Union Budget 2026 Gets Thumbs Up From Pune-Based Industry Leaders  

Pune, February 02, 2026: Pune-based industry leaders and corporate executives have broadly welcomed the Union Budget 2026, describing it as a balanced and forward-looking blueprint that aligns fiscal discipline with long-term economic growth. Business heads from the city’s strong manufacturing, automotive, technology, engineering, real estate and MSME ecosystem said the Budget reinforces confidence in India’s investment-led growth strategy at a time of global economic uncertainty. 

The sharp focus on higher capital expenditure, infrastructure expansion, advanced manufacturing, clean energy and technology-led reforms was seen as particularly relevant for Pune, which has emerged as a major hub for automotive engineering, EVs, IT services, industrial manufacturing and R&D. Corporate leaders noted that sustained public spending on highways, rail corridors, logistics and urban infrastructure would strengthen connectivity, reduce costs and improve competitiveness for Pune-based companies with global operations. Measures aimed at strengthening domestic value chains in semiconductors, electronics, rare earth minerals and critical components were viewed as timely steps to enhance supply-chain resilience and support future-ready sectors such as EVs and advanced mobility. 

The ₹10,000 crore SME Growth Fund, along with reforms in trade facilitation, IT safe harbour norms and data centre policies, was also welcomed as a boost for the city’s large base of MSMEs, exporters and technology firms. Overall, Pune Inc believes Budget 2026 signals policy stability, long-term clarity and a strong push towards self-reliance and innovation-driven growth.

Mukund Vasudevan, MD SKF India (Industrial) Limited and President – India, Southeast Asia and Middle East

“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.”

Santosh Iyer, MD & CEO, Mercedes-Benz India
“Budget’s strong focus on infrastructural development, with addition of Rs 1 lakh crore in capex, is a step in the 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.”

Ravi Pandit, Chairman, KPIT Technologies

“The government’s decision to establish dedicated Rare Earth Corridors across mineral-rich states is a strategically important step toward securing India’s critical mineral supply chain. For the EV and clean energy sectors, domestic access to rare earth elements will strengthen manufacturing self-reliance and reduce geopolitical vulnerabilities. At the same time, what would be even more strategic is to establish a corridor that would structurally focus on reducing our dependence on rare earth free metals itself by accelerating and incentivizing innovation, creating further self-reliance. We have been able to demonstrate a rare-earth free motor technology that can be a game changer for the EV Ecosystem and is finding widespread interest. We believe such innovations across the broader ecosystem will further accelerate government efforts. With our vision anchored on creating a cleaner world, our efforts on various aspects of technology self-reliance and making the EV ecosystem more robust will continue.”

Warren Harris, CEO & MD, Tata Technologies Ltd.

“The Union Budget 2026 is a masterclass in structural reform, decisively positioning India as the world’s preferred engine for advanced manufacturing, digital engineering, and sustainable innovation. The government’s focus on rare earth permanent magnet corridors will significantly strengthen domestic supply chains critical for EVs, aerospace and advanced electronics sectors, which rely on deep engineering expertise. By launching India Semiconductor Mission (ISM) 2.0 with a fortified INR 40,000 crore outlay for electronics manufacturing, the government has transitioned our ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty. The strong push on STEM education, AI integration and large-scale youth skilling is equally impactful. Initiatives to embed AI-enabled learning systems and expand research infrastructure reflect a clear commitment to building future-ready talent for Industry 4.0.

At Tata Technologies, we welcome this Budget as a strong enabler of the Viksit Bharat vision, reinforcing India’s ambition to emerge as a global leader in digital engineering and R&D. Enhanced support for electronics manufacturing, including the expansion of component incentives to INR 40,000 crore along with streamlined IT services frameworks and higher safe harbour thresholds of INR 2,000 crore will further strengthen India’s innovation ecosystem. Incentives for aviation manufacturing and MRO will accelerate high-value engineering opportunities across mobility and aerospace.

