Union Budget 2026 LIVE: Top Industry Reactions & Expert Takeaways

[05:20 PM IST] – Digital Infrastructure: "A 21-Year Tax Runway for India’s Cloud Ambition"

Mrs. Veena Khandke (SVP & Managing Director, Ensono India) on Cloud, AI & Data Centers:

• Tax Certainty 2.0: Expanding the Safe Harbor threshold to ₹2,000 crore and fast-tracking Advance Pricing Agreements (APAs) to just two years drastically reduces litigation, making India a magnet for global tech innovation.

   

• The 2047 Vision: The tax holiday until 2047 for cloud providers using Indian data centers is a "game-changer." It turns India into a global "Safe Haven" for data residency and hyperscale infrastructure.

• Talent as Currency: By focusing on Quantum Computing and STEM for women, the budget is moving beyond basic coding skills toward high-end specialized expertise.

• The Verdict: This budget isn't just supporting IT—it’s positioning the sector to capture 10% of the global IT services market share by the centenary of India's independence.

[04:50 PM IST] – SME Banking: "Modernizing Legacy Clusters for Global Competition"

Mr. Shyam Mani (Head-SME, CSB Bank) on Manufacturing & Resilience:

• CAPEX Multiplier: The ₹12.2 lakh crore infrastructure target will create a massive trickle-down effect, providing sustained orders for MSMEs in the manufacturing value chain.

• Cluster Revival: The plan to modernize 200 legacy industrial clusters is a "proactive" move to ensure traditional manufacturing hubs don't get left behind in the tech revolution.

• Risk Capital Flow: A ₹2,000 crore top-up to the Self-Reliant India (SRI) Fund ensures that even the smallest Micro-enterprises have access to risk-taking capital.

• The Verdict: By combining high-tech thrusts (Semiconductors) with traditional cluster support, the budget builds a "resilient and future-ready" MSME ecosystem.

[04:35 PM IST] – Banking Perspective: "Moving from Collateral to Cash-Flow Lending"

Mr. Madhur Kumar (CGM – MSME Banking, Bank of Baroda) on MSME Credit & Risk:

• TReDS Deepening: Mandatory CPSE payments through TReDS provide banks with "cash-flow visibility," allowing for safer, receivable-backed lending.

• The Equity Gap: The ₹10,000 crore SME Growth Fund ensures MSMEs are better capitalized. From a bank's view, better equity means lower credit risk and stronger repayment capacity.

• Data-Led Underwriting: Integration across GeM, GST, and TReDS allows banks to sharpen their "early-warning mechanisms" and price loans more accurately based on real-time data.

• The Verdict: The Budget moves MSME banking away from volume-driven targets toward risk-calibrated, digitally enabled financing.

[04:15 PM IST] – Talent & Services: "Bridging the Education-to-Enterprise Gap"

Mr. Thyagu Valliappa (Founder, SCALE & Vice Chairman, Sona Valliappa Group) on Skill Economy & SEZs:

• Education to Enterprise: The new Standing Committee is a vital link to align AI and emerging tech skills with industry demand, ensuring the workforce is "future-ready" rather than just "educated."

• GCC & SEZ Stability: Renewed SEZ incentives and Safe Harbour provisions provide the fiscal predictability required to attract long-term investment into Global Capability Centers.

• New Growth Engines: Beyond IT, the focus on AYUSH (as an export hub), Seaplane manufacturing (tourism boost), and Marine sectors signals a diversified approach to job creation.

• The Verdict: While it lacks "big bang" surprises, the Budget provides a stable, solutions-oriented roadmap for India to become a global services powerhouse by 2047.

[03:35 PM IST] – MSME Lending: "A Structural Re-engineering of Credit Delivery"

Mr. Shachindra Nath (Founder & MD, UGRO Capital) on MSME Financing:

• Bridging Financing Gaps: The ₹10,000 crore SME Growth Fund and the ₹2,000 crore SRI Fund top-up provide the necessary equity and debt cushion for small enterprises.

• Solving Late Payments: Mandatory routing of CPSE payments through TReDS and the integration of GeM with TReDS will drastically improve cash flow for MSMEs.

