Industry leaders across electric mobility, real estate, financial services, and MSME sectors view Union Budget 2026–27 as a transformative policy framework that addresses critical sectoral challenges while building long-term economic resilience. With record infrastructure capital expenditure of ₹12.2 lakh crore, targeted support for MSMEs through the ₹10,000 crore SME Growth Fund, strategic initiatives for semiconductor and rare earth manufacturing, and measures to strengthen liquidity and credit access, the Budget is being widely seen as a balanced approach that combines fiscal discipline with growth-oriented reforms. While some segments express concerns over missed opportunities in affordable housing, the overall sentiment reflects optimism around supply-chain strengthening, institutional financing, and technology-led transformation across key sectors.

Alakshendra Singh, Head of corporate communication, Eros Group stated, "Union Budget 2026 is a missed opportunity for housing, especially affordable housing. While the government speaks the language of infrastructure and long-term growth, it has chosen to ignore a segment that is critical to urban stability and social inclusion. Affordable housing demand has been weakening for years, and the absence of any direct fiscal support, definition reset, or buyer-side stimulus is a clear setback. That said, the Budget is not without contradictions. On one hand, it talks about inclusive urban growth; on the other, it sidelines the very segment that enables it. The push on Tier-II and Tier-III cities and asset monetization through REITs may support institutional real estate and commercial assets, but housing cannot be left to infrastructure trickle-down alone. Real estate needs decisive policy support, not just macro assurances. This Budget plays safe, perhaps too safe, for a sector that needed sharper intervention."

Madhumita Agrawal, Founder & CEO, Oben Electric said, "The Union Budget's focus on expanding the Rare Earth Permanent Magnet Scheme and building dedicated rare earth corridors is a positive step towards reducing import dependence for critical materials used in EV manufacturing. Rare earth magnets, which are key components in electric motors, benefit directly from this initiative, and strengthening capabilities across mining, processing and advanced manufacturing will create a more reliable domestic supply base. The India Semiconductor Mission 2.0 and the Electronics Components Manufacturing Scheme will help build domestic capabilities in semiconductors and other electronic components, strengthening the supply chain for critical EV systems and reducing dependence on imports. As electric motorcycle manufacturing scales in India, such measures are particularly relevant for manufacturers with end-to-end, in-house development and manufacturing capabilities, supporting localization and long-term supply stability."

Kunal Arya, Co-founder & MD at Zelio E Mobility noted, "India's electric two-wheeler segment has gained strong momentum, and the Union Budget 2026–27 takes a step toward scaling it into a full industrial ecosystem. Focusing on rare earth magnets and dedicated corridors in mineral-rich states is crucial to secure the materials that power electric drivetrains. Reducing customs duty on capital goods for lithium-ion batteries will help lower costs and support local manufacturing. India Semiconductor Mission 2.0 and the enhanced Electronics Component Manufacturing Scheme will strengthen supply chains, promote full-stack Indian IP, and accelerate battery and component localization. This is pleasing to see how the government focuses on MSMEs—through credit guarantee support of ₹10,000-crore SME Growth Fund, it will further empower companies like ours to expand capacity, innovate faster, and compete globally. For Zelio, these measures provide a clear and stable pathway to scale Make in India electric two-wheelers that are affordable, reliable, and designed for mass adoption across Tier II, Tier III, and emerging markets. As the ecosystem matures, further momentum can be unlocked through targeted PLI support for battery cells and motor controllers, along with rationalisation of GST on electric two-wheelers to enhance affordability and widen consumer access."

Sameer Moidin, Founder & CEO of EVeium Smart Mobility stated, "Electric two-wheelers today need far more semiconductor and electronic content than ICE vehicles, but the sector is still largely dependent on imports for chips and key components. Steps like the India Semiconductor Mission 2.0 and the enhanced ₹40,000 crore outlay for electronics component manufacturing are encouraging and move us in the right direction. The government's focus on rare earth permanent magnets and dedicated corridors in mineral-rich states, alongside the creation of high-tech tool rooms and chemical parks, will strengthen domestic mining, processing, and component manufacturing while reducing import dependence. The reduction of basic customs duty on capital goods for lithium-ion batteries is another significant measure that can lower production costs and support local manufacturing at scale. That said, the inverted GST structure remains a real challenge, with inputs taxed higher than finished EVs. Fixing this imbalance will be critical to truly strengthen India's EV manufacturing ecosystem and make electric two-wheelers more affordable and scalable for mass adoption."

Jyoti Prakash Gadia, Managing Director, Resurgent India Limited said, "The decision taken by the Union Government in order to raise public capital expenditure to ₹12.2 lakh crore indicates a strong and reassuring signal of the policy continuity at a particular time when private investors are looking for stability and predictability as well. Sustained public capex has been the backbone of India's infrastructure revival, and this step will further increase the confidence across the developers, lenders, and long-term investors as well. The proposed Infrastructure Risk Guarantee Fund is a very significant intervention made by the government. By offering prudentially calibrated partial credit guarantees during the construction phase, the government is directly addressing one of the most critical challenge periods in the development of infrastructure. This will meaningfully improve bankability, reduce the cost of financing, and accelerate the private capital participation, mainly in large urban, transport, and logistics projects. The clear emphasis on tier 2 and tier 3 cities, city economic regions, and temple towns indicates a mature understanding of India's next growth cycle.”

According to him, financing urban infrastructure beyond the metros will also create new investment corridors, support regional economic clusters, and enable a more balanced, inclusive growth. In the Union Budget 2026-27, capital market reforms are also announced, such as market making in corporate bonds, total return swaps, and incentives for larger municipal bond issuances—these are long-awaited measures. This will also help to deepen the Indian debt market and gradually reduce overreliance on bank financing for both infrastructure and urban development. Overall Budget 2026-27 marks a decisive shift towards execution-led, risk-aware financing. By integrating the capital support with risk mitigation and market depth, it also strengthens the long-term investment attractiveness and lays the foundation for sustainable growth.

