Budget positions India for the next phase of growth
Emphasis on shifting from demand-led expansion to productivity-led growth, say experts
image for illustrative purpose
Kolkata: Union Budget 2026 as positioned India for its next phase of transformation with Viksit Bharat as the overarching theme. The Union Budget 2026-27 holds opportunities to set India’s role towards financial stability, while boosting businesses to be future ready—especially as they navigate the opportunities of AI adoption alongside challenges around talent, infrastructure, governance and trust.
The emphasis, experts feel, is shifting from demand-led expansion to productivity-led growth, with focus on improving infrastructure, institutional capacity, and supply-side efficiency. The Budget sees sectoral trends, especially in infrastructure, manufacturing, and exports, being closely watched for market sentiment in the coming days.
The Union Finance Minister Nirmala Sitharaman, while presenting her 9th budget, on Sunday, said that the government will exempt basic customs duty on components and parts required for the manufacture of civilian training aircraft and other civilian aircraft.
The move is aimed at strengthening India’s aviation manufacturing ecosystem and reduce dependence on imports. In a parallel measure for the defence sector, the Finance Minister proposed to exempt basic customs duty on raw materials imported for the manufacture of aircraft parts used in maintenance, repair and overhaul (MRO) as well as other operational requirements by defence units.
Sitharaman said that the measures are intented to encourage domestic production, improving cost competitiveness and supporting the growth of India’s aerospace and defence manufacturing base.
The duty exemptions form part of the government’s broader push to scale up manufacturing in strategic sectors, deepen localisation and position India as a global hub for aircraft manufacturing and maintenance services.
When it comes to the crucial MSME sector, the Budget seems to be translating MSME intent into execution.
The Rs 10,000-crore National Manufacturing Mission for sectors like footwear, toys and solar, along with higher MSME credit guarantees up to Rs 10 crore, can unlock over Rs 50,000 crore in lending and materially improve scale-up prospects for family-owned businesses.
Policy measures around spectrum rationalisation, continued support for BharatNet, and incentives for domestic manufacturing will help accelerate 5G deployments while improving cost efficiency for operators and vendors alike.
