Industry Leaders Welcome Union Budget as Inclusive, Growth-Oriented and Strategically Balanced
Leading industry voices have lauded the Union Budget as an inclusive, forward-looking and strategically crafted roadmap that balances fiscal prudence with growth, innovation and long-term national capacity building.
Mr. Parthiv Neotia, Sr. Vice President, ICC & Executive Director, Ambuja Neotia Holdings described this year’s Budget as “very inclusive” and one of the most interesting in recent years. He highlighted the government’s focus on emerging and high-growth sectors such as fisheries, semiconductors, artificial intelligence, the creative economy, hospitality and tourism, calling them key pillars of India’s new economic landscape.
He further welcomed the strong push in bio-pharma, innovation and manufacturing, especially in light of India’s growing burden of non-communicable diseases (NCDs). “It is encouraging to see substantial investment and focus in healthcare,” he noted, pointing to the development of five regional medical tourism hubs as a major step in positioning India as a critical healthcare destination, not only for Indians but also for neighbouring countries seeking affordable, quality treatment.
Mr. Neotia emphasised the government’s sustained efforts to reduce India’s high logistics costs through infrastructure development, including new highways and the announcement of 20 waterways, which will help make products more affordable domestically and more competitive globally. He also underlined the role of the tax regime, tax incentives, tax holidays and policy measures in reviving foreign investment, noting that the Budget must be viewed alongside recent reforms such as GST 2.0, the India–EU trade agreement, FTAs and ongoing trade negotiations with the US.
For the common citizen, he said the strong focus on MSMEs stands out. “MSMEs are the backbone of Indian industry, employing lakhs of companies and crores of people. The equity infusion scheme for MSMEs will boost the middle layer of employment and economic development. Higher consumption and investment at this level will significantly strengthen the national economy,” he added, stating that the Budget is largely designed to support MSMEs, new industries and foreign investment.
Mr. Keshav Bhajanka, Vice President ICC & Executive Director Century Plyboards (I) Ltd acknowledged the challenging global and domestic environment, including economic pressures and the impact of US tariffs on several sectors. He praised the government’s fiscal discipline, particularly the 4.3% fiscal deficit target, and the ₹12 lakh crore plus infrastructure investment. He noted that sectors such as pharma, handicrafts, textiles and MSMEs, which have been under pressure, have received support. “While there may be nothing dramatic, this is a good, steady budget in the right direction, especially considering the pressures the government is managing,” he said.
Mr. Harish Agarwal, Partner, Ernst & Young LLP, pointed to the continued emphasis on fiscal conservatism and deficit reduction as a strong positive signal. He also welcomed the extension of safe harbour provisions for IT companies, which are facing pressure from AI-led disruption and H1B-related challenges in key markets such as the US. He observed that the Budget remains infrastructure-oriented, with focus areas including tourism, healthcare and freight, and noted the specific focus on the eastern region as particularly encouraging.
Mr. Atanu Sen, Former Senior Advisor, Deloitte Touche Tohmatsu India LLP, commented on the financial sector, noting that while the Budget refers to a healthy and vibrant banking sector and the formation of a committee on banking, relatively limited direct measures were announced for banking, insurance and pensions. He highlighted current challenges on the deposit (liability) side for banks and the need for a level playing field in taxation compared to other financial instruments. He added that banks are increasingly raising funds through instruments such as CDs and bonds due to deposit constraints, which partly explains stock market reactions.
On a positive note, Mr. Sen welcomed references to the development of corporate bond markets, including indices for corporate and municipal bonds, calling this a constructive step. He also emphasized that achieving universal insurance coverage by 2047 and strengthening the pension ecosystem remain important long-term priorities.
Dr. Rajeev Singh, Director General, ICC, on behalf of ICC, congratulated the Honourable Finance Minister for presenting a “very strategic” Budget. He said it lays out both short-term and long-term plans, with the long-term vision focused on building national and industrial capacity for self-reliance (Aatmanirbhar Bharat).
In the short term, he highlighted measures aimed at improving access to finance and equity, risk coverage, ease of doing business, simplification of regulations, decriminalisation of laws, and a more user-friendly customs regime. The Budget’s focus on reducing import dependence in key sectors, strengthening skills, agriculture, AI technology and infrastructure, and maintaining fiscal deficit targets, he said, creates a predictable and dependable environment for investors.
“I would describe this as a very balanced and strategically thought-out Budget that supports both immediate economic needs and long-term nation building,” Dr. Singh concluded.