Also Read: Post Budget Reactions: Credit, Infrastructure & Real Estate Outlook

Ajay Menon, MD & CEO – Wealth Management, Motilal Oswal Financial Services noted, "Indian equities ended sharply lower as the Finance Minister proposed an increase in the STT on F&O transactions in the Union Budget 2026. Higher STT directly impacts the trading profitability for active participants and raises concerns around liquidity and volume growth. This triggered a strong selling pressure in Capital Market stocks including brokerages and exchanges. Benchmark Nifty50 plunged 593 points to close at 24,825 (-2.3%). The broader market also reacted negatively, with Nifty Midcap100 and Smallcap100 declining 2.2% and 2.7% respectively.”

He added, “On the sectoral front, Data Centre and AI-linked stocks gained as the Budget proposed a tax holiday till 2047 for foreign companies providing cloud services globally from data centers based in India. In contrast, shares of defense companies fell sharply, as the government's capex plans for the sector failed to meet market expectations. Pharma and healthcare stocks reacted positively, driven by measures such as launch of Biopharma Shakti (₹10,000 crore outlay over five years) to build a global biologics and biosimilar hub, along with over 1,000 accredited clinical trial sites to accelerate drug approvals and boost R&D activity.”

“Additionally, plans to develop five medical value tourism hubs in partnership with private hospitals are supportive for leading hospital chains. Capital expenditure was raised to a record ~₹12.2 lakh crore to drive infrastructure development and job creation. India's FY27 real GDP growth was projected at 6.8–7.2% (vs 6.3-6.8% in FY26), while the fiscal deficit was pegged at ~4.3% of GDP, keeping debt-to-GDP on a declining path ( at 55.6% in FY27). Overall, the Budget prioritized productivity-led growth with fiscal discipline, infrastructure expansion, supply-side reforms, and strategic sector support amid global uncertainties, focusing on long-term investment over short-term relief. Going ahead, we expect the market to remain subdued in the near term amid weak investor sentiments, though attention is likely to shift from headline announcements to the Budget's fine print. This, along with the upcoming earning announcements and global market cues would lay a key role in shaping market direction”, Ajay Menon noted.

Sai Pramodh, VP - Investments, BlackSoil said, "This year's Budget gets the MSME playbook right by moving beyond short-term relief to structural reform. The ₹10,000 crore SME Growth Fund, ₹2,000 crore top-up to the Self-Reliant India Fund, along with enhanced credit and equity support through systemic reforms such as TReDS and CGTMSE linkages, directly strengthen MSME working capital. For MSME-focused NBFCs like BlackSoil, it enables responsible credit expansion, and reinforces India's commitment to building globally competitive, job-creating and innovation-led small enterprises."

Ravinder Singh, MD, SVC Bank stated, "The Union Budget 2026 underscores the continued policy focus on MSMEs as an important driver of economic activity, supported by public investment and measures aimed at improving access to formal finance. The emphasis on strengthening receivable-based financing mechanisms, including facilitation through platforms such as TReDS, is a constructive step towards easing working capital pressures and improving cash-flow visibility for small enterprises. For cooperative banks, which are closely integrated with local MSME ecosystems, these policy signals provide scope to further develop working capital and receivable-based solutions in alignment with applicable regulatory frameworks and prudent risk management practices. Improved cash-flow predictability for MSMEs can contribute to better credit behavior and more resilient balance sheets over time. The continued focus on women-led enterprises and grassroots financial inclusion is consistent with the cooperative banking ethos. As MSME activity stabilizes and expands, cooperative banks can play a supportive role in fostering inclusive local economic development while maintaining sound asset quality and deposit-led growth."

Ashok Mittal, MD & CEO, BillMart Fintech noted, "Overall, this is a good and balanced Budget, with a clear focus on strengthening the MSME sector, which contributes nearly 30% to India's GDP. The announcement of a dedicated ₹10,000-crore fund for MSMEs is a strong step and will support faster growth for small and medium enterprises. The measures proposed to strengthen the Trade Receivables Discounting System (TReDS) are equally encouraging, as they address long payment cycles that often stretch to 60–90 days for MSMEs. Mandating TReDS for CPSE purchases, linking GeM with TReDS, and introducing credit guarantees for invoice discounting will help improve cash-flow visibility and ease working-capital pressure. Together, these initiatives will give MSME entrepreneurs greater confidence to focus on scaling their businesses."

Mangesh Chauhan, Managing Director, Sky Gold & Diamonds said, "The union Budget 2026 reinforces economic stability and long term growth, creating a positive environment for the jewelry industry that is driven by consumer trust and aspirations. Its focus on fiscal discipline, employment generation and ease of doing business will strengthen domestic demand and support the organized sector. For manufacturers like sky gold and diamonds, this direction encourages innovation, expansion and technology adoption, enabling India to further strengthen its position as a global jewelry hub. We remain committed to delivering superior craftsmanship, transparency and value while contributing to the growth of the industry and the nation."

Overall, Union Budget 2026–27 has elicited a broadly positive response from industry leaders, who view it as a forward-looking, execution-driven framework aimed at strengthening India’s economic foundations. With its emphasis on infrastructure-led growth, MSME financing, supply-chain localization, and technology-enabled sectors, the Budget signals continuity, stability, and long-term intent. While concerns remain around sector-specific gaps—particularly in affordable housing, GST rationalization, and near-term market sentiment—the consensus reflects cautious optimism that sustained public investment, deeper capital markets, and targeted reforms will help unlock private capital, boost competitiveness, and support inclusive, resilient growth across the economy.