The Union Budget 2026 has drawn positive reactions from industry leaders across automotive, technology, manufacturing and cybersecurity sectors, with stakeholders highlighting its emphasis on infrastructure-led growth, fiscal discipline and long-term competitiveness.
Santosh Iyer, MD & CEO, Mercedes-Benz India, said,
“Budget’s strong focus on infrastructural development, with addition of Rs 1 lakh crore in capex, is a step in right direction developing the country’s evolving mobility ecosystem. Better highways and improved intercity connectivity have historically driven luxury car demand in India. The fiscal prudence reflected in the 4.3% deficit target, combined with strong focus on exports, sends a strong signal of macroeconomic stability, which may lead to a less volatile currency. Overall, the emphasis of the budget is on strengthening ease of doing business, and the deferral of customs duty payments up to 30 days, can improve cash flow significantly. This budget primarily focuses more on long-term gains, rather than immediate ones.”
Veena Khandke, SVP, Managing Director, Ensono (India), said,
“The Union Budget 2026 represents the Government of India’s bold commitment to positioning the IT services sector as the cornerstone of ‘Viksit Bharat.’ As a global leader in cloud migration, mainframe modernization, and digital transformation, Ensono applauds game-changing reforms that boost ease of doing business. The Safe Harbor threshold expansion to ?2,000 crore with automated approvals and fast-tracked two-year Advance Pricing Agreements establish tax certainty, encouraging foreign investment and innovation in India’s technology sector.
Equally transformative is the tax holiday until 2047 for cloud service providers leveraging Indian data centers. This landmark policy positions India as a global hub for cloud computing, unlocking opportunities in hyperscale infrastructure, enterprise cloud solutions, cybersecurity, and AI-powered managed services – areas central to Ensono’s expertise.
The government’s focus on workforce development through artificial intelligence upskilling, quantum computing initiatives, and STEM education for women ensures India builds future-ready talent. By creating pathways from education to entrepreneurship, Budget 2026 supports India’s ambitious target of capturing 10% global IT services market share by 2047.
These strategic measures reinforce technology as an economic growth driver, positioning India for sustainable competitiveness in the global digital economy.
Commenting on digital infrastructure and cybersecurity, Nikhilesh Wani, CEO and Co-founder of Byteseal, said,
“The Union Budget 2026–27, with ₹21,632 crore allocated to the Ministry of Electronics and Information Technology, reinforces India’s commitment to scaling its digital public infrastructure. As digital identity platforms expand across governance, finance, and citizen services, securing digital and biometric identities becomes mission-critical. Systems built on biometric authentication, such as Aadhaar-linked services, must be protected with strong identity security, data protection, and fraud-prevention frameworks. Sustained focus on securing digital identities will be central to preserving trust, enabling safe digital inclusion, and strengthening India’s long-term cyber resilience.”
Mukund Vasudevan, MD SKF India (Industrial) Limited and President – India, Southeast Asia and Middle East, said,
“The Union Budget 2026–27 delivers a clear, confidence boosting push for India’s industrial growth. Despite maintaining fiscal discipline, the higher public CAPEX of ₹12.2 lakh crore signals strong momentum for manufacturing and infrastructure.
Reforms focused on financial access, technology adoption, and competitiveness lay the groundwork for long-term industrial strength – key for India to scale and compete alongside with global players. Investments in freight and industrial corridors, along with logistics upgrades, will lower costs, strengthen supply chains, and make Indian manufacturing more efficient.
MSME-focused steps such as the Growth Fund and an expanded TReDS ecosystem should ease liquidity and improve access to capital. Overall, the Budget reinforces India’s direction toward localization, private investment, and resilient industrial growth, giving businesses greater clarity and confidence to scale.
