India’s Union Budget 2026–27 has drawn a largely positive response from industry leaders, with many highlighting its emphasis on infrastructure-led growth, support for small businesses, digital capability building and renewable energy as key drivers of long-term economic resilience.
For the country’s vast MSME and digital commerce ecosystem, the Budget signals a move away from isolated incentives towards a more integrated policy framework. Vidit Aatrey, Co-founder, Managing Director and CEO of Meesho, said the introduction of a ₹10,000 crore SME Growth Fund, deeper integration of the Trade Receivables Discounting System (TReDS) with the Government e-Marketplace (GeM), and stronger credit guarantees could significantly ease working capital constraints for small sellers. He noted that these measures would be particularly impactful in Tier II and Tier III markets, where e-commerce adoption is accelerating.
Mr Aatrey also pointed to the government’s focus on logistics infrastructure, cluster modernisation and cost-efficient supply chains as critical to lowering operational costs for small businesses. Beyond MSMEs, he said the Budget’s push to strengthen digital infrastructure — including data centres and cloud capacity — would reduce costs and support wider adoption of AI-driven tools across enterprises of all sizes.
The commercial real estate and coworking sector has also welcomed the Budget’s emphasis on regional development. Manas Mehrotra, Founder of 315Work Avenue, said the focus on infrastructure-led growth and the development of Tier II and Tier III cities as new economic hubs could drive demand for flexible office spaces. The enhanced capital expenditure of ₹12.2 lakh crore and the creation of City Economic Regions, he said, would improve urban connectivity and encourage businesses to expand beyond traditional metros.
According to Mr Mehrotra, initiatives aimed at creating “champion MSMEs” through growth funds, liquidity support and formalisation frameworks such as Corporate Mitras would lead to a larger pool of scaling enterprises seeking compliant, cost-efficient and professionally managed workspaces. Coworking spaces, he added, offer such businesses the flexibility to grow without long-term lock-ins or high upfront investments.
From the services and education perspective, Mr Thyagu Valliappa, Founder of SCALE and Vice Chairman of the Sona Valliappa Group, described the proposed ‘Education to Employment and Enterprise’ Standing Committee as a forward-looking step. He said the initiative recognises the need to align education, skills and employability with the evolving services economy, particularly in emerging technologies such as artificial intelligence.
Mr Valliappa also welcomed Safe Harbour provisions and renewed incentives for Special Economic Zones (SEZs), noting that they provide greater predictability and confidence for Global Capability Centres and service-sector enterprises. While he acknowledged the absence of major “big bang” reforms, he said the Budget offers long-term direction through its focus on electronics, semiconductors, data centres, AYUSH and marine manufacturing.
In the renewable energy sector, Chandra Kishore Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, said the Budget had rightly prioritised India’s long-term energy security. He welcomed the customs duty relief on sodium antimonate used in solar glass manufacturing, which he said would reduce input costs and boost domestic solar equipment production. The extension of customs duty exemptions for capital goods used in lithium-ion cell and battery energy storage system manufacturing, he added, would strengthen the viability and reliability of solar power by addressing intermittency challenges.
Together, industry leaders say the Budget lays the groundwork for more inclusive, sustainable and regionally balanced growth, aligning enterprise expansion, talent development and clean energy with India’s longer-term economic ambitions.
