Budget 2026 focuses on execution and targeted spending, say FICCI leaders

Industry leaders reading Budget 2026 say its real shift is not in headline announcements, but in an execution-led, micro-targeted deployment of capital across sectors and regions — with clearly defined outcomes rather than broad policy signalling.

That theme came through most clearly in how the Budget links infrastructure, manufacturing and services to city-specific hubs, sector-specific schemes and challenge-based funding.

As Puneet Dalmia, Vice President, Federation of Indian Chambers of Commerce and Industry (FICCI) and Managing Director of Dalmia Bharat Group, said, “India is building massive physical infrastructure and digital infrastructure”, and this is intended to lift productivity, reduce logistics costs and make the economy globally more competitive through carefully planned connectivity and hub creation.

For the industry, this sharper execution focus is being built on a stable policy and reform framework. Anant Goenka, President, FICCI and Vice Chairman of RPG Group, said the budget reinforces growth, inclusivity and youth through continuity in reforms and a sustained infrastructure thrust, while maintaining a balance between future-ready industries and labour-intensive sectors such as textiles, leather and apparel.

At the core of this approach is the way capital is now being deployed with micro-level planning. Dalmia said allocations are being done thoughtfully — identifying which cities should be connected, where logistics and industrial hubs should be created and how regional strengths can be leveraged — while challenge-based funding for sectors such as health, education and tourism is being used to unlock efficiencies at the state level.

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The credibility of this execution-heavy strategy, industry leaders believe, is also being strengthened by improving public finances. Harsh Pati Singhania, Chairman and Managing Director of JK Paper and former FICCI President, said the steady decline in the debt-to-GDP ratio and strong growth numbers are creating rare certainty among large global economies and giving the government vital fiscal space to support growth.

Beyond domestic execution, attracting foreign capital is another operational priority embedded in the Budget. Singhania pointed to the focus on drawing overseas investment into data centres and digital infrastructure, as well as capital from people of Indian origin living abroad, as an important step at a time when global capital flows remain volatile.

Execution and delivery were also highlighted as the real test for near-term outcomes. Subhrakant Panda, Managing Director of Indian Metals & Ferro Alloys and former FICCI President, said that while announcements are important, “focus has to be on execution”, adding that the government’s track record of follow-through in previous Budgets provides confidence. He also said the emphasis on ease of living and targeted support for MSMEs is critical because MSMEs remain the real engines of job creation.

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At a sectoral level, the Budget’s micro-levers are clearly visible in electronics and advanced manufacturing. Goenka said the sharp increase in the outlay for the electronic component manufacturing scheme and the continuation of the semiconductor mission underline sustained operational focus on building a globally competitive electronics ecosystem.

Industry also welcomed the absence of disruptive policy changes. Sandip Somany, Chairman and Managing Director of Somany Impresa Group and former FICCI President, said the finance minister has stayed committed to a clearly articulated roadmap and improved it year after year, which allows companies to plan investments with confidence. He summed up the broader macro comfort for industry by calling India “an island of paradise in a very turbulent world.”

Rashesh Shah, former FICCI President, said the extension of GIFT City’s tax holiday to 20 years and the increase in investment limits reinforce the international financial hub’s role as a key gateway for both inbound and outbound capital flows.

He said the Budget’s broader approach—focused on multiple small but meaningful reforms—was positive for capital markets. Shah was particularly encouraged by measures aimed at strengthening the bond market, including state and municipal bonds, which can help smoothen credit flow alongside equities.

“The entire credit flow in the economy needs to be smoothened out,” Shah said, highlighting the need for deeper debt markets to support growth.

Cyril Shroff, Chair of the FICCI Corporate Laws Committee, said the Budget should be viewed as part of an ongoing reform journey rather than a one-off event. According to him, the focus on infrastructure, defence, financial services and technology-linked areas such as data centres adds depth to India’s growth story and improves the country’s appeal for foreign investors.

He also cautioned against reading too much into short-term market reactions, noting that structural reforms take time to be fully

understood and priced in.

From the perspective of the non-banking financial sector, Nirmal Jain, Chair of the FICCI NBFC Committee, said the government’s intent to build a world-class financial system was clear.

He pointed out that Indian banks are currently among the strongest globally in terms of asset quality, while NBFCs play a critical role in reaching under-banked regions and specialised borrower segments. The recognition of NBFCs as complementary to banks, along with the push for co-lending, is expected to improve credit delivery across the economy.

According to Jain, policymakers now clearly see banks and NBFCs as joint drivers of the Viksit Bharat vision.

Catch the latest Budget 2026 updates here