The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, emphasizes sustained infrastructure investment with public capital expenditure rising to ₹12.2 lakh crore, fiscal consolidation targeting a 4.3% GDP deficit, and strategic pushes in manufacturing, critical minerals, semiconductors, textiles, and services sectors. Key measures include support for rare earth corridors, data centers with tax incentives, mega textile parks, hospitality skilling, and liberalized foreign investment in equities.
Industry experts from aviation, economics, textiles, tourism, and wealth management have welcomed the balanced, long-term oriented approach that prioritizes efficiency, employment, and global competitiveness while maintaining fiscal prudence.
Logistics and Aviation Sector Gains from Multi-Modal Freight Push
Dr. Vandana Singh, Chairperson, Aviation Cargo, Federation of Aviation Industry in India (FAII), highlighted the Budget’s rebalancing toward sustainable cargo modes:
“The Union Budget 2026–27 reflects a measured and structurally focused approach to strengthening India’s freight and aviation ecosystem. Continued investment in Dedicated Freight Corridors, the operationalisation of 20 new National Waterways, and the Coastal Cargo Promotion Scheme aimed at increasing the share of waterways and coastal shipping from 6% to 12% by 2047 signal a clear intent to rebalance cargo movement towards more cost-efficient and sustainable modes. Complementing this are proposed customs reforms, including AI-enabled risk assessment, faster clearances, and a unified digital window, which should improve predictability and reduce dwell times for cargo operators. On the aviation side, sustained support for regional connectivity through schemes such as UDAN, along with a higher capital expenditure outlay of ₹12.2 lakh crore for infrastructure, is expected to aid airport upgrades and logistics hubs. Overall, the budget prioritises long-term efficiency, connectivity and competitiveness across India’s cargo and aviation value chains.”
These align with announcements on dedicated freight corridors, national waterways expansion, and UDAN enhancements to boost regional air links.
Capital Market Reforms Signal Maturity and Deeper Participation
Sanchita Mukherji, Business Economist and Managing Partner, Talk The Walk, commended the calibrated opening to foreign investors:
“The Union Budget 2026 marks an important step in India’s capital market evolution. The decision to permit foreign individuals to invest directly in Indian equities reflects a calibrated and forward-looking approach to reform. By enhancing the individual investment limit from 5% to 10% and raising the overall cap from 10% to 24%, the government is widening participation while retaining essential prudential safeguards. This measured liberalisation can strengthen price discovery, deepen shareholding structures, and support long-term capital formation. Equally, sustained regulatory oversight will be critical to preserve market stability and ensure alignment with India’s broader economic priorities. Overall, the move signals growing confidence in the resilience, depth, and maturity of India’s capital markets.”
Textiles Sector Boost for Employment and Global Competitiveness
Dipali Mathur Dayal, Mrs India 2025, noted the inclusive modernization efforts:
“The Union Budget 2026 offers a balanced and forward-looking push for India’s textile sector. The textile expansion scheme and Samarth 2.0 will strengthen skills and employment, especially for women and rural youth. Mega textile parks in challenge mode can drive scale and global competitiveness, while the Mahatma Gandhi Gram Samaj initiative preserves khadi and handicrafts. Together, these measures blend modernisation with tradition, enabling inclusive growth and a stronger global presence for Indian textiles.”
The Budget’s integrated textile programs, including mega parks and skill initiatives, aim to enhance employment in this labor-intensive sector.
Tourism and Hospitality Professionalization for Long-Term Growth
Sameer Puri, Managing Director, Kestone Utsav, emphasized structured skilling and destination enhancement:
“The Union Budget 2026–27 appears to reinforce tourism as a long-term economic and employment lever rather than a short-term stimulus. The proposal to upgrade the National Council for Hotel Management and Catering Technology into a National Institute of Hospitality reflects a recognition of the sector’s growing need for structured skilling and professionalisation. Initiatives such as the upscaling of 10,000 tourist guides across 20 iconic destinations and the development of a National Destination Digital Knowledge Grid are likely to enhance destination quality and visitor engagement over time. Coupled with sustained investments in infrastructure, connectivity and experiential tourism, these measures suggest a steady policy focus on strengthening the hospitality value chain and improving India’s competitiveness as a global tourism destination.”
Wealth Management Perspective: Forward-Looking Yet Disciplined
Roopali Prabhu, CIO and Head of Products and Solutions at Sanctum Wealth, provided a macro view:
“The expectations from this Budget were modest, given subdued growth in income tax collections and the government’s strong commitment to fiscal deficit targets. The emphasis on rare earth minerals, data centers and semiconductors is a forward-looking strategy designed to lay the foundation for the next phase of growth. Announcements related to textile manufacturing and SME support programs are encouraging and could potentially contribute to meaningful employment creation. Any move away from the path of fiscal consolidation could have added to the existing weakness in the rupee. The government’s continued adherence to fiscal discipline, with a FY27 deficit target of 4.3% therefore comes as a relief. We also anticipate further expansion of available REIT/InvITs instruments for investors as the government pursues its objective of monetizing its real estate assets. Overall, there are no major catalysts for the equity market, although select sectors such as pharma, chemicals and textiles have seen some positive announcements.”
The Union Budget 2026-27 reinforces India’s commitment to structural reforms, infrastructure-led growth, and sectoral self-reliance amid global uncertainties. Expert reactions reflect broad optimism that these targeted measures will drive sustainable employment, attract investments, and position India for resilient, long-term economic progress toward Viksit Bharat.
Last Updated on: Tuesday, February 3, 2026 11:18 am by Monisha Angara | Published by: Monisha Angara on Tuesday, February 3, 2026 11:17 am | News Categories: India
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