Budget Reaction: Industry Sees Growth through Innovation & Infra

The industrial sector has largely reacted positively to this year’s Union Budget, with a focus on boosting production, innovation, and green technologies. With increased investments in manufacturing infrastructure, tax reliefs, and PLIs, the budget presents a clear roadmap for achieving India’s ambitious goal of becoming a global industrial powerhouse. Industry bodies have particularly praised the government’s push towards sustainable manufacturing and technological advancement, which is expected to propel sectors like automotive, electronics, and renewable energy into new growth trajectories.

Sanjay Choudhari, Chairman, SBL Energy

The Union Budget 2026-2027 points to a clear strategic response to the growing global trade tensions and supply-chain vulnerabilities. By establishing dedicated rare earth corridors across mineral-rich states and supporting downstream processing, research, and manufacturing, the government is addressing one of India’s most critical dependencies access to strategic materials dominated by global monopolies. This initiative not only strengthens domestic capabilities but also provides a significant boost to the mining sector, incentivizing exploration, commercial-scale extraction, and integration with downstream industries. 

Apart from this, the parallel push to strengthen manufacturing across priority sectors, including the creation of dedicated chemical parks, reflects a shift from fragmented capacity to integrated industrial ecosystems. To sum it all up, these measures reduce import dependence, build supply-chain resilience, and position India as a more reliable and competitive player in global manufacturing networks.

Benjamin Lin, President, Delta Electronics India

This Budget brings together multiple strands of India’s manufacturing and technology growth story in a balanced and forward-looking manner. The ₹40,000 crore allocation for India Semiconductor Mission 2.0 and the enhanced outlay for electronics components manufacturing point to a clear focus on scale, depth, and ecosystem development. When seen alongside targeted support for MSMEs through a ₹10,000 crore growth fund, the policy framework addresses both large-scale manufacturing and the strength of the supplier base. By aligning capital support with capability building and innovation, the Budget creates a solid foundation for sustainable, technology-led growth and reinforces India’s ambition to emerge as a globally competitive electronics manufacturing hub.

Gaurav Lath, Joint Managing Director, Concord Control Systems

The FY27 Union Budget lays out a transformative blueprint for India’s transport future, powered by a record capital outlay of ₹17.14 lakh crore in effective capex. This unprecedented investment reinforces railways as the backbone of India’s long-term mobility and logistics strategy. By enabling high-speed connectivity, strengthening freight corridors and accelerating nationwide logistics efficiency, the government is building the foundations of a seamless, future-ready movement ecosystem for a $10 trillion India.

The Budget’s emphasis on indigenization and advanced technologies reflects a maturing industrial landscape one where resilience, innovation and global competitiveness will define the next decade of India’s railway evolution.

For Concord Control Systems, this moment is more than an opportunity it is a call to leadership. As India builds intelligent, autonomous and technology-driven rail networks, we are committed to advancing the control, signaling and electronics backbone that will power this transformation. The nation is entering an unprecedented era of rail modernisation, and we are proud to be among the pioneers shaping that journey.”

Madhav Sheth, CEO  Ai+ Smartphones and Founder of NxtQuantum Shift Technologies

Budget 2026–27 is a decisive signal that India is now playing for depth, not just scale, in electronics doubling the push on ECMS, expanding electronics PLI to ₹40,000 crore, and rolling out Semiconductor Mission 2.0 across equipment, materials, supply chains and Indian IP. This is how we move from being an assembly base to building a resilient, high-value, India-led ecosystem de-risking investments in components like display assemblies, camera modules and advanced PCBA, strengthening capital-goods capability through high-tech tool rooms, and cutting import dependence while boosting export competitiveness.

For Ai+ Smartphone and NxtQuantum, it creates the runway to deliver on our core belief ‘Made in India’ must mean ‘Designed in India’ by building software-first, India-governed products and a trusted device ecosystem anchored in Indian-owned IP and stronger local manufacturing depth.