Union Budget 2026-27 : MCCI’s Reaction
Merchants’ Chamber of Commerce & Industry (MCCI) has complimented Smt. Nirmala Sitharaman, Hon’ble Union Finance Minister on her 9th consecutive Budget placed in the Parliament today, 1 February, 2026, for presenting an extremely pragmatic, holistic & forward–looking budget. Focusing on the boost towards industrialization and infrastructure growth, like rail, road, and freight corridors the Budget is expected to provide significant fillip to the national economy, industry and all sections of people.
In line with the Vision of Viksit Bharat by 2047, the Union Budget 2026-27 is built on three core pillars (Kartavyas) that reflect the Government’s vision for a balanced and inclusive growth trajectory. By focusing on accelerating economic growth, fulfilling citizens’ aspirations, and driving inclusive development, the Government aims to create a more equitable and prosperous society. The Government’s decision to increase capital expenditure (capex) to Rs.12.2 lakh crore from Rs. 11.2 lakh crore in the current fiscal, is expected to give a significant push to the economy, creating jobs and improving connectivity. The plan includes development of seven new high-speed rail corridors, which would enhance connectivity between major cities and strengthen linkages with Tier-2 and Tier-3 cities. This will not only boost economic activity but also promote balanced regional development.
MCCI lauds the proposal to introduce Rs 10,000 crore SME Growth Fund to strengthen MSMEs, to scale up, meet productivity criteria, formalise operations, and create & expand new markets. Also, to revive 200 legacy industrial clusters and top up the Self‑Reliant India Fund by ₹2,000cr to support micro enterprises. The proposal for mandatory use of the Trade Receivables Discounting System (TReDS) by central public sector enterprises for procurement from MSMEs and a fresh capital infusion into the Self Reliance India Fund would give the much-required boost.
The Mahatma Gandhi Gram Swaraj Initiative would give a significant boost to the khadi, handloom, and handicraft sectors. The government will restructure Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). A provision of Rs. 100 crore has been announced to support single bond issuances above Rs. 1,000 crore.
The Chamber has also felt that the Government’s initiative towards simplification and rationalisation of tax structure and redressal of tax disputes would enhance Ease of Doing Business and free up resources from both the Industry & the Govt. sector, which would in the long run, optimise the cost of manufacturing and speed up business.
