The union budget 2026 has elicited varied yet largely positive reactions from industry leaders across manufacturing, food, education, and investment sectors. From the reactions we have received, stakeholders see the budget as a forward-looking roadmap that balances growth, sustainability, and structural reform, while aligning policy direction with India’s long-term economic aspirations.
Arvind Singhania, chairman and CEO of Ester Industries, welcomed the government’s push toward advanced materials, textiles, and industrial decarbonization. He said the integrated program for the textile sector, with its focus on man-made and new-age fibers, technology modernization, and expanded skilling under SAMARTH 2.0, would strengthen India’s manufacturing competitiveness. According to him, the policy direction supports faster capacity creation, higher value addition, and deeper integration into global supply chains, particularly for specialty materials players.
Singhania highlighted the ₹20,000-crore allocation for scaling up carbon capture technologies across hard-to-abate sectors such as chemicals and refineries, calling it a pragmatic recognition that industrial growth and decarbonization must progress together. He added that the emphasis on modernizing clusters, enabling technology adoption, and strengthening the fiber-to-fashion value chain signals a shift from scale-driven growth to sophistication-led manufacturing, while underscoring the need for swift execution.
Jeevaraj Pillai, whole-time director and president – flexible packaging and new product development, UFlex, termed the Union Budget 2026–27 as growth-oriented and strengthened India’s ambition to emerge as a global manufacturing hub.
“The strong emphasis on expanding industrial capacity, developing dedicated chemical infrastructure, improving logistics, and enhancing export competitiveness will significantly benefit the packaging industry, which plays a critical role in supporting key sectors such as food, pharmaceuticals, FMCG, and consumer goods.”
The budget’s focus on manufacturing, supported by an allocation of Rs600 crore for a new scheme to establish three dedicated chemical parks across states, creates a conducive environment to scale specialty chemicals, coatings, inks, and advanced packaging materials, while strengthening supply chain resilience and domestic value addition, he said.
“The scheme will offer cluster-based, plug-and-play facilities, enabling medium- and small-sized enterprises to expand operations using shared infrastructure, without the burden of fresh capital expenditure. In addition, the substantial increase in capital expenditure to ₹12.2 lakh crore is expected to benefit the FMCG industry by improving logistics efficiency, strengthening supply chain infrastructure, and enhancing last-mile connectivity. This infrastructure-led push will drive higher demand for packaged products and support improved capacity utilization across the packaging industry.”
These measures will contribute significantly to the growth of the packaging ecosystem and make India a globally competitive manufacturing economy, Pillai said.
Kunal Bajaj, director, Jupiter Group, highlighted the impact of the budget on manufacturing, packaging, ease of doing business, technology adoption, and long-term policy stability.
“The Union Budget 2026 sends a strong and reassuring signal to India’s manufacturing sector by moving decisively from intent to execution. Continued public capital expenditure, tax reforms to boost manufacturing, and measures such as customs duty rationalisation, deferred duty payment for trusted manufacturers, and supply-chain facilitation directly improve ease of doing business on the factory floor. For packaging manufacturers, the broader emphasis on high-value manufacturing and revitalisation of legacy industrial clusters strengthens domestic capacity and global competitiveness,” Bajaj said.
The Budget’s push towards technology adoption, including AI-led manufacturing processes, will help improve productivity, quality, and operational efficiency, he said. “Sustaining GDP growth at around 7% while maintaining fiscal discipline provides the policy stability entrepreneurs value most, reinforcing confidence to invest, expand capacities, and build resilient, India-anchored value chains aligned with Make in India and Viksit Bharat,” Bajaj said.
Food Industry
From the food and FMCG sector, Bipin Hadvani, founder of Gopal Snacks, described budget 2026–27 as balanced in its approach to agriculture, food processing, and consumption-led growth. He said measures aimed at improving farmer incomes, strengthening agri-value chains, and leveraging technology through initiatives such as Bharat-VISTAAR would benefit both producers and FMCG players. Enhanced investment in infrastructure and logistics, he added, would help reduce costs and improve market access, while the emphasis on rural entrepreneurship and women-led enterprises is expected to drive demand in semi-urban and rural markets.
Sanjay Singal, CEO of Wagh Bakri Tea Group, echoed similar sentiments, stating that the budget strengthens the linkage between agriculture and FMCG through farmer-centric initiatives, infrastructure development, and technology adoption. He noted that steps aimed at improving farm productivity, reducing risk, and enhancing market access would benefit plantation crops such as tea. Singal also highlighted the focus on rural incomes, women-led enterprises, MSME financing, and investments in logistics, freight corridors, and customs process simplification, which are expected to improve supply chain efficiency and export competitiveness. The launch of Bharat-VISTAAR, integrating AgriStack portals with ICAR’s agricultural knowledge, he said, could further boost productivity and reduce farm-level risks.
Education
In the education sector, Sudhir Nanavati, President of GLS University, said the union budget demonstrates a strong focus on education, skilling, and the transition from education to employment. He welcomed proposals such as University Townships near industrial corridors, increased investment in STEM infrastructure, and targeted support for women students, noting that these measures would strengthen higher education outcomes. Nanavati also praised initiatives like AVGC Content Creator Labs in schools and colleges, calling them a future-ready step aligned with emerging industry needs.
Dr. Manjula Pooja Shroff, Founder and CEO of Kalorex, welcomed the focus on the Orange Economy, particularly the establishment of content labs in high schools and colleges. However, she raised concerns regarding the sudden implementation of labour codes, highlighting potential non-compliance and litigation risks during the interim period. She noted that employers require adequate preparatory time and a supportive regulatory and enforcement approach to ensure smooth adoption.
Others
Commenting on the broader economic impact, Mihir Joshi, managing director of GVFL (Gujarat Venture Finance Limited), said the Budget lays out a strong roadmap for India’s next phase of growth, with a clear focus on manufacturing, infrastructure, and structural reforms while maintaining financial prudence. He highlighted measures such as the ₹10,000 crore SME Growth Fund, higher allocation for the Self-Reliant India Fund, expansion of PLI-linked sectors, and sustained public capital expenditure as significant enablers for startups and investors.
Joshi added that the emphasis on financial sector reforms and ease of foreign investment would improve capital availability and reinforce investor confidence. In the context of global challenges such as tariffs and economic uncertainty, he said the Budget strikes the right balance between ambition and stability, positioning India as a long-term, innovation-led growth market.
