of Rs 40,000 crore under the India Semiconductor Mission 2.0 is a strong step towards building a resilient domestic electronics ecosystem," Rajeev Singh, Managing Director, BenQ India & South Asia, said.

"The focus on industry-led research and capacity building will support long-term innovation and skilled talent development. It will be important to see how these initiatives progress in the coming days, and we remain committed to supporting the ecosystem as it evolves," he said.

01 Feb 2026, 8:36 PM (IST)

Budget 2026 Reactions: itel India sees electronics manufacturing push

Commenting on the Budget 2026, itel India CEO Arijeet Talapatra said the Union Budget strengthens the country’s electronics manufacturing ecosystem through higher PLI support, ISM 2.0, and localisation, while an infrastructure push in Tier-2 and Tier-3 cities boosts consumer access and long-term growth.

"The announcement of the India Semiconductor Mission 2.0 is a welcome move that will bolster India’s journey towards becoming Atmanirbhar - critical for ensuring uninterrupted access to crucial technologies. The government’s focus on infrastructure development in Tier-2 and Tier-3 cities will further drive consumer-led growth by improving access, distribution efficiency, and last-mile connectivity," CEO Talapatra said.

01 Feb 2026, 8:22 PM (IST)

Budget 2026 Reactions: Audi India sees infra push and ISM 2.0 strengthening auto, EV ecosystem

Audi India's brand director says the budget's emphasis on infrastructure, capital expenditure, and supply chain strengthening—with the support of fiscal stability and semiconductor initiatives—strengthens India's mobility ecosystem. This will boost long-term confidence in automotive and electric vehicle investments, including in the luxury segment.

"The Union Budget’s strong emphasis on infrastructure and capital expenditure is a positive enabler for India’s mobility landscape. Improved highways and intercity connectivity, especially across Tier-II and Tier-III markets, are strengthening the ownership and usage ecosystem for luxury automobiles," said Balbir Singh Dhillon, Brand Director, Audi India.

"Initiatives like the development of rare earth corridors and the advancement of ISM 2.0 under the India Semiconductor Mission are timely and critical. They signal a clear intent to build resilient domestic supply chains and a technology-driven manufacturing ecosystem that will support the future of automotive and electric mobility in India," he added.

01 Feb 2026, 7:00 PM (IST)

Budget 2026 Reactions: Tata Motors sees growth push, capex boost and EV focus driving Viksit Bharat

Commenting on the Union Budget, Tata Motors said that the Budget builds on the momentum of reforms in recent years, strengthens India's resilience and advances the nation's journey towards the vision of a developed India.

"The Union Budget 2026 is an inclusive, growth‑oriented and forward‑looking roadmap designed to accelerate sustainable economic expansion with fiscal prudence. The proposal to raise public capex to Rs 12.2 lakh crore strengthens the foundation for long‑term growth and aligns strongly with the nation’s evolving priorities. Targeted initiatives for data centres, semiconductors, rare earths and electronic components will reduce critical import dependencies and position India as a global high‑tech manufacturing hub. The higher Auto PLI allocation for FY27, customs duty exemptions on capital goods for lithium‑ion cell manufacturing, and increased outlay under the PM e‑Drive scheme reflect the government’s continued commitment to catalysing the EV ecosystem. Overall, the Budget builds on the reform momentum of recent years, reinforcing India’s resilience and advancing the nation’s journey toward the Viksit Bharat vision," said Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles Ltd.