New Delhi [India], February 1 : The Union Budget 2026-27 has drawn positive reactions from industry for its focus on manufacturing priorities, export competitiveness, and the transition to cleaner technologies. Industry experts have noted that the fiscal roadmap reinforces India's position as a reliable global sourcing hub by prioritising capacity expansion and domestic value chains.
Industry experts highlighted that the budget's emphasis on Micro, Small, and Medium Enterprises (MSMEs) through improved credit access and productivity measures is encouraging for the automotive component sector. These steps are expected to facilitate sustained investments in innovation and technology.
Commenting on the fiscal proposals, Vikrampati Singhania, President of the Automotive Component Manufacturers Association of India (ACMA), said, "The Union Budget 2026-27 lays a clear and credible roadmap for strengthening India's manufacturing ecosystem. The sustained focus on MSMEs, clean mobility, and export facilitation will help the auto component industry navigate global headwinds while positioning India as a competitive and trusted manufacturing and sourcing destination."
Other experts pointed toward the significance of clean-energy technologies and electric mobility. Support for localising critical components, including power electronics and batteries, is seen as a move to reduce import dependence and strengthen domestic supply chains.
They also noted that the rationalisation of customs duties and correction of inverted duty structures are expected to improve the ease of doing business across the industrial landscape.
Mehul Pandya, MD and Group CEO of CareEdge Ratings, noted that the budget underscores a decisive push to scale manufacturing and deepen infrastructure investment. "The continued rise in capital expenditure to Rs 12.2 lakh crore signals the government's commitment to long-term capacity creation. This Budget sends a clear and positive message on financial sector strength and future readiness," Pandya stated.
He added that reforms in municipal and corporate bonds would likely expand long-term funding avenues for the sector.
The focus on trade facilitation and logistics efficiency is considered timely by experts, given current global trade uncertainties. Measures to address non-tariff barriers and improve access to export credit are intended to further integrate domestic manufacturers into global supply chains.
Sadaf Sayeed, CEO, Muthoot Microfin, said, "Budget 2026-27 marks a strategic evolution in rural development, moving beyond credit access to enterprise creation. The expansion of Lakpati Didi into She-Marts and community-owned retail outlets represents a transformative shift, enabling women to transition from beneficiaries to business owners within formal value chains."
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