• Liquidity & Risk: The introduction of securitization for TReDS receivables and a dedicated credit guarantee for invoice discounting will allow NBFCs to lend more confidently.

• The Verdict: By leveraging technology (TReDS) and de-risking mechanisms, the Budget has transformed MSME credit from a challenge into a sustainable growth engine.

[03:30 PM IST] – Cement & Climate: "A Decisive Shift to System Resilience"

Mr. Arun Shukla (JK Lakshmi Cement) & Mr. Sambitosh Mohapatra (PwC India):

• Urban Hubs: Focusing on cities with 5L+ population (Tier-2 & 3) will create new demand centers for construction.

• Decarbonization: The ₹20,000 Cr CCUS Mission and SMR Nuclear Mission are the new frontiers for clean industrial growth.

• Fiscal Power: Restructuring PFC and REC will unlock deep capital pools to fuel the ₹12.2L Cr capex cycle.

[02:45 PM IST] – Public Sector (SCOPE): "PSEs to Drive Hi-Tech Innovation"

Standing Conference of Public Enterprises (SCOPE):

• New Mandate: Public Sector Enterprises (PSEs) are now the primary drivers for AI, Carbon Capture, and Rare Earth mining.

• Inclusivity: Focus on hi-tech devices for Divyangjan and tool rooms merges social responsibility with technical growth.

[02:25 PM IST] – Consumer Tech: "Doubling Down on the Component Ecosystem"

Mr. Rajeev Singh (BenQ India) & Mr. Ravi Agarwal (Cellecor):

• Component Fund: Doubling the Electronics Component Scheme to ₹40,000 Cr strengthens the domestic supply chain.

• Edu-Employment: 15,000 "Content Creator Labs" and University Townships near industry corridors will bridge the skill gap.

[02:10 PM IST] – Agriculture (FAI): "Stability Amid Global Volatility"

Mr. S. Sankarasubramanian & Dr. Suresh Kumar Chaudhari (FAI):

• Massive Subsidy: ₹1.70 Lakh Cr allocation ensures input affordability for farmers.

• Structural Reform: Addressing inverted GST structures and rationalizing customs duty will improve the cash flow of fertilizer companies.

[01:40 PM IST] – Manufacturing (Moglix): "Logistics & Chips as the Backbone"

Mr. Rahul Garg (Moglix):

• Semiconductor 2.0: A ₹40,000 Cr outlay for full-stack chip design and materials.

• Logistics: The East-West Freight Corridor and ₹10,000 Cr container scheme will slash transit times and costs.

[01:10 PM IST] – Real Estate (G Square): "Connectivity-Led Urban Expansion"

Mr. Bala Ramajayam (G Square Group):

• Tier-II Attraction: Improved connectivity makes plotted developments in emerging corridors highly attractive for first-time buyers.

• Market Transparency: Unlocking assets through REITs and simplifying NRI transactions will boost "Ease of Doing Business."

[12:55 PM IST] – Infrastructure (Ramky): "Unlocking Dormant Capital"

Mr. Sunil Nair (Ramky Infrastructure):

• Asset Monetization: Dedicated REITs for CPSE-owned real estate will unlock liquidity in the system.

• Pharma Push: The ₹10,000 Cr Biopharma Shakti scheme provides plug-and-play clusters for innovation.

[12:35 PM IST] – Automotive (Renault): "Sustainable Mobility & Localization"

Mr. Stéphane Deblaise (Renault Group India):

• EV Boost: Duty exemptions on Lithium-ion cells and rare earth magnets are critical for localizing the EV supply chain.

• Self-Reliance: Focus on Indian Intellectual Property (IP) in semiconductors reduces dependency on critical imports.

[12:20 PM IST] – Power (Genus): "Grid Resilience & Energy Transition"

Mr. Jitendra Kumar Agarwal (Genus Power):

• Battery Storage: Customs duty exemptions for BESS (Battery Energy Storage Systems) are vital for grid stability.

• Capex Continuity: The ₹12.2 Lakh Cr outlay ensures energy infrastructure keeps pace with industrial demand.