The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, outlines a forward-looking strategy aligned with the vision of Viksit Bharat 2047, with a focus on strengthening India’s economic foundations through targeted support for manufacturing, MSMEs, agriculture, skills, and infrastructure.
The Confederation of Indian Industry (CII) Southern Region welcomed the Budget, describing it as balanced and growth-oriented, with the potential to support employment generation, enterprise expansion, and inclusive development across southern India.
Thomas John Muthoot, Chairman, CII Southern Region and Chairman and Managing Director of Muthoot FinCorp, said the Union Budget 2026 provides a clear roadmap for long-term economic growth. He noted that the emphasis on manufacturing, MSMEs, agriculture, and education strengthens the country’s economic base while supporting productivity, infrastructure development, and export competitiveness.
According to him, these measures will drive sustained growth, generate employment, enhance India’s global economic standing, and significantly benefit the southern states.
Muthoot also highlighted the positive impact on the financial sector, particularly non-banking financial companies (NBFCs).
He said the government’s continued focus on financial inclusion, improved access to credit, and technology-driven reforms would enable NBFCs to reach underserved segments more effectively.
He added that strengthening the financial ecosystem would support entrepreneurship, boost consumption, and deepen trust in formal credit channels, creating opportunities for sustainable growth across sectors.
Ravichandran, Deputy Chairman, CII Southern Region and President of Danfoss India, said the Budget strikes a careful balance between fiscal prudence and ambitious growth.
He welcomed the focus on sectors such as bio-pharma, semiconductors and electronics, rare earths, and container manufacturing, stating that these initiatives would strengthen India’s industrial capabilities and export competitiveness.
He also underscored the strong support for MSMEs, noting that easier access to credit, technology adoption, and skill development would help small and medium enterprises scale operations, innovate, and contribute to employment generation and regional economic growth.
Ravichandran pointed to the proposed outlay of Rs 20,000 crore over the next five years for Carbon Capture Utilisation and Storage technologies, which he said could accelerate the adoption of sustainable practices across key industrial sectors and reinforce India’s commitment to net-zero goals.
Unnikrishnan, Chairman, CII Tamil Nadu State Council and Managing Director of the Glass Group at Saint-Gobain India, said Tamil Nadu stands to benefit from several significant opportunities arising from the Budget. He highlighted expectations of increased industrial investment and job creation through high-value manufacturing in sectors such as electronics, electric vehicles, and defence.
He also noted that the launch of Semiconductor Mission 2.0 and related electronics manufacturing initiatives would further strengthen the state’s supply chain and manufacturing ecosystem.
Additionally, strategic manufacturing in technical textiles, sports goods, and leather was expected to offer further growth potential. The capital expenditure allocation of Rs 12.2 lakh crore, he added, would strengthen infrastructure development and stimulate growth across construction and allied sectors in the state.
