Merchants’ Chamber of Commerce & Industry organised Symposium on Union Budget 2026–27 Analysis, Today at MCCI Conference Hall.
The Session was addressed by Prof. Parthapratim Pal, Professor, Economics, Indian Institute of Management Calcutta, Shri Sushil Kumar Goyal, Chairman, Council on GST, Indirect & State Taxes and Shri Sanjay Bhattacharya, Co-Chairman, Council on Direct Taxes, MCCI.
Prof. Parthapratim Pal, Professor, Economics, Indian Institute of Management Calcutta in his address said that in macroeconomics, fiscal policy is a short-term policy tool for stabilizing growth which generates employment and maintains price stability in the economy. In an economy which is facing moderate inflation and good growth rate, the role of fiscal policy as a stabilization tool could be limited.
He further mentioned that India’s economy is showing promising signs of growth, with the agricultural sector expected to grow by 3.1% in FY26. This growth is driven by a structural shift towards allied activities like livestock and fisheries, which are contributing significantly to value addition and outpacing crop output growth. The manufacturing sector is also experiencing a surge, with Gross Value Added (GVA) expanding by 9.13% in Q2 FY26. High-tech manufacturing is leading the charge, accounting for approximately 46.3% of total manufacturing value added. Mobile manufacturing has seen a remarkable 30-fold increase in production value since FY15. The Service sector remains the primary growth engine, expanding by 9.1% in FY26, driven by financial services, real estate, and professional services.
Prof Pal informed that The Union Budget 2026-27 focuses on steady growth with no major tax rate changes, but tweaks like reducing the Minimum Alternate Tax (MAT) to 14% and increasing Securities Transaction Tax (STT) to curb speculation. Infrastructure gets a boost with public capex at 3.1% of GDP and new initiatives like freight corridors and high-speed rails. The budget pushes manufacturing and industry forward with a ₹400bn electronics scheme, support for labor-intensive sectors, and a ₹100bn SME growth fund. It also targets growth in defense, data centers, and critical minerals, while restructuring banking and deepening the bond market.
He lastly highlighted that the impending mega trade deals present both opportunities and challenges for India. While lower tariff barriers can boost exports, non-tariff barriers may persist or even increase, limiting gains. To capitalize on these deals, India must focus on enhancing competitiveness, meeting stringent quality standards, and moving up the value chain. Technological preparedness will also be crucial. Meanwhile, the efficacy of the WTO system is under scrutiny, adding uncertainty to global trade dynamics. India’s ability to navigate these complexities will determine its success in leveraging these trade agreements.
Shri Sushil Kumar Goyal, Chairman, Council on GST, Indirect & State Taxes mentioned that in this Budget GST has formalised economy where the growth remains a concern. As indirect taxes increase, the inflation increases automatically.
He further pointed out that a 42.4% tax has been paid on imports. In December 2025, the domestic transaction cost was 1.2%, and the import tax was 19.7%.
He also spoke about 4 changes brought in CGST and 1 Change in IGST.
Shri Sanjay Bhattacharya, Co-Chairman, Council on Direct Taxes, MCCI discussed Finance Bill 2026. He touched upon Revised Return, Compliances Contribution in EPFO, Buyback of Shares, Reduction of Imprisonment and Compulsory Acquisition of Agricultural Land.
Shri Arvind Agrawal, Chairman, Council on Direct Taxes, MCCI in his Welcome Address said that the Government is estimated to spend around Rs. 53 lakh cr. in 2026-27, 7.7% higher than the revised estimate of 2025-26. The receipts (other than borrowings) in 2026-27 are estimated to be Rs 36 lakh crore, about 7.2% higher than the revised estimate of 2025-26. Tax revenue which forms major part of the receipts is also expected to increase by 8% over the revised estimate for 2025-26.
He further added that Revenue deficit in 2026-27 is targeted at 1.5% of GDP, similar to the revised estimate of 1.5% in 2025- 26. Fiscal deficit in 2026-27 is targeted at 4.3% of GDP, lower than the revised estimate of 4.4% of GDP in 2025-26. The declining debt-to-GDP ratio, estimated to be 55.6 % of GDP in BE 2026-27, compared to 56.1% of GDP in RE 2025-26, would gradually free up resources for priority sector expenditure by reducing the outgo on interest payments.
The Session concluded with hearty Vote of Thanks proposed by Shri Rajesh Sonthalia, Co-Chairman, Council on Sustainability & Environmental Resources Management.