Overall, this Budget creates a robust platform for innovation-driven growth, advanced manufacturing and global technology leadership.”

Mohammad Athar Saif, Partner and Leader CP&I and Industrial Development, PwC India–

“The Budget has done an excellent job of balancing immediate and long-term job creation by placing the integration of infrastructure and manufacturing at its core. An infrastructure outlay of 12.2 lakh crore—representing a 9% increase—reinforces the government’s sustained focus on meeting India’s evolving infrastructure needs.   Cities continue to be positioned as key growth engines, with a proposed scheme which will provide funding support of ?5,000 crore per city as per their economic regions for all cities with populations above 5 lakh, and a strong emphasis on urban mobility through seven new high-speed connectivity corridors which could collectively strengthen the economic aspirations of urban India.  

On the manufacturing front, the announcement of Semiconductor Mission 2.0, enhanced support for the electronics components scheme, plans to revitalise 200 industrial clusters, and a focused push on critical minerals could significantly strengthen India’s manufacturing ecosystem, and accelerating the country’s transition into a competitive global destination. This could also develop India’s self-reliance for emerging industries such as semiconductors, electronics, and advanced batteries, and advance the government’s vision of Viksit Bharat@2047.“

H P Srivastava, Chairman, Deccan Chamber Of Commerce, Industries and Agriculture 
Under the current geopolitical situation this is a decent budget.  By raising Capex to a record  high of ₹12.2 lakh crore, while simultaneously narrowing the fiscal deficit to 4.3%, the Finance Minister has signaled that India is ready to lead as a stable, high-growth alternative in a fragmented world. The ₹10,000 crore MSME Growth Fund is a landmark equity infusion that will empower our small-scale manufacturers to scale up their operations  without the burden of traditional debt. Simultaneously, the formalization of the Mumbai-Pune and Pune-Hyderabad High-Speed Rail corridors transforms Pune into a critical intersection of India’s most vital economic super-highway.

On Exim front, various trade facilitation measures such as increase in duty deferral period for AEOs, movement of Export cargo using Electronic sealing from factory premises to ship and removal of any cap on courier exports are welcome steps. Similarly – allowing manufacturing units in SEZ to sell their goods in DTA at concessional rate of duty as one time measure will help to tide over the current challenges being faced by them in global market.

Sudarshan Venu, Chairman, TVS Motor Company

“The Union Budget 2026 provides a strong and consistent policy framework for India’s emergence as a global powerhouse under the leadership of Prime Minister Narendra Modi. The sustained push on infrastructure, higher capital expenditure, and reforms aimed at easing business conditions will help in attracting private investment and strengthening supply-chain resilience. We welcome the focus on clean energy solutions, MSME growth, and technology-led inclusion – benefiting farmers, women in STEM, youth, and the differently abled. The focus on scaling manufacturing in strategic sectors, building domestic value chains for critical minerals and rare earths, and expanding semiconductor and advanced technology capabilities will be vital for the future of EVs, electronics, and next-generation mobility.”

Prashant Kumar, Managing Director & CEO, YES BANK

“This Budget needs to be seen in connection to the previous few year’s Budgets, especially with it comes to the FM carefully managing the near-term objectives with longer term goals. While the hopes of a bumper resource generation year were limited with the growth in FY27 pragmatically assumed at 10%, the FM achieved the objectives of reducing both the public debt and the fiscal deficits as % of GDP, thereby sticking to the roadmap of fiscal consolidation. Achieving the fiscal targets are also commendable after taking into consideration a higher resource sharing with the State Governments, as suggested by the 16^th Finance Commission.  

