What is the story about?
Union Budget 2026, presented by Finance Minister Nirmala Sitharaman on February 1, has drawn a largely positive response from industry leaders, who see it as a continuation of the government’s medium-term economic strategy rather than a dramatic overhaul.
From manufacturing and skilling to infrastructure and green growth, business voices believe the Budget reflects fiscal discipline and a focus on execution — what CII President Designate and Tata Chemicals MD & CEO R. Mukundan termed a “build-forward Budget”, not a “big-bang Budget”.
Speaking to CNBC-TV18, Mukundan, along with CII President Rajiv Memani, Infravision Foundation’s Vinayak Chatterjee, and Siemens India MD & CEO Sunil Mathur, decoded the Budget’s key signals for the economy.
‘Continuity Budget’ With Strong Thrust on Ecosystem Building
CII President Rajiv Memani said Budget 2026 builds on themes of previous years, with a clear focus on manufacturing, SMEs, tourism, and labour-intensive sectors.
“I would say it is very much in continuation of the earlier Budget. You can see a very clear thrust on manufacturing, SMEs, tourism, and also a lot of labour-intensive sectors,” Memani noted.
What stood out this year, he said, was the emphasis on ecosystem-building rather than just headline announcements.
“In earlier budgets you saw a number, but this time around, a lot of it was about ecosystem-building and skilling,” he said, pointing to measures supporting electronics manufacturing, tax simplification in IT services, and incentives for data centres.
Fiscal Prudence Sends Global Signals
Siemens India MD & CEO Sunil Mathur underscored that the Budget stays firmly on the path of fiscal and economic prudence — a key marker for global confidence in India’s macro framework.
“To me, India has stayed on the course of fiscal and economic prudence. The fiscal deficit, the debt-to-GDP ratio — these are very important global signals in today’s world,” Mathur said.
He added that such discipline strengthens India’s standing as it competes for international investment amid global uncertainty.
‘Build-Forward Budget’ Amid External Challenges
Mukundan echoed the sentiment, highlighting that the Budget responds to external headwinds by deepening India’s integration with international markets.
“This budget must be a build-forward budget, not a big-bang budget. And it’s been a build-forward budget, especially focusing on external challenges,” he said.
He noted that the government has sought to boost exports and attract overseas investments, not just through free trade agreements but also through customs measures and procedural efficiency.
Green Growth Emerges as a Core Theme
Another area Mukundan flagged was the sharp focus on greening the economy, with multiple measures aligned to clean energy and sustainable products.
“If you look at the slew of measures announced, each one of them is towards bio-gas. When you talk about nuclear power, when you talk about solar panels, it is so focused on green products,” he said.
The emphasis, he suggested, reflects India’s push to build competitiveness in emerging green industries.
Skilling Linked to Jobs, Tourism and Future Sectors
Mathur also pointed to job creation as a standout element, with the Budget calling out specific sectors and tying skills development to employment opportunities.
“I see sectors being called out for job creation, and the way the focus on skills is connected to tourism… I found that to be good and innovative,” he said.
Mukundan added that Budget 2026 takes a more holistic approach by linking education, employment, and entrepreneurship for the first time.
“She is actually linking education, employment, and entrepreneurship… bringing a holistic approach to how we make this work,” he said.
Also Read | Budget 2026: FM Nirmala Sitharaman announces STT hikes of up to 150% on F&O trading
Execution Over Populism
Overall, the industry view suggests Budget 2026 is less about one-off announcements and more about strengthening the building blocks of long-term growth — manufacturing competitiveness, infrastructure execution, export integration, and green transition.
With fiscal prudence intact and policy continuity reinforced, business leaders believe the government has opted for stability and structured growth rather than headline-grabbing populism.
From manufacturing and skilling to infrastructure and green growth, business voices believe the Budget reflects fiscal discipline and a focus on execution — what CII President Designate and Tata Chemicals MD & CEO R. Mukundan termed a “build-forward Budget”, not a “big-bang Budget”.
Speaking to CNBC-TV18, Mukundan, along with CII President Rajiv Memani, Infravision Foundation’s Vinayak Chatterjee, and Siemens India MD & CEO Sunil Mathur, decoded the Budget’s key signals for the economy.
‘Continuity Budget’ With Strong Thrust on Ecosystem Building
CII President Rajiv Memani said Budget 2026 builds on themes of previous years, with a clear focus on manufacturing, SMEs, tourism, and labour-intensive sectors.
“I would say it is very much in continuation of the earlier Budget. You can see a very clear thrust on manufacturing, SMEs, tourism, and also a lot of labour-intensive sectors,” Memani noted.
What stood out this year, he said, was the emphasis on ecosystem-building rather than just headline announcements.
“In earlier budgets you saw a number, but this time around, a lot of it was about ecosystem-building and skilling,” he said, pointing to measures supporting electronics manufacturing, tax simplification in IT services, and incentives for data centres.
Fiscal Prudence Sends Global Signals
Siemens India MD & CEO Sunil Mathur underscored that the Budget stays firmly on the path of fiscal and economic prudence — a key marker for global confidence in India’s macro framework.
“To me, India has stayed on the course of fiscal and economic prudence. The fiscal deficit, the debt-to-GDP ratio — these are very important global signals in today’s world,” Mathur said.
He added that such discipline strengthens India’s standing as it competes for international investment amid global uncertainty.
‘Build-Forward Budget’ Amid External Challenges
Mukundan echoed the sentiment, highlighting that the Budget responds to external headwinds by deepening India’s integration with international markets.
“This budget must be a build-forward budget, not a big-bang budget. And it’s been a build-forward budget, especially focusing on external challenges,” he said.
He noted that the government has sought to boost exports and attract overseas investments, not just through free trade agreements but also through customs measures and procedural efficiency.
Green Growth Emerges as a Core Theme
Another area Mukundan flagged was the sharp focus on greening the economy, with multiple measures aligned to clean energy and sustainable products.
“If you look at the slew of measures announced, each one of them is towards bio-gas. When you talk about nuclear power, when you talk about solar panels, it is so focused on green products,” he said.
The emphasis, he suggested, reflects India’s push to build competitiveness in emerging green industries.
Skilling Linked to Jobs, Tourism and Future Sectors
Mathur also pointed to job creation as a standout element, with the Budget calling out specific sectors and tying skills development to employment opportunities.
“I see sectors being called out for job creation, and the way the focus on skills is connected to tourism… I found that to be good and innovative,” he said.
Mukundan added that Budget 2026 takes a more holistic approach by linking education, employment, and entrepreneurship for the first time.
“She is actually linking education, employment, and entrepreneurship… bringing a holistic approach to how we make this work,” he said.
Also Read | Budget 2026: FM Nirmala Sitharaman announces STT hikes of up to 150% on F&O trading
Execution Over Populism
Overall, the industry view suggests Budget 2026 is less about one-off announcements and more about strengthening the building blocks of long-term growth — manufacturing competitiveness, infrastructure execution, export integration, and green transition.
With fiscal prudence intact and policy continuity reinforced, business leaders believe the government has opted for stability and structured growth rather than headline-grabbing populism.
