The industry body PHD Chamber of Commerce and Industry (PHDCCI) welcomed the Union Budget 2026-27, highlighting its focus on inclusive growth and structural transformation aimed at realizing the long-term vision of a Viksit Bharat.
“We appreciate that this year’s Budget is guided by the ‘Three Kartavya’—accelerating and sustaining economic growth, fulfilling the aspirations of people to make them partners in India’s growth story, and ensuring inclusive access to opportunities to strengthen India’s economic and social foundations amid global uncertainties,” said Mr. Rajeev Juneja, President, PHDCCI.
The capital expenditure of ₹12.2 lakh crore, closely aligned with PHDCCI’s pre-budget recommendation of ₹12.98 lakh crore, will boost infrastructure development and address supply chain bottlenecks. Fiscal prudence continues, with the fiscal deficit estimated at 4.4% in FY26 (Revised Estimates) and projected at 4.3% in FY27 (Budget Estimates).
Key Highlights Under the Three Kartavya Framework:
- Kartavya 1: Sustained Economic Growth
- Focus areas include scaling up manufacturing in seven strategic sectors, rejuvenating legacy industries, creating champion MSMEs, boosting infrastructure, ensuring long-term security and stability, and developing city economic regions. These measures aim to increase the contribution of manufacturing to GDP and support long-term growth.
- Kartavya 2: Employment and Skills Development
- The Budget emphasizes services-led employment and aligning education with industry needs. A proposed high-powered Education-to-Employment Standing Committee will guide the growth of the services sector, expanding job opportunities, productivity, and inclusive economic growth.
- Kartavya 3: Inclusive Growth
- Measures include enhancing farm incomes, promoting women-led enterprises, and targeted regional development to strengthen rural demand, expand entrepreneurship, and create a resilient economy. Dedicated programs for Indian cashew and cocoa will boost production, processing, exports, and global competitiveness by 2030.
MSME and Financial Sector Support
To support the MSME sector, the Budget allocates ₹10,000 crore to the SME Growth Fund and a ₹2,000 crore top-up to the Self-Reliant India Fund, facilitating growth, liquidity, and risk-capital availability for micro and small enterprises.
Tax and Regulatory Reforms
PHDCCI welcomed direct tax reforms including the simplified Income Tax Act, reduced TCS rates, and lower MAT, noting that these measures will improve tax certainty, ease compliance, and strengthen India’s investment climate. Measures to reduce litigation and support small taxpayers are expected to free up capital, boost consumer confidence, and support sustained growth.
Trade, Manufacturing, and Clean Energy Initiatives
To enhance competitiveness and exports of labor-intensive goods such as marine and leather products, duty-free limits for specified inputs have been increased. The Budget also provides basic customs duty exemptions for capital goods used in lithium-ion cell manufacturing and extends duty exemptions for nuclear power projects to 2035, supporting clean energy initiatives and semiconductor manufacturing, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.