The long-term strategy of the budget remained focused on harnessing the demographic dividends and achieve the true potential of the economy. The Budget maintained the momentum of structural reforms with a forward-looking approach, build a financial sector that was robust and resilient and use technology, including AI, to achieve productivity. A boost to the semi-conductor sector and electronics manufacturing along with strategies to establish dedicated Rare Earth Corridors, clearly establishes the intention towards not only making the Indian economy self-reliant, but also ring fence the economy from global unrests that tend to disturb the supply chain ecosystem. The short-term challenges, specifically the strains at the labor-intensive sectors due to the US tariffs have also been addressed and seeks to promote globally competitive and sustainable textiles and apparels through capital support for machinery and technological upgradation of traditional clusters. Building on last year’s MSME-focused measures, this budget announced an equity support to the SMEs via a dedicated Rs. 10,000 crore SME Growth Fund alongside other measures to strengthen the sector.

A big move was to bring back the services sector into focus. Consequently, safe harbour rules for the IT sector were amended and the threshold for availing safe harbor was enhanced. Recognizing the sharp growth of data centres across the world and to attract global investments in this area into India, a tax holiday was provided to the sector till 2047 to foreign companies that provides cloud services to customers globally by using data centre services from India.”

Sunil Kataria, MD & CEO, Godrej Agrovet Ltd.

“Placing a strong emphasis on productivity, resilience and inclusive growth, the proposals tabled in today’s Union Budget once again reinforce agriculture as a key pillar in India’s journey towards Viksit Bharat. The targeted attention on livestock, fisheries and allied sectors showcases a clear shift towards diversified and income-resilient farm systems. In this context, the new loan linked capital support for veterinary education, hospitals, diagnostics and breeding infrastructure will expand capacity and high quality services across rural India. Additionally, future science-led interventions in the areas of cattle genetics and breeding would help accelerate livestock productivity and farm incomes. It is also encouraging to see the Government’s focus on leveraging technology-driven agriculture through the introduction of multilingual AI platform. Amidst evolving climate and market conditions, delivering customized and risk-aware advisory at a scale is need of an hour to empower farmers to make informed decisions and adapt better. We also appreciate the extension of tax deduction to primary co-operatives supplying cattle feed and cotton seed to federal co operatives and government organisations, which will strengthen formal input supply chains and improve farmer realization. Together, through a calibrated approach by integrates productivity, innovation, inclusion, and institutional support, this year’s Budget once again lays a strong foundation for a future ready agricultural ecosystem and reinforces agriculture’s role as a long term contributor to India’s economic growth.”

Sanjay Dutt, MD and CEO, TATA Realty and Infrastructure Ltd

“Union Budget 2026 reflects a deliberate policy stance anchored in continuity, reform depth, and macroeconomic resilience rather than short-term stimulus. At a time of global volatility and uneven recovery, the Budget reinforces India’s investment-led growth model, with public capital expenditure rising to ₹12.2 lakh crore in FY27. Sustained investments in integrated urban growth corridors, high-speed rail networks, national waterways, and core urban infrastructure are likely to reshape spatial economics by improving connectivity, lowering logistics costs, and enabling the emergence of new economic clusters across Tier II and Tier III cities. Over time, this can drive more balanced urbanisation, higher productivity, and decentralised growth.

A defining feature of the Budget is the long-term policy clarity extended to data centres and digital infrastructure. Tax certainty, enabling frameworks, and allied measures position India as a competitive global hub for cloud services and data storage, aligning with the broader shift towards a digital and AI-driven economy. When viewed alongside calibrated SEZ flexibility, REIT-led monetisation of public assets, and the proposed Infrastructure Risk Guarantee Fund, these initiatives signal a maturing capital ecosystem—one that improves risk allocation, enhances institutional participation, and deepens long-term capital pools for real estate and infrastructure development.

Further, the Budget’s emphasis on the expansion of GCC operations and tourism led growth into emerging cities will support high-value employment, knowledge spillovers, and sustained office demand, while tourism infrastructure investments act as multipliers for local economies—driving hospitality, retail, logistics, and housing demand. Taken together, Union Budget 2026 reinforces the structural drivers of income, employment, and investment, laying a credible foundation for steady, broad-based growth across residential, commercial, and industrial real estate over the medium to long term.”