As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026-27 on February 1, 2026, industry voices from diverse sectors are calling for targeted policy measures to sustain India’s economic momentum. With the budget expected to emphasize manufacturing under Make in India, digital transformation, renewable energy integration, MSME support, and infrastructure development, leaders highlight priorities like extending incentive schemes, enhancing skilling, rationalizing taxes, and strengthening supply chains.
Industry experts stress that the budget presents a pivotal opportunity to transition from policy intent to tangible impact, particularly in non-metro regions and emerging sectors.
Driving Digital Inclusion and Grassroots Innovation
Niraj Kacha, Founder & CEO of KiWeb Solution, underscores the need for broader digital reach beyond urban centers. “As an industry founder working closely with MSMEs and startups, I believe India’s next phase of digital growth will depend on three fundamentals: robust internet infrastructure, practical AI and digital marketing education, and execution that extends well beyond metro cities. Budget 2026–27 has an opportunity to move Digital India from intent to impact by enabling affordable broadband in Tier II and III regions, supporting industry-led skilling programs, and incentivizing startups that create local digital employment. With the right policy push, India can evolve from a digital adoption market into a global talent engine powered by grassroots innovation.”
Strengthening Mobile Manufacturing and Logistics
Ravi Kunwar, VP and CEO, HMD India and APAC, advocates for continuity in production incentives amid India’s rising mobile exports. “As India prepares for the Union Budget 2026, we urge the government to extend the smartphone PLI scheme beyond March 2026 and introduce a strengthened PLI 2.0 with enhanced incentives of up to 6% on incremental sales. This will be critical in order to sustain India’s projected $75 billion in mobile production and over $30 billion in exports by FY26, while building on the 1.33 million jobs generated under the Make in India initiative.
Going forward, policy interventions should further reinforce Make in India through incentives for local manufacturing, raw material subsidies, export support, investments in R&D, AI-driven innovation, and skill development.
Parallelly, we also request a focused allocation toward multimodal logistics infrastructure including rail corridors, roads, warehousing, logistics parks, and power subsidies. This step can significantly reduce logistics costs, currently estimated at 7.9% of GDP, while streamlining supply chains and component imports. Such targeted measures will drive in the direction of deeper manufacturing commitments, strengthen supply-chain resilience, and firmly position India as a globally competitive and sustainable technology export hub.”
Powering Data Centers and Renewable Energy
Bimal Khandelwal, CEO, STT GDC India, emphasizes treating digital infrastructure as a national priority. “As India accelerates its digital and AI ambitions, we are expecting the upcoming Union Budget to focus on three critical enablers:
- Elevating data centers from infrastructure status to actually treating them as an End-to-End National Digital Infrastructure with coherent policies on power access, renewable integration, land availability and faster time-bound approvals across central, state and local authorities
- strengthening the country’s power transmission backbone and providing policy certainty for renewable energy adoption at scale.
- Given the central role of digital infrastructure in India’s economic and strategic ambitions, these enablers will be critical to sustaining long-term growth and strengthening India’s global competitiveness.”
Advancing Make in India for Manufacturing
Andre Eckholt, Managing Director – Hettich India, SAARC, Middle East & Africa, calls for extended incentives to support long-term investments. “As Make in India enters a decisive phase, the Union Budget 2026 presents an important opportunity to further strengthen India’s manufacturing sectors. To take this momentum to the next level, the Budget should expand and refine the PLI framework across key industries and extend incentive timelines to provide greater certainty for long-gestation manufacturing investments. A supportive and predictable policy environment can accelerate local manufacturing and reinforce India’s position as a reliable production hub for both domestic and export markets. Sustained policy support under the Make in India initiative will enable domestic manufacturers to scale up, innovate, and compete globally.”
Supporting Gems and Jewellery Sector Competitiveness
Parag Shah, CEO, Kisna Diamond & Gold Jewellery, highlights tax rationalization to boost exports and formalization. “As the Union Budget 2026 approaches, the gems and jewellery industry seeks targeted policy support for a sector that is a major employment generator and export contributor. Rationalising import duties and GST on gold, silver and jewellery is critical to improving cost competitiveness and sustaining demand, especially in a low-margin industry facing rising input costs. A stable, predictable tax framework would boost consumption, enhance export pricing and curb informal trade.
Addressing blocked input tax credits on essential services like security, logistics, rentals, insurance and compliance is equally important, as these constraints strain liquidity and raise operating costs. Simplified ITC provisions would unlock working capital and accelerate formalisation. The industry also recommends capping digital payment charges at a fixed rupee value to encourage digital adoption for high-value transactions. Finally, enabling compliance for MSMEs through simplified returns and harmonised reporting would support productivity, scale and long-term growth.”
These expectations align with broader pre-budget sentiments focusing on manufacturing revival, infrastructure enhancement, and inclusive growth to position India as a global economic powerhouse. The budget’s outcomes will be closely watched for their potential to address these sector-specific needs while maintaining fiscal discipline.
Last Updated on: Saturday, January 31, 2026 7:13 pm by News Pixel Team | Published by: News Pixel Team on Saturday, January 31, 2026 7:13 pm | News Categories: News
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