The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, continues to prioritize infrastructure-led growth, MSME empowerment, inclusive entrepreneurship, and sectoral modernization under the vision of Viksit Bharat. With public capital expenditure hiked to a record ₹12.2 lakh crore (up from ₹11.2 lakh crore in the previous year, maintaining around 3.1% of GDP), the Budget sustains momentum in connectivity, urban expansion, and domestic manufacturing while targeting a fiscal deficit of 4.3% of GDP for prudent consolidation.
Key announcements include a ₹10,000 crore SME Growth Fund to nurture high-potential MSMEs, enhanced credit access, support for legacy industrial clusters, and targeted initiatives for women-led enterprises. The Budget also bolsters sectors like beauty & personal care, real estate, food processing, and women’s entrepreneurship through skilling, supply chain improvements, and market linkages.
MSME and Entrepreneurship Boost
The emphasis on MSMEs as engines of employment and innovation resonates strongly with small businesses in services and consumer-facing sectors.
Ankit Virmani, Director, Esskay Beauty Resources, highlighted the gains for the beauty, personal care, and salon industry:
“The Union Budget 2026 is a positive step for India’s beauty, personal care, and salon industry, especially with its strong focus on MSMEs, skilling, and entrepreneurship. The proposed SME Growth Fund and improved access to credit can be a real game-changer for new salons and independent beauty professionals, helping them secure funding, grow steadily, and become part of the formal economy. The Budget’s push to strengthen domestic manufacturing, including support for chemical parks and efforts to reduce import dependency, is particularly relevant to the beauty and cosmetics sector. Easier access to high-quality raw materials and improved supply chains will help brands control costs, maintain consistency, and invest more in innovation. What also stands out is the continued focus on education and skill development. The move towards modular, practical, and industry-aligned training will help create a more job-ready workforce for the beauty and wellness sector. This will not only address skill gaps but also open up long-term career opportunities for young professionals across salons, retail, and manufacturing. Overall, this Budget reinforces the government’s intent to support job creation, skill empowerment, and small businesses. For the beauty and salon industry, it brings long-term confidence and sets the stage for sustainable growth aligned with India’s larger economic goals.”
Real Estate Sector Outlook
The sustained infrastructure thrust and urban reforms provide indirect support for real estate, with measures like monetization of CPSE land via REITs and simplified processes for NRIs.
Mr. Manish Agarwal, Managing Director, Satya Group, and President, CREDAI Haryana, noted:
“Ahead of the Union Budget 2026, the real estate industry was hopeful for measures that would boost housing demand, streamline approvals, and enhance affordability across segments. The Budget’s strong infrastructure push, including higher capital expenditure and renewed reform momentum, offers meaningful encouragement for long-term urban expansion, particularly across Tier-1 and Tier-2 cities. The emphasis on infrastructure, connectivity, and policy reform aligns with the government’s broader Viksit Bharat narrative and reinforces confidence in India’s growth story. For premium developers, this environment expands opportunities to create world-class residential and mixed-use destinations across a wider geographic footprint. TDS on sale of immovable property by an NRI has been proposed to be deducted and deposited through resident buyers w.r.t. his/ her PAN instead of requiring a Temporary Accounting Number (TAN). This is a welcoming move for NRIs as it will reduce the overall cycle time for completion of sale deals and registration of sale deeds. Further thoughtful urban planning, supported by sustained policy focus, can unlock value, deepen market participation, and elevate the overall quality of real estate development in the country.”
Ankush Kaul, President – Sales, Marketing & CRM, Central Park, added:
“Ahead of the Union Budget 2026, the real estate sector was expecting a mix of demand-side stimulus, tax incentives and execution-friendly reforms. While some expectations remain unaddressed, the Budget’s strong emphasis on infrastructure-led growth, a reforms-over-rhetoric approach, and sustained focus on Tier-1 and Tier-2 cities provides a solid foundation for long-term sector stability. The industry continues to seek sharper support for affordable housing through rationalised transaction costs and easier access to finance to sustain mass demand. The move to monetise CPSE-owned land is a pragmatic step that can unlock urban supply, support planned densification, and attract institutional capital, enabling more balanced and productive urban development.”
Women’s Entrepreneurship Empowerment
A standout feature is the push for women-led enterprises, including the establishment of Self-Help Entrepreneur (SHE) Marts as community-owned retail platforms to provide market access, branding, and scale beyond credit-based livelihoods.
Ms. Shaifalika Panda, Founder & CEO, Bansidhar & Ila Panda Foundation (BIPF), emphasized:
“Women’s entrepreneurship is no longer about participation alone; it is about ownership, scale, and leadership. The Union Budget 2026–27 takes a decisive step in this direction by explicitly enabling women to move from credit-linked livelihoods to becoming owners of enterprises. The proposal to establish Self-Help Entrepreneur (SHE) Marts as community-owned retail platforms marks a structural shift in how women-led businesses are integrated into markets, value chains and formal retail ecosystems. By combining innovative financing, collective ownership models and cluster-level aggregation, the Budget recognises that sustainable women entrepreneurship requires more than access to loans it requires access to markets, branding and institutional support. This approach builds on the success of grassroots programmes while creating pathways for women entrepreneurs to scale, formalise and compete. For States like Odisha, where women play a pivotal role in self-help groups, micro-enterprises, agro-processing and handicrafts, such interventions can unlock significant economic and social dividends. As India advances towards Viksit Bharat, empowering women as entrepreneurs and business owners is not just a social imperative; it is an economic necessity. The Budget’s emphasis on women-led enterprises reinforces the idea that inclusive growth is most powerful when women are positioned at the centre of India’s economic transformation.”
Food Processing Sector Momentum
Support for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme and a proposed ₹28,000 crore allocation over five years for flagship initiatives strengthen infrastructure, cold chains, and compliance.
Mr. Ekansh Garg, Co-founder & CEO at Cravicious Foods, stated:
“It’s encouraging to see the Union Budget 2026–27 put the spotlight firmly on India’s food processing sector. Support for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, along with the proposed ₹28,000 crore allocation over five years for flagship food processing initiatives, signals a serious push to modernize infrastructure, expand cold storage, and strengthen production and testing facilities. For companies like ours, this creates the foundation to grow responsibly, maintain high quality, and ensure compliance. Strong infrastructure not only helps reduce wastage but also enables brands to scale efficiently and deliver products that meet both domestic and global standards. This approach makes it clear that India is committed to becoming a global hub for clean, ready-to-cook, and frozen foods, giving businesses the confidence to innovate and bring better solutions to consumers everywhere.”
The Budget 2026-27 balances fiscal discipline with targeted interventions in MSMEs, women entrepreneurship, real estate enablers, and value-added sectors like beauty, food processing, and services. Industry leaders view it as a confidence-building step toward sustainable, inclusive growth, with calls for effective implementation to translate allocations into on-ground impact.
Last Updated on: Wednesday, February 4, 2026 10:25 pm by News Pixel Team | Published by: News Pixel Team on Wednesday, February 4, 2026 10:25 pm | News Categories: News
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