Industry leader, Baba Kalyani, has welcomed the Union Budget 2026, highlighting its emphasis on stability, long-term capability building and investment-led growth amid global economic and geopolitical uncertainty.
Commenting on the Budget, Baba Kalyani, CMD, Bharat Forge Ltd., said, “The Union Budget 2026 reflects the hallmark of Prime Minister Modi’s stable, strong and visionary leadership, anchored in policy continuity, fiscal discipline and a clear focus on building long-term national capabilities. I congratulate the Hon’ble Finance Minister on her ninth successive Budget, which strikes a careful balance between macroeconomic stability and sustained investment-led growth. The articulation of a multi-pronged growth framework and the three kartavyas reinforces the commitment to building a competitive, inclusive and future-ready economy.
At a time of heightened geopolitical and supply-chain uncertainty, these measures are bound to strengthen India’s economic resilience and global positioning, sending a strong signal to both Global and Indian investors.
Through this budget, the government’s bet on Manufacturing is reinforced; special emphasis on modern infrastructure, high-speed rail corridors, healthcare and cities as engines of growth, is timely and strategic. The progression of the semiconductor programme to ISM 2.0 through ecosystem development, alongside the announcement of rare-earth corridors across eastern and southern India, will significantly strengthen domestic supply chains. Equally important is the focus on green competitiveness, with meaningful allocations for carbon capture and decarbonisation, aligning sustainability with industrial performance.
Aligned with the geo-strategic realities, the defence sector emerges as a key pillar of this Budget. With defence receiving the second-highest allocation with about 25% increase in the modernisation budget, the emphasis is firmly on upgrading platforms, systems and technologies, while improving procurement efficiency. The message to industry is clear: deepen long-term capability, technology and Aatmanirbharta or self-reliance.
I laud Madam Minister’s special thrust on Information Technology Services for companies setting-up Data Centers and Cloud Services from India; the 22yr tax holiday for such investments is a well-thought initiative aimed at Global leadership in this segment.
Finally, the focus on university-industry clusters and AI-led productivity will help India fully leverage its demographic dividend. Overall, the Budget provides industry the confidence to invest, innovate and partner in building a globally competitive Indian economy.”
The Union Budget 2026 places strong emphasis on manufacturing, infrastructure expansion, defence modernisation, digital infrastructure and sustainability, reinforcing India’s ambition to emerge as a resilient and globally competitive economy.